| Segment Information |
(8)Segment Information The Company, through its ownership of Braves Holdings, is primarily engaged in the entertainment and real estate industries. The Company’s chief operating decision maker (the “CODM”), the chief executive officer, evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA (as defined below). In addition, the Company reviews non-financial measures such as attendance, viewership and social media. The financial measures utilized by our CODM do not consider intersegment revenue and expenses and, additionally, the CODM does not utilize assets presented on a segment basis to make decisions on allocating resources. As such, neither intersegment activity nor segment assets are presented herein. The Company defines Adjusted OIBDA as operating income (loss) plus stock-based compensation, depreciation and amortization, separately reported litigation settlements, restructuring, acquisition and impairment charges. However, our definition may vary from similarly titled measures used by other companies. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes stock-based compensation, depreciation and amortization, separately reported litigation settlements, restructuring, acquisition and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income (loss), net earnings (loss), cash flow provided by (used in) operating activities and other measures of financial performance prepared in accordance with GAAP. The Company identifies its reportable segments as those operating segments that represent 10% or more of its combined annual revenue, annual Adjusted OIBDA or total assets. Additionally, the Company considers how each operating segment is managed due to the products and services offered, the technologies used, the revenue sources generated, and marketing strategies deployed when evaluating its reportable segments. As a result, the Company has identified the following as its reportable segments: | ● | Baseball – operations relating to Braves baseball and Truist Park and includes ticket sales, concessions, advertising sponsorships, suites and premium seat fees, media related revenue (including BravesVision and national broadcasting rights), retail and licensing. |
| ● | Mixed-Use Development – includes retail, office, hotel and entertainment operations primarily within The Battery Atlanta and the surrounding area. |
Performance Measures The following table disaggregates revenue by segment and by source: | | | | | | | | | | | | | Three months ended | | Six months ended | | | | June 30, | | June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | amounts in thousands | | Baseball: | | | | | | | | | | | Baseball event | | $ | 161,011 | | 180,349 | | 184,749 | | 181,232 | | Media related | | | 72,853 | | 81,068 | | 75,372 | | 85,359 | | Retail and licensing | | | 21,836 | | 18,566 | | 29,119 | | 24,646 | | Other | | | 20,737 | | 7,336 | | 32,943 | | 24,703 | | Total Baseball | | | 276,437 | | 287,319 | | 322,183 | | 315,940 | | Mixed-Use Development | | | 28,682 | | 25,121 | | 54,943 | | 43,711 | | Total revenue | | $ | 305,119 | | 312,440 | | 377,126 | | 359,651 | |
When consideration is received from a customer prior to transferring services to the customer under the terms of a contract, deferred revenue is recorded. The primary source of the Company’s deferred revenue relates to suite and season ticket arrangements, as well as certain sponsorship arrangements. Deferred revenue is recognized as revenue when, or as, control of the products or services are transferred to the customer and all revenue recognition criteria have been met. The Company had long-term deferred revenue of $19.8 million and $18.9 million as of June 30, 2026 and December 31, 2025, respectively, which were included in other noncurrent liabilities in the condensed consolidated balance sheets. The Company recognized $40.7 million and $51.5 million during the three months ended June 30, 2026 and 2025, respectively, and $56.3 million during both the six months ended June 30, 2026 and 2025, of revenue that was included in deferred revenue at the beginning of the respective year. Significant portions of the transaction prices for Braves Holdings are related to undelivered performance obligations that are under contractual arrangements that extend beyond one year. The Company anticipates recognizing revenue from the delivery of such performance obligations of approximately $137.7 million for the remainder of 2026, $231.0 million in 2027, $193.3 million in 2028, $381.6 million in 2029 through 2033, and $188.0 million thereafter, primarily recognized through 2041. We have not included any amounts in the undelivered performance obligations amounts for those performance obligations that relate to a contract with an original expected duration of less than one year or for variable consideration that is a sales-based or usage-based royalty. The following tables detail Adjusted OIBDA by segment as well as a reconciliation of total segment Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: | | | | | | | | | | | | | Three months ended | | | | June 30, 2026 | | | | amounts in thousands | | | | Baseball | | | Mixed-Use Development | | | Total | | | | | | | Revenue from external customers | | $ | 276,437 | | $ | 28,682 | | $ | 305,119 | | | | | | | | | | | | | Less: (1) | | | | | | | | | | | Baseball operating costs | | | 252,042 | | | — | | | | | Mixed-Use Development costs | | | — | | | 4,553 | | | | | Other segment items (2) | | | 30,125 | | | 3,488 | | | | | Segment Adjusted OIBDA | | | (5,730) | | | 20,641 | | $ | 14,911 | | | | | | | | | | | | | Reconciliation of Adjusted OIBDA | | | | | | | | | | | Corporate and other | | | | | | | | | (3,122) | | Stock-based compensation | | | | | | | | | (6,824) | | Depreciation and amortization | | | | | | | | | (23,508) | | Operating income (loss) | | | | | | | | $ | (18,543) | | Interest expense | | | | | | | | | (11,583) | | Share of earnings (losses) of affiliates, net | | | | | | | | | 14,755 | | Realized and unrealized gains (losses) on financial instruments, net | | | | | | 657 | | Other, net | | | | | | | | | 1,407 | | Earnings (loss) before income taxes | | | | | | | | $ | (13,307) | |
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. |
| (2) | Other segment items represent selling, general and administrative costs, excluding stock-based compensation expense and other insignificant items. |
| | | | | | | | | | | | | Three months ended | | | | June 30, 2025 | | | | amounts in thousands | | | | Baseball | | | Mixed-Use Development | | | Total | | | | | | | Revenue from external customers | | $ | 287,319 | | $ | 25,121 | | $ | 312,440 | | | | | | | | | | | | | Less: (1) | | | | | | | | | | | Baseball operating costs | | | 210,809 | | | — | | | | | Mixed-Use Development costs | | | — | | | 3,633 | | | | | Other segment items (2) | | | 24,463 | | | 3,922 | | | | | Segment Adjusted OIBDA | | | 52,047 | | | 17,566 | | $ | 69,613 | | | | | | | | | | | | | Reconciliation of Adjusted OIBDA | | | | | | | | | | | Corporate and other | | | | | | | | | (3,909) | | Stock-based compensation | | | | | | | | | (2,646) | | Depreciation and amortization | | | | | | | | | (21,271) | | Operating income (loss) | | | | | | | | $ | 41,787 | | Interest expense | | | | | | | | | (11,652) | | Share of earnings (losses) of affiliates, net | | | | | | | | | 10,613 | | Realized and unrealized gains (losses) on financial instruments, net | | | | | | (640) | | Other, net | | | | | | | | | 1,673 | | Earnings (loss) before income taxes | | | | | | | | $ | 41,781 | |
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. |
| (2) | Other segment items represent selling, general and administrative costs, excluding stock-based compensation expense and other insignificant items. |
| | | | | | | | | | | | | Six months ended | | | | June 30, 2026 | | | | amounts in thousands | | | | Baseball | | | Mixed-Use Development | | | Total | | | | | | | Revenue from external customers | | $ | 322,183 | | $ | 54,943 | | $ | 377,126 | | | | | | | | | | | | | Less: (1) | | | | | | | | | | | Baseball operating costs | | | 308,658 | | | — | | | | | Mixed-Use Development costs | | | — | | | 8,811 | | | | | Other segment items (2) | | | 51,588 | | | 7,895 | | | | | Segment Adjusted OIBDA | | | (38,063) | | | 38,237 | | $ | 174 | | | | | | | | | | | | | Reconciliation of Adjusted OIBDA | | | | | | | | | | | Corporate and other | | | | | | | | | (5,942) | | Stock-based compensation | | | | | | | | | (13,392) | | Depreciation and amortization | | | | | | | | | (40,634) | | Operating income (loss) | | | | | | | | $ | (59,794) | | Interest expense | | | | | | | | | (22,753) | | Share of earnings (losses) of affiliates, net | | | | | | | | | 14,435 | | Realized and unrealized gains (losses) on financial instruments, net | | | | | | 1,584 | | Other, net | | | | | | | | | 2,601 | | Earnings (loss) before income taxes | | | | | | | | $ | (63,927) | |
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. |
| (2) | Other segment items represent selling, general and administrative costs, excluding stock-based compensation expense and other insignificant items. |
| | | | | | | | | | | | | Six months ended | | | | June 30, 2025 | | | | amounts in thousands | | | | Baseball | | | Mixed-Use Development | | | Total | | | | | | | Revenue from external customers | | $ | 315,940 | | $ | 43,711 | | $ | 359,651 | | | | | | | | | | | | | Less: (1) | | | | | | | | | | | Baseball operating costs | | | 259,572 | | | — | | | | | Mixed-Use Development costs | | | — | | | 6,041 | | | | | Other segment items (2) | | | 43,921 | | | 7,217 | | | | | Segment Adjusted OIBDA | | | 12,447 | | | 30,453 | | $ | 42,900 | | | | | | | | | | | | | Reconciliation of Adjusted OIBDA | | | | | | | | | | | Corporate and other | | | | | | | | | (5,745) | | Stock-based compensation | | | | | | | | | (5,292) | | Depreciation and amortization | | | | | | | | | (34,528) | | Operating income (loss) | | | | | | | | $ | (2,665) | | Interest expense | | | | | | | | | (21,996) | | Share of earnings (losses) of affiliates, net | | | | | | | | | 10,935 | | Realized and unrealized gains (losses) on financial instruments, net | | | | | | (1,277) | | Other, net | | | | | | | | | 2,886 | | Earnings (loss) before income taxes | | | | | | | | $ | (12,117) | |
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. |
| (2) | Other segment items represent selling, general and administrative costs, excluding stock-based compensation expense and other insignificant items. |
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