четверг, 13 сентября 2012 г.

SELLING SPORTS\ AOL TIME WARNER LATEST MEDIA GIANT SHOPPING ITS PRO TEAMS.(Business) - The Cincinnati Post (Cincinnati, OH)

Byline: Harry R. Weber Associated Press

ATLANTA -- For media conglomerates, owning a sports franchise can help build interest in other divisions, particularly fledgling cable channels. Once that goals is achieved, there's not much reason to hold on to the teams.

Such is the case, analysts say, for AOL Time Warner, the latest industry giant to seek a buyer for its sports teams. The company says it wants to sell the Atlanta Braves, Hawks and Thrashers to help pay down $25.8 billion in debt.

'Owning a team is a very effective way to gain ratings, gain coverage, but I think it's mission accomplished,' said Merrill Lynch entertainment analyst Jennifer Reif Cohen.

A handful of individuals and investment groups have expressed interest in buying the teams during the past two months. The interest has been described as serious, but there is no specific timetable for a deal, according to people familiar with the discussions.

The company won't reveal the names of those interested in the teams or its asking price, but analysts say the teams together are worth about $750 million. Selling them individually could raise more cash, analysts say, and the price tag could go even higher if the buyer takes over AOL Time Warner's operating agreements for Philips Arena and Turner Field.

Among those mentioned as possible suitors are the teams' former owner, Ted Turner, and former New York sports executive David Checketts.

The possible sale of the Atlanta teams is part of a trend at large media and entertainment companies. Rupert Murdoch's News Corp. has expressed interest in selling the Los Angeles Dodgers and the Walt Disney Co., which owns ABC, has said it wants to sell the Anaheim Angels and Mighty Ducks.

'They're properties. They're businesses,' said Tom Wolzien, a media analyst at Sanford C. Bernstein & Co. 'Either it's core to your operations or it provides you with some strategic rationale or it's a good financial investment. As the other needs get resolved, then it's something that you sort of move on from.'

In AOL Time Warner's case, owning the Atlanta sports teams has helped it boost its cable stations that carry many of the teams' games, including TNT, TBS and Turner South. Fewer local games have appeared on the channels in the last couple of years, and the stations carry more programs such as popular dramatic shows and movies.

'When Ted Turner bought the teams originally, the reason was they provided content for the then fledgling Superstation TBS,' Wolzien said. 'He was basically in a position where he bought teams that helped fill out his television schedule. As the needs of the cable networks change, the reason to own the sports teams are not as compelling.'

Analysts say many sports teams are not as profitable these days because of higher player salaries and less television revenue to go around. The Braves have one of the highest payrolls in baseball -- it is expected to be about $91.2 million this season.

The Dodgers have lost nearly $100 million over the last two years, and, despite the fact that Anaheim won the World Series last year, Disney loses $16 million annually on the Angels and $9 million on the Mighty Ducks, analysts say.

Text of fax box follows:

Plan to trim debt

* Selling its sports teams is part of AOL Time Warner's plan to return to profitability.

* AOL also is considering selling other noncore assets, including its book division. Analysts say the music division also is expendable.

* The company wants to reduce its debt to $20 billion by the end of 2004.

* The company reported a massive $44.9 billion loss in the fourth quarter.

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Photo

TANNEN MAURY/ASSOCIATED PRESS

Ted Turner, left, former owner of the Atlanta Braves, celebrates the '95 World Series win with Tom Glavine.