Atlanta Braves Holdings, Inc. Income Taxes Disclosure
(9)Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return. Prior to the Split-Off, the Company was included in the federal consolidated income tax returns of Liberty. The tax provision included in these consolidated financial statements has been prepared on a stand-alone basis, as if the Company was not part of the consolidated Liberty tax group.
Income tax benefit (expense) consists of:
Years ended December 31, |
| |||||||
2025 | 2024 | 2023 |
| |||||
amounts in thousands |
| |||||||
Current: | | | ||||||
Federal | $ | (1,255) |
| (4,182) |
| (3,689) | ||
State |
| (42) |
| (124) |
| (14) | ||
Foreign | (312) | (309) | (305) | |||||
| (1,609) |
| (4,615) |
| (4,008) | |||
Deferred: |
|
|
| |||||
Federal |
| 3,400 |
| 6,147 |
| 7,887 | ||
State |
| (960) |
| 3,141 |
| (15) | ||
Foreign |
| — |
| — |
| — | ||
2,440 |
| 9,288 |
| 7,872 | ||||
Income tax benefit (expense) | $ | 831 | 4,673 | 3,864 | ||||
Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal statutory rate of 21% as a result of the following:
Years ended December 31, |
| ||||||||||
2025 | 2024 | 2023 |
| ||||||||
amounts in thousands |
| ||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||
Computed expected U.S. federal statutory tax benefit (expense) | $ | 5,064 | 21.0 | % | 7,548 | 21.0 | % | 27,123 | 21.0 | % | |
State tax benefit (expense), net of federal benefit (expense)(1) | (993) | (4.1) |
| 2,383 | 6.6 |
| (23) | — | |||
Foreign Tax Effects | (247) | (1.0) | (244) | (0.7) | (241) | (0.2) | |||||
Tax Credits | 189 | 0.8 | (235) | (0.7) | (259) | (0.2) | |||||
Nontaxable or Nondeductible Items | |||||||||||
Intergroup interest | — | — | — | — | (17,467) | (13.5) | |||||
Executive compensation | (6,497) | (26.9) | (4,610) | (12.8) | (1,966) | (1.5) | |||||
Nondeductible transaction costs | — | — | — | — | (2,507) | (1.9) | |||||
Stock-based compensation | 2,221 | 9.2 |
| 778 | 2.2 |
| 561 | 0.4 | |||
Meals and entertainment | (1,336) | (5.5) |
| (1,112) | (3.1) |
| (1,066) | (0.8) | |||
Other | (75) | (0.3) | 165 | 0.5 |
| (291) | (0.2) | ||||
Other adjustments | |||||||||||
Accrued compensation - personnel expenses | 1,818 | 7.5 | — | — | — | — | |||||
Accrued compensation - pension | 838 | 3.5 | — | — | — | — | |||||
Intangible assets | 290 | 1.2 | |||||||||
Other | (441) | (1.8) | — | — | — | — | |||||
Income tax benefit (expense) | $ | 831 | 3.4 | % | 4,673 | 13.0 | % | 3,864 | 3.0 | % | |
| (1) | State taxes in Georgia made up the majority (greater than 50 percent) of the tax effect in this category. |
During the year ended December 31, 2025, the Company recognized a tax benefit less than the expected federal tax rate of 21% due primarily to executive compensation that is not deductible for tax purposes.
During the year ended December 31, 2024, the Company recognized a tax benefit less than the expected federal tax rate of 21% due primarily to executive compensation that is not deductible for tax purposes, partially offset by the effect of state income taxes.
During the year ended December 31, 2023, the Company recognized a tax benefit less than the expected federal tax rate of 21% due primarily to intergroup interest losses that are not deductible for tax purposes.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
December 31, |
| |||||
2025 | | 2024 |
| |||
amounts in thousands |
| |||||
Deferred tax assets: | ||||||
Finance lease obligation | $ | 25,061 |
| 26,741 | ||
Interest, tax loss, and credit carryforwards |
| 18,267 |
| 22,153 | ||
Stock-based compensation |
| 1,783 |
| 1,821 | ||
Capitalized R&D |
| 88 |
| 2,647 | ||
Deferred revenue |
| 1,301 |
| — | ||
Other | 9,874 | 5,782 | ||||
Total deferred tax assets |
| 56,374 |
| 59,144 | ||
Valuation allowance |
| (699) |
| — | ||
Deferred tax assets, net of valuation allowance |
| 55,675 |
| 59,144 | ||
Deferred tax liabilities: |
| |
| | ||
Property and equipment, net |
| 42,091 |
| 45,641 | ||
Intangible assets |
| 38,387 |
| 33,153 | ||
Investments |
| 11,765 |
| 8,081 | ||
Contract assets |
| — |
| 10,797 | ||
Accrued compensation | 3,230 | 3,678 | ||||
Other |
| 1,484 |
| 1,310 | ||
Total deferred tax liabilities |
| 96,957 |
| 102,660 | ||
Net deferred tax liabilities | $ | (41,282) |
| (43,516) | ||
At December 31, 2025, the Company had a deferred tax asset of $18.3 million for federal and state net operating losses (“NOLs”) and federal and state interest expense carryforwards. The Company has $1.6 million of federal and $3.9 million of state NOLs, $11.7 million of interest expense that may be carried forward indefinitely and $0.9 million of state NOLs that will expire on various dates through 2044. These carryforwards are expected to be utilized in future periods, with the exception of certain jurisdictions where the Company concluded that it is not more likely than not to be able to utilize and, as such, a valuation allowance should be recorded. The valuation allowance for these carryforwards was $0.7 million for the year ended December 31, 2025.
As of December 31, 2025, 2024 and 2023, no unrecognized tax benefits have been recorded. As of December 31, 2025, Liberty’s tax years prior to 2022 are closed for federal income tax purposes. Liberty’s 2022 tax year has been audited by the Internal Revenue Service (the “IRS”) and its 2023 tax year is currently under examination by the IRS. The Company’s 2023 tax year has not been audited by the IRS. The IRS is reviewing the Company’s 2024 tax year as part of the IRS’s compliance assurance process audit program. Various states are currently examining Liberty’s prior years’ state income tax returns. The Company does not expect the ultimate disposition of these audits to have a material adverse effect on the Company’s financial position or results of operations. The Company is not under audit in any state or local jurisdiction.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.