G.research, LLC April 13, 2017 One Corporate Center Rye, NY 10580-1422 Tel (914) 921-5150 www.gabellisecurities.com

Braves Group (BATRA - $23.51 - NASDAQ) America’s Most Profitable Pastime? - Buy Year EBITDA EV/EBITDA PMV 2018P $61M 22.6x $32 Dividend: None Current Return: Nil 2017P 9 M NM 30 A Shares 10.2 million 2016E (20) NM - B Shares 1.0 " 2015A 3 NM - K Shares 47.1 " 52-Week Range: $33.21 - $13.13

COMPANY OVERVIEW The Atlanta Braves baseball team was founded in 1871 and is the oldest continuously operating professional sports franchise in America. Liberty Media Corporation recapitalized the Braves Group as a tracking stock in April 2016 along with Liberty SiriusXM and Formula One Group (previously Liberty Media). Assets include the Atlanta Braves Major League Baseball club, the Atlanta Braves' stadium and the Battery real estate project. The Braves moved to the new 41.5K seat SunTrust Park, Cobb County from Atlanta in February 2017. The Battery Atlanta is a mixed use development with residential and commercial property which feeds off the stadium on 82 acres and should be complete at the end of 2017. We calculate a PMV of $30 per share in 2017.

Reason for Comment The Braves have lost the moniker America’s Team II (earned while broadcast nationally on WTBS) and six of seven games so far this season but have nevertheless become increasingly valuable. Forbes updated 2016 baseball valuations with the average team increasing 19% y/y to $1.54B and the Braves 28% to $1.5B.

We are increasing our 2017 PMV to $30 per share from $29. Forbes uses 2016 financials and the revenues/expenses of stadiums are included but not the value of the real estate. Our 2017 Braves team valuation is $1.66B ($28/share – about 5x revenue), about 11% higher than Forbes 2016 valuation. Catalysts include:

1: Forbes highlights that Guggenheim-owned LA Dodgers, the second-most valuable team after the NY Yankees, and now worth $2.75B (up 10% y/y) has hired an investment banker to sell a 10-15% stake. A public market valuation of one of the only loss making teams in the MLB might provide a relatively attractive comp.

2: Miami Marlins valuation increased 39% to $940M - still lower than the $1.6B (about 8x revenue) speculated “ask.”

3: The league’s thirty teams 2016 revenues increased 7.5% to $9.0B but player costs (57% of operating expense) increased 3.5% to $4.56B suggesting a relatively well-managed business. ESPN bought one-third of BAMTech (BAM/Baseball Advanced Media’s streaming business) last year for $1B but founder Bob Bowman is staying at the MLB, suggesting future imaginative plays are possible. Forbes values the MLB at $12B. We value the Braves approximate 3% at $225M ($4/share) as a hidden asset, a discount to the full $450M.

4: Liberty Interactive Corporation’s tracking stock Liberty Ventures proposed acquisition of General Communications enables a tax efficient separation of its tracking stocks QVC and Liberty Ventures and highlights Liberty’s management team’s ability to reduce and simplify complicated structures and reduce tracking stock discounts. This move should lower investor concerns that Liberty Media Corporation faces limited hard spin options and a potential sale of the Braves.

5: The Braves home opening game is on Friday at the SunTrust Stadium, which is also hosting Liberty’s Shareholder meeting (historically held at the Denver HQ) on May 24 and should highlight the scale of the real estate operation.

Table 1 Liberty Braves Group Earnings Model 2012-2020P (in millions, except per share data) '15A-'20P FYE 12/31 2012 2013 2014 2015 2016 2017P 2018P 2019P 2020P CAGR Revenue $225 $260 $250 $243 $262 $371 $437 $451 $459 13.6% % growth 15.6% (3.8%) (2.8%) 8.0% 41.4% 17.7% 3.2% 1.9% EBITDA 22 42 (6) 3 (20) 9 61 68 78 93.1 % margin 9.8% 16.2% -2.4% 1.2% -7.5% 2.3% 14.0% 15.1% 17.0% TEV / EBITDA 63.0x 33.0x -231.1x 478.1x NM 159.5x 22.6x 20.4x 17.8x Capex $0 $0 $0 $0 ($360) ($256) ($21) ($21) ($21) Net debt 0 0 0 0 0 602 573 537 490 PMV $30 $32 $34 $36 Source: Public data and Gabelli & Company estimates -Please Refer To Important Disclosures On The Last Page Of This Report-

Table 2 Liberty Braves Group Private Market Value Analysis 2017-2020P (in millions, except per share data) FYE 12/31 2017P 2018P 2019P 2020P

Atlanta Braves Revenue $326 $337 $347 $353 Valuation Multiple 5.0x 5.0x 5.0x 5.0x Segment Value 1,632 1,681 1,737 1,767 Plus: Net Cash (Debt) (330) (319) (304) (282) Equity Private Market value 1,302 1,362 1,433 1,484

Property - The Battery Atlanta Segment Value 608 639 671 704 Plus: Net Cash (Debt) (308) (289) (268) (244) less Minority (68) (71) (75) (79) Equity Private Market value 232 278 327 381

Corporate EBITDA (8) (8) (8) (9) Valuation Multiple 5.0x 5.0x 5.0x 5.0x Segment Value (40) (41) (42) (44)

Total Private Market Value $1,494 $1,598 $1,718 $1,822 Plus: Net Cash (Debt) 36 36 36 36 Less: Options Payments (16) (17) (16) (18) Plus Hidden Assets 225 243 262 283 Equity Private Market Value 1,739 1,860 2,000 2,123

Shares Outstanding (year-end) 59 59 59 59 PMV per share $30 $32 $34 $36 Current Market - Discount to PMV 20.5% 25.7% 30.9% 34.9% Source: Gabelli & Company estimates

Other Companies Mentioned: Formula One Group (FWONA - NASDAQ) Liberty Ventures Group (LVNTA - NASDAQ) General Communications (GNCMA - " ) Liberty Interactive (QVCA - " ) Liberty Sirius XM (LSXMA - " ) Sun Trust Bank (STI - NYSE) I, John Tinker, the Research Analyst who prepared this report, hereby certify that the views expressed in this report accurately reflect the analyst’s personal views about the subject companies and their securities. The Research Analyst has not been, is not and will not be receiving direct or indirect compensation for expressing the specific recommendation or view in this report.

John Tinker (914) 921- 8348 Gabelli & Company 2017 Important Disclosures

ONE CORPORATE CENTER RYE, NY 10580 GABELLI & COMPANY TEL (914) 921-5130 FAX (914) 921-5098 Gabelli & Company is the marketing name for the registered broker dealer G.research, LLC, which was formerly known as G.research, Inc., Gabelli & Company ("we or "us") attempts to provide timely, value-added insights into companies or industry dynamics for institutional investors. Our research reports generally contain a recommendation of "buy," "hold," "sell" or "non-rated.” We do not undertake to "upgrade" or "downgrade" ratings after publishing a report. We currently have reports on 609 companies, of which 48%, 35%, 3% and 14% have a recommendation of buy, hold, sell or non-rated, respectively. The percentage of companies so rated for which we provided investment banking services within the past 12 months is 0%, 0%, 0% and less than 1%.

Ratings Analysts’ ratings are largely (but not always) determined by our “private market value,” or PMV methodology. Our basic goal is to understand in absolute terms what a rational, strategic buyer would pay for an asset in an open, arms-length transaction. At the same time, analysts also look for underlying catalysts that could encourage those private market values to surface. A Buy rated stock is one that in our view is trading at a meaningful discount to our estimated PMV. We could expect a more modest private market value to increase at an accelerated pace, the discount of the public stock price to PMV to narrow through the emergence of a catalyst, or some combination of the two to occur. A Hold is a stock that may be trading at or near our estimated private market value. We may not anticipate a large increase in the PMV, or see some other factors at work. A Sell is a stock that may be trading at or above our estimated PMV. There may be little upside to the value, or limited opportunity to realize the value. Economic or sector risk could also be increasing.

We prepared this report as a matter of general information. We do not intend for this report to be a complete description of any security or company and it is not an offer or solicitation to buy or sell any security. All facts and statistics are from sources we believe to be reliable, but we do not guarantee their accuracy. We do not undertake to advise you of changes in our opinion or information. Unless otherwise noted, all stock prices reflect the closing price on the business day immediately prior to the date of this report. We do not use "price targets" predicting future stock performance. We do refer to "private market value" or PMV, which is the price that we believe an informed buyer would pay to acquire 100% of a company. There is no assurance that there are any willing buyers of a company at this price and we do not intend to suggest that any acquisition is likely. Additional information is available on request.

As of March 31, 2017, our affiliates beneficially own on behalf of their investment advisory clients or otherwise approximately 3.39% of Liberty Braves Group A and less than 1% of all other companies mentioned in this report. Because the portfolio managers at our affiliates make individual investment decisions with respect to the client accounts they manage, these accounts may have transactions inconsistent with the recommendations in this report. These portfolio managers may know the substance of our research reports prior to their publication as a result of joint participation in research meetings or otherwise. No part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. In addition, the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendation or view in this report. The analyst, who wrote this report, or members of his household, owns 8,700 shares of Liberty Sirius, 5,991 shares of Liberty Ventures, 2,175 Formula One Group and 870 shares of the Braves Group.

- 2 -