Liberty Media split off the Atlanta Braves tracking stock into the independent Atlanta Braves Holdings effective July 20, 2023 in a transaction meant to be tax-free holders of the 3 classes Atlanta Braves tracking stock. As part of the split-off some Atlanta Braves Holdings stock was spun off from Liberty Media Formula One tracking stock. Atlanta Braves Holdings began normal trading on July 20, 2023. Liberty Media Formula One tracking stock shareholders (FWONA, FWONK) received 0.028961 shares of Atlanta Braves Holdings (BATRA, BATRK) for each share of Liberty Media Formula One tracking stock owned. FWONA owners received BATRA shares while FWONK shareholders received BATRK shares

Resolution:

This action is a simple spinoff transaction in the accounting software. It is structured to be a non-taxable event for Liberty Media Formula One tracking stock shareholders. The cost basis allocation information is calculated from the average FWONK of the opening and closing prices of BATRK and FWONK on the effective date of the spinoff. This method to determine fair market value of the post spinoff companies is commonly used. IRS Form 8937 was not found on the FWONK and BATRK websites before these instructions were written.

NOTE:

The cost basis allocation is dependent on the prices used for both Atlanta Braves Holdings and Liberty Media Formula One Tracking stock in the cost basis allocation calculations. In our experience brokers tend to use the prices found in the guidance companies post on their websites including IRS form 8937. If available our instructions will use the guidance in form 8937. If your broker does not use that guidance, or form 8937 is not publicly available, the cost basis of the companies involved as recorded in your accounting records and in your broker’s records will not  match. This is not cause for concern. This is just due to the inexact nature of the tax code in this regard. Partnership tax returns have specific areas to reconcile these usually small differences. ICLUBcentral tax printer software automatically fills in these adjustments in the normal operation of the software using the data imported from your accounting records and that you enter from your 1099.  

Instructions for both FWONK and FWONA shareholders are given below.

 The Spinoff Entry

Go to Accounting > Securities > Record spinoff of securities in myICLUB.com. If you are unfamiliar with spinoff transactions you, can you can get help at this URL: http://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here is the information you need to complete the spinoff if you held FWONK shares.

• Date: 7/20/2023
• Select Parent Security (or Parent Company) : Liberty Media Formula One (FWONK)
• Remaining Basis Percentage: 98.38
• Cash received:  See your broker statement for cash-in-lieu received
• Spinoff  Security (or Symbol of New Company) : Atlanta Braves Holdings (BATRK)
•  Shares received : 0.028961 x (# of FWONK shares owned)   (Remember to include fractional shares.)
• For example, if you owned 100 FWONK shares, you should receive 0.028691 x 100 = 2.8961 BATRK shares.
• Price Per Share : 41.065 (Average of opening and closing BATRK prices on 7/20/2023)            

Save the transaction and the spinoff has been entered.

Here is the information you need to complete the spinoff if you held FWONA shares.

• Date: 7/20/2023
• Select Parent Security (or Parent Company) : Liberty Media Formula One (FWONA)
• Remaining Basis Percentage: 98.03
• Cash received:  See your broker statement for cash-in-lieu received
• Spinoff  Security (or Symbol of New Company) : Atlanta Braves Holdings (BATRA)
•  Shares received : 0.28961 x (# of FWONA shares owned)   (Remember to include fractional shares.)
• For example, if you owned 100 FWONA shares, you should receive 0.028691 x 100 = 2.8961 BATRA shares.
• Price Per Share : 45.30   (Average of opening and closing BATRA prices on 7/20/2023)            

Save the transaction and the spinoff has been entered.