Atlanta Braves 2019 revenues fund higher payroll
By Fred Owens
Atlanta Braves deal with Cobb County – a winner
The wailing and gnashing of teeth over the way the Atlanta Braves abused Cobb County taxpayers is a thing of the past.
Reality started to set in last September when a study conducted by Georgia Tech’s Center for Economic Development Research evaluated the project’s impact.
". . .with just under $19 million in annual net fiscal impact, the baseball-centric, live-work-play megaplex appears to be doing big things for Cobb County."
Georgia Tech’s research projected just under $15M going to local schools, and about $4M going to local government every year for the next 20 years.
The study also found that property values jumped by approximately $4.5 billion since the Atlanta Braves and Cobb County announced the project in 2013. Sharon Mason, president, and CEO of the Cobb County Chamber of Commerce, said the project delivered better than expected.
"The Braves have delivered on their promise to reshape the economic destiny of Cobb County, and. . .managed to create an entirely new, innovative way for municipalities and local governments to partner with sports franchises. . . This report clearly and definitively shows. . . the public and private investments that led to SunTrust Park and The Battery Atlanta are paying off for the community.”"
Cobb County releases its 2019 numbers
Last week East Cobb Commissioner Bob Ott said the deal looks better each year.
". . .the project is working. It’s still delivering what the Braves promised to the public when they first proposed it."
In 2017, Cobb County used $8.1M to pay their annual debt obligation; in 2109, they paid $4.2M.
"it would have been only $2.5 million, Ott said, had the county not made the decision to add the cost of public safety at the stadium and money for Cobb Travel and Tourism into this year’s financial figures."
Ott expects the amount paid to drop to zero, something no one expected when the plan first surfaced.
The reason for his optimism stems from increased property tax revenues and money by taxes on hotels and car rentals paid by visitors. In 2019, the County received $4.5M more in revenue from those taxes than projected five years ago, up $100K from 2018
- Sales, liquor, occupancy, and hotel taxes to $19.1 million in 2019, up nearly $2 million from 2018
- Cobb School District took in about $2.74 million in sales tax revenue in 2019, up from $2.48M in 2018
- Georgia took in $11.8M up $1M from 2016
The last linked post shows the Atlanta Braves’ contribution to stadium costs.
| Annual require Atlanta Braves Contribution | $ | 6,100,000 |
| Property Tax Revenue paid by the Braves | ||
| General Fund | $ | 1,868,967 |
| Cumberland Special Service District | $ | 541,241 |
| Total Brave Revenues Applied to County Stadium Costs | $ | 8,510,208 |
That’s a wrap
The Atlanta Braves open the 2020 season with an active roster payroll estimated at $150,564,375 (Spotrac), or $147,439,375 (COTS) and my personal spreadsheet, or $156,762,875 (Fangraphs). Fangraphs is counting the buyouts of Nick Markakis and Tyler Flowers as 2020 money when we know the Braves paid those out of 2019 funds along with the buyouts of Bill Hamilton and Julio Teheran.
Whichever amount you land on, the Braves broke out their financial flexibility. This year’s payroll has the highest face value, and is equivalent to the previous high in team history, in 2003 player salaries set the record at $108M, an inflation-adjusted $151,417,761 today.
The Braves and LMC found a way to have a mutually beneficial relationship with the County and increase revenues used in day-to-day baseball operations. The Rangers followed that model to some extent in Arlington and the new Oakland Fantasy ballpark is based on it as well.
dark. Next. Tyler who?
If imitation is the sincerest form of flattery, the Braves are blushing.