As MLB's only publicly traded team, the Atlanta Braves are basically THE window into team finances in the game of baseball. Like any other public company, they must give investors regular updates on the health of the business, which provides experts and fans with a better understanding of both how revenues have grown over the years as well as the various revenue sources the Braves are cultivating. In the context of the impending MLB lockout, that level of transparency is a double-edged sword.
On one hand, experts and fans alike tend to approve of the Braves' growing revenues. Aside from the usual "number-go-up good" reactions, Atlanta's success as a publicly traded company has vindicated its strategy with the organization’s real estate holdings around Truist Park, in addition to the normal revenues that come with running a baseball team. However, that same data has been used to help justify the positions of both sides of what is very likely to be a contentious labor fight this offseason.
So, when the Braves released their latest revenue numbers last week, it was inevitable the lockout would come up on the earnings call. However, what was very curious was that Braves chairman Terry McGuirk not only didn't delve much into the potential work stoppage or MLB's position on a salary cap, but he actively avoided talking about it at all.
Braves chairman Terry McGuirk had no interest whatsoever in discussing the impending lockout and CBA negotiations
Given that a potential lockout would have real impacts on the Braves' revenues going forward, McGuirk couldn't COMPLETELY ignore it. However, at one point on the call, McGuirk simply referred to commissioner Rob Manfred's updated proposal for a salary cap and floor and then said, "Given that these discussions are obviously very fluid and ongoing…I will not be commenting on them.”
It is a little strange that a high-ranking team official for any club, let alone the Braves, wouldn't push a little harder for the league's proposals and argue for changes in the context of Atlanta's revenues in the coming years. However, when asked multiple times about the possible labor stoppage, McGuirk largely passed on those opportunities beyond some very brief comments regarding the league's proposal and the state of competitive balance that sounded like a politician who wanted to be talking about anything else.
It seems as though McGuirk is acutely aware that any comments he makes on an earnings call could be used as evidence by either side during CBA negotiations. It wasn't an accident that the team used some accounting tricks to both claim an operating income loss (which almost certainly helps owners' case for changes) as well as remaining profitable at the same time when looking at adjusted operating income before depreciation and amortization (which makes investors happy).
We can expect the team to do more talking out of both sides of their mouths in the coming weeks and months. The less information that teams can put out there about their profits so that they can push their agenda in labor talks, the better. However, the Braves also have a legal responsibility to investors and a duty to try and talk the team up so that their stock continues to go up. In short, we have officially reached the point where no one should believe anything either side says until this lockout mess is behind us.
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