How Has BATRA Performed Since the Atlanta Braves Went Public?
The Braves completed their split-off from Liberty Media on July 19th. An intriguing asset and claim toward becoming a "part owner" of the 2021 World Series Champions. Yet, BATRA is a fun addition to any portfolio, how has it performed since its inception?
From their initial press release, Atlanta Braves Holdings announced their completion of splitting off from Liberty Media under the NASDAQ ticker "BATRA" and BATRAK. Over the Counter markets will be listed as "BATRB", giving the team its status as an independent, asset-backed corporation.
BATRA has been trading since 2016, yet the split-off remains an interesting move, becoming the first team in Major League Baseball to officially go public. The separation will be intriguing for fans to stake claim as "part owners" of what looks to be the best team in baseball. However, the historical performance and consistency of the team show that it can be an exciting financial move to diversify any portfolio.
Historical Performance
Going public was a big deal for baseball, as it gave insight into the actual profitability of a professional organization. BATRA has been trading on the NASDAQ since April of 2016. Since then, the performance has steadily increased except for its opening day and March 2020, during the Covid.
On opening day, Liberty Media was ambitious, as the stock was listed at $36 and would end up closing at $19.95. Nine days later, it would hit its pre-Covid low of $14.30. Not Ideal if you were a first mover, and it seemed many in the market were looking to take advantage of BATRA's niche. However, two trends started to take place within about a month of the April 18th opening day.
On June 16th, 2016, the stock would hit its all-time low, at $14.66. Atlanta was 20 games below .500, yet they beat an equally bad Cincinnati Reds. It was the last season at the Ted, and while the Braves were by far the worst in the NL East, the change in front-office and becoming young players were starting to come to fruition. The Battery was about completed, creating a new entertainment hub in the Cobb County suburbs.
While opinions vary quite significantly regarding the move, the stock's performance started to shoot up approaching the 2017 season. As the growth started to pick up (and fast), people were questioning how a major league team could contribute to revenue growth in a tangible way, over a sustained period of time. The 2017 season saw the first real improvement moving up to third place in the division.
Atlanta's performance on the diamond would take off starting in 2018. The Braves won their first NL East title in five years and have since gone on to win what will be six division titles in a row. On January 9th, 2018, Atlanta Braves Holdings closed at $21.64, their yearly low. Moving the season's final day, after a tough series with the Dodgers, BATRA finished at $26.36.
The 21.81% increase over the 2018 season somewhat correlated to the 26.34% increase in win percentage compared to the previous year. While winning did not drive the stock's performance entirely, it generated attendance, merchandise, concessions, and general buzz around the overall team.
2018 to 2020 would increase the performance of the team and the stock. December 19, 2019, saw a new high (disregarding the initial open) of $30.00. Nevertheless, Covid took over the world, erasing gains in the span of a few months. All major leagues saw a halt in play, and when the players did eventually return, fans had to wait another year or two, depending on their location.
March 16, 2020, marked the historical low, closing at $13.75. The overall market, especially regarding professional sports, was not well positioned for the sudden changes which was reflected in BATRA's decline of 54.17%.
When buying stocks, they tend to go up in escalators and fall in elevators. If investors bought into the Braves holdings after March 2020, they would have seen a relatively stable accent. Atlanta Braves Holdings started 2021 on January 4th, with a high of $26.03, and generally increased towards the transition on July 19th, 2023. The day before Liberty Media split off its holdings of the Braves, BATRA closed at $43.37, a 215.42% increase in the span of three years.
Arizona Diamondbacks v Atlanta Braves / Matthew Grimes Jr./Atlanta Braves/GettyImages
Since the transition to a Corporation
The split was an ambitious move for the Braves, ultimately becoming separate from their parent ownership group. The move will allow them more flexibility with their financial decisions regarding player personnel and suburban development. Derek Schiller spoke during the opening of the NASDAQ, on behalf of the fan experience, valuation, and the future of Atlanta's business operations.
The valuation for the official IPO was on the multiples of revenue combining a variable estimate of previous team sales. Where the Braves differ is the two million square feet of mixed-use development, which is not entirely tied into their projections. The thought is that the team will contribute to most of the revenue growth through team activity, with the addition of real estate diversifying their income streams.
An interesting example is the building of the Truist Securities building, which will have a trading floor, over 1,000 employees, and monitor capital growth for a wide range of sectors. The continuous improvement of the Battery will increase an already thriving entertainment district.
“We're very proud to now convert what was a tracking stock into a full asset-backed equity and officially trade on Nasdaq,” Atlanta Braves CEO Derek Schiller says on going public under the ticker $BATRA. “It’s given all of us a great deal of pride." pic.twitter.com/s9fAc9njUo
Equity in the Braves should continue to increase, yet it can potentially benefit fans regarding a team sale. According to Forbes, MLB team valuations are up 12% over 2023. The Braves are currently the eighth most valuable at 2.6 Billion. Since 2019, team sales have been substantially increasing. Every professional sports team has sold for over $2 billion, including Steve Cohen buying the Mets for 2.4 Billion in 2020. The last three organizations all sold for over $4 billion. If this is eventually a ploy to receive a more intriguing offer, it is wise to have potential ownership groups overpay for the unheard-of traction gaining in the sports industry.
After July 19th, the price shot up to $47.36 but has steadily declined toward the low $40 mark. The decline is understandable as there is some correlation with media/fan attention. A low $40 price point does seem fair, and we can expect it to increase as the Braves approach playoffs. For people looking to purchase the stock, it will remain a novelty for its entire existence.
Ownership in a professional franchise is one of the most prominent examples of buying into a scarce asset. Interestingly, with investors looking to enter the sports business, it may be a way for shareholders to cash out on a potential future buyout.
When buying the Braves stock, even with no sale on the horizon, Braves shareholders can have fun staking claims in minority ownership. Furthermore, they can claim their investment helps build the metropolitan Atlanta area, while enjoying the amenities the Battery and a world-class team has to offer.
