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?

The Battery in Full Action
The Battery in Full Action / Matthew Grimes Jr./Atlanta Braves/GettyImages
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Terry McGuirk, Alex Anthopoulos, Derek Schiller
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.

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.