In an era where sports franchises have increased in value exponentially, the Atlanta Braves still stand out. Thanks to a series of successful seasons including the 2021 World Series title and a hosting of real estate development around Truist Park, the Braves are easily a top 10 team by value across MLB and they just keep moving up the rankings.
In terms of long-term valuation, Atlanta has a lot of things going for them. In addition to having a young core in place for years to come, the Braves' revenues just keep going up year over year thanks to the team's successes and revenue from The Battery with little sign of going down. If all of the injuries last year didn't put a dent in the team's financial growth, one wonders what the numbers would look like with another deep postseason run.
However, it seems like not everyone is bullish on the Braves continuing to grow at this rate. According to recent reports, there has been an increase in short selling activity with the Braves stock which seems to indicate that there are at least a few investors that think that Atlanta's stock price is higher than it should be.
The Braves are a model of success, with 7 straight postseason appearances, a 2021 World Series win, and a revenue surge from $250M in 2014 to $641M in 2023.
— Sports Business Journal (@SBJ) November 22, 2024
The Battery Atlanta generates $50M+ annually, fueling their continued growth and fan experience. https://t.co/HjroCEwvMo
Short-selling of Braves stock seems to indicate some investors are betting against Atlanta
The most pessimistic angle here is that there are investors betting a not small amount of money that they Braves will falter this season. Short-selling is essentially a bet that a stock price will fall and with a marked increase in short-selling the Braves stock, there seems to be at least some people that think the Braves' are overvalued by the market enough to try and make a few bucks betting on the price falling.
The obvious reason for making such a bet is if said investors thought the Braves would struggle on the field in 2025. While last season was a disaster when it came to injuries to be sure, but the idea that Atlanta won't be among the favorites to win it all at the end of the season is a tough sell especially with so many stars getting healthy.
The more likely explanation is a bit more boring. The Braves' revenues and financial projections have been shooting through the roof in recent years. The more likely explanation for the increase in short sells is that investors think that there is a limit to how team can grow it's revenues especially with all of the long-term uncertainty regarding the Braves' TV distribution. Atlanta is likely to be a good baseball team, but exactly how much they can keep growing revenues is fair to question.
If the Braves make a deep postseason run and the All-Star Game puts The Battery even more on the map as a destination, the short-sellers are probably going to be disappointed in 2025. However, if it is another early playoff exit and the Braves are not well-represented at the ASG, it wouldn't be all that shocking to see the gamblers end up being right.