Business Overview and History
Atlanta Braves Holdings, Inc. (BATRA) is the parent company of the beloved Atlanta Braves, one of the most storied franchises in Major League Baseball (MLB). With a history dating back to 1871, the Braves boast an impressive legacy of success, including nine National League pennants and three World Series championships. As the Braves continue to build on their rich heritage, the company's multifaceted business model and strategic investments position it for sustained growth in the years ahead.
Atlanta Braves Holdings, Inc. is primarily comprised of its wholly-owned subsidiary, Braves Holdings, LLC, which owns and operates the Atlanta Braves Major League Baseball Club (ANLBC) and the team's home stadium, Truist Park. The company's business operations are divided into two reportable segments: Baseball and Mixed-Use Development.
The Baseball segment includes the Braves' baseball franchise and Truist Park, generating revenue from ticket sales, concessions, local broadcasting rights, advertising sponsorships, suites and premium seat fees, retail and licensing, and shared MLB revenue streams. The team's on-field success has been a key driver of the Baseball segment's performance, with the Braves winning the World Series in 2021 and capturing division titles in 2022 and 2023.
The Mixed-Use Development segment encompasses the company's investment in The Battery Atlanta, a 2.25 million square-foot mixed-use complex surrounding Truist Park that features retail, office, hotel, and entertainment offerings. This development has become a year-round destination, generating revenue from office and retail rental income, parking, and advertising sponsorships.
The Braves' rich history dates back to 1871 when the franchise was founded as the Boston Red Stockings, one of the nine charter members of the National Association of Professional Baseball Players, the first professional baseball league. The franchise is the only one of today's 30 Major League Baseball franchises to have fielded a team in every season of professional-league play since its onset in 1871.
Throughout its history, the franchise has achieved remarkable success. As the Boston Braves, the team won six of the first eight pennants in professional baseball history and three more league titles in the 1890s. They also secured two National League pennants in 1914 and 1948, winning the World Series in 1914. After moving to Milwaukee in 1953, the Braves continued their success, winning the World Series in 1957 and another National League pennant in 1958 during their 13-year stint in the city.
The franchise's move to Atlanta in 1966 marked the beginning of a new era. The Braves experienced tremendous success during the 1990s, winning the National League pennant five times in 1991, 1992, 1995, 1996, and 1999, including a World Series victory in 1995. This success extended into the 2000s, with the team winning an impressive 14 consecutive division titles between 1991 and 2005.
Financial Performance and Outlook
In the fiscal year ended December 31, 2024, Atlanta Braves Holdings reported total revenue of $662.75 million, up from $640.67 million in the prior year. The Baseball segment contributed $595.43 million in revenue, while the Mixed-Use Development segment generated $67.32 million. This performance exceeded the company's previous guidance for 2023, demonstrating strong execution and growth.
Despite the challenges posed by the pandemic, the company has demonstrated its resilience, with Adjusted OIBDA (a non-GAAP measure) increasing to $39.68 million in 2024, up from $37.76 million in 2023. This growth was driven by a combination of increased revenue and disciplined cost management. The company's operating loss improved to $39.8 million in 2024, compared to a loss of $46.4 million in 2023.
For the most recent quarter ended December 31, 2024, Atlanta Braves Holdings reported quarterly revenue of $52.12 million, a decrease of 22.9% year-over-year. This decline was primarily due to fewer home games and events held at Truist Park in Q4 2024 compared to the prior year period. Quarterly net income was -$28.47 million.
Looking ahead, the company remains optimistic about its prospects. While specific numerical guidance for 2025 was not provided, management expressed confidence in the talent on their roster and their ability to compete and win at the highest level in the upcoming season. The company noted that many of their key players are healthy and ready to contribute after dealing with injuries in 2024. Additionally, the Braves are set to host the MLB All-Star Game in July 2025, which is viewed as a major opportunity for the franchise.
The Braves have recently secured long-term local broadcasting and sponsorship agreements, providing a stable revenue stream. Additionally, the continued development and expansion of The Battery Atlanta is expected to contribute to the company's financial performance, with new tenants and increased visitor traffic driving growth in the Mixed-Use Development segment.
Liquidity
The company's liquidity position remains strong, with a focus on maintaining financial flexibility to support ongoing operations and future growth initiatives. As of December 31, 2024, Atlanta Braves Holdings had $110.1 million in cash and cash equivalents. The company's available credit facilities included a $125 million League Wide Credit Facility, a $39.1 million MLB Facility Fund Revolver, and a $150 million TeamCo Revolver.
Atlanta Braves Holdings continues to manage its cash flows effectively, balancing investments in player development, stadium improvements, and The Battery Atlanta expansion with prudent financial management. The company reported annual operating cash flow of $16.63 million and annual free cash flow of -$69.38 million for the fiscal year 2024.
The company's debt-to-equity ratio stood at 1.375 as of December 31, 2024, indicating a leveraged balance sheet. However, the current ratio and quick ratio were both 0.625, suggesting adequate short-term liquidity.
Competitive Landscape and Risks
The Braves compete not only with other MLB teams for on-field success and fan engagement but also with a wide range of entertainment and leisure options for consumers' discretionary spending. The team's performance, player acquisitions, and fan experience at Truist Park and The Battery Atlanta are critical factors in maintaining the Braves' competitive edge.
Risks facing the company include the potential for labor disputes, the impact of economic conditions on ticket sales and sponsorship revenue, and the ongoing maintenance and development costs associated with Truist Park and The Battery Atlanta. Additionally, the company's business is subject to the rules and regulations of MLB, which could change in ways that adversely affect the Braves' operations.
Recent Developments and Outlook
In 2024, the Braves hosted the MLB All-Star Game, showcasing Atlanta and Truist Park to a global audience. The company also announced several strategic partnerships, including a deal with FanDuel Sports Network to stream Braves games and a collaboration with Gray Media to expand the team's television footprint.
The Braves continued their on-field success in 2024, making the playoffs for the 4th time in 5 seasons. However, the team did not advance as far in the postseason as in previous years, resulting in lower postseason-related revenue compared to the prior year.
The Battery Atlanta welcomed new tenants in 2024, including popular establishments such as Shake Shack and Walk-On's Sports Bistro, further enhancing the mixed-use development's appeal and revenue potential.
Looking ahead, the Braves are poised for continued success, both on the field and off. The team's talented roster, led by stars like Ronald Acuna, Austin Riley, and Spencer Strider, combined with the company's investments in Truist Park and The Battery Atlanta, suggest a bright future for Atlanta Braves Holdings.
Industry Trends
The Major League Baseball industry has seen steady revenue growth over the past decade, with a compound annual growth rate (CAGR) of approximately 4-5% from 2014-2024. The league's new collective bargaining agreement signed in 2022 included provisions to expand the postseason, which has driven increased viewership and revenue. However, the industry remains challenged by declining live attendance at some stadiums as consumer preferences evolve.
Conclusion
Atlanta Braves Holdings, Inc. (BATRA) is a well-diversified sports and entertainment company with a strong foundation in the iconic Atlanta Braves franchise and a growing Mixed-Use Development segment. The company's strategic initiatives, including the ongoing development of The Battery Atlanta and the team's consistent on-field success, position it for continued growth and value creation for shareholders. While facing challenges such as fluctuating game attendance and the need for ongoing investment in player talent and facilities, the company's strong brand, diverse revenue streams, and strategic focus on both baseball operations and real estate development provide a solid foundation for future success.