Barron's — Atlanta Braves Stock Looks Cheap Amid Booming Pro Sports Team Values
The public company's market cap is $3.3 billion, but it could be worth far more to a private buyer — over $100 a share on the Angels' revenue multiple plus real estate, against a ~$50 nonvoting stock.
One-line take: Atlanta Braves Holdings (BATRK) — one of only two listed U.S. pro-sports plays — is up ~25–30% this year yet trades at $3.3B, below the Angels' ~$4B sale (and a similar Padres price). Teams sell on revenue multiples: the Angels went for ~10x ~$400M; on ~$650M of Braves baseball revenue that's $6.5B (Gabelli's Chris Marangi, the largest holder), plus ~$1.25B of real estate, less ~$700M net debt → over $100/share vs ~$50. Why the discount: meager earnings (~$50M), a threatened 2027 lockout over a salary cap, a small national TV deal (up in 2029), and uncertainty over whether controller John Malone (85; 7% economic / 50% vote; "store is always open") sells — he's patient, tax-averse, and heirs could get a step-up. A push to sell: a new rule barring deduction of the top-five salaries from next year. Boyar: "surprised if the company is still public five years from now." The nonvoting K shares are the better buy (~$5 below the A shares). Contrast: MSG Sports, where James Dolan has ruled out selling the Knicks or Rangers. (BATRK Positive; MSGS Neutral.)
1. Stocks & names mentioned
A written Barron's stock pick (no video), so the "At" column links to the article. The recommended line is the nonvoting Series C (BATRK); the voting A shares (BATRA) are mentioned only as the pricier class and not rowed. MSG Sports is the only other listed U.S. team owner and an argued contrast. The Angels, Padres, Yankees and Dodgers are private franchises used as comps. Research legend: QT Qualtrim · SA Seeking Alpha · STK Stock Analysis.
| Ticker | Name | Research | View | What the article said | At |
|---|
| BATRK | Atlanta Braves Holdings (Series C, nonvoting) | QT · SA · STK · FA | Positive | Barron's Stock Pick. $3.3B market cap vs the Angels' ~$4B sale; at the Angels' ~10x revenue on ~$650M of baseball revenue the team is worth ~$6.5B (Gabelli), plus ~$1.25B real estate less ~$700M net debt = over $100/share vs ~$50. Discount reflects thin earnings, a 2027 lockout risk, a small TV deal and Malone's timing/tax issues. K shares ~$5 cheaper than A. "A one-of-a-kind asset that offers a margin of safety." | read ↗ |
| MSGS | Madison Square Garden Sports | QT · SA · STK · FA | Neutral | The only other public U.S. sports-team company (Knicks, Rangers). Cited as the contrast on the sale catalyst: CEO James Dolan has ruled out selling either team, unlike Malone's "store is always open." No valuation view. | read ↗ |
2. Talking points
A rare listed sports franchise at a private-market discount
- Braves Holdings owns the MLB team and the real-estate development around its ballpark; only MSG Sports is a comparable listed U.S. team owner.
- Nonvoting shares ~$50 → $3.3B, even after a ~25% gain this year — below the Angels' ~$4B sale and a similar Padres price earlier this year.
How teams are valued — and what the Braves could fetch
- Trophy assets priced on revenue multiples, not "often meager earnings." Angels: ~10x ~$400M revenue.
- Gabelli's Chris Marangi: 10x the Braves' ~$650M baseball revenue = $6.5B; add ~$1.25B real estate (management estimate), subtract ~$700M net debt → >$100/share.
- Boyar Intrinsic Value's Jon Boyar: "a pretty steep discount to the value of the team… I would be surprised if the company is still public five years from now."
Why it's cheap
- Earns little (~$50M net last year).
- Possible owners' lockout later this year — no 2027 season — over a salary cap.
- Small national TV contract; ends 2029, which CEO Terence McGuirk sees as "untapped growth." Baseball teams are "the value stocks of the sports world."
The Malone question
- Supervoting B shares turn a 7% economic stake into 50% voting control; Malone (85) is "shareholder friendly" and says the "store is always open," but told CNBC he's patient.
- He may await a labor resolution; a cash sale would trigger tax on a low basis. Tax expert Robert Willens: heirs could benefit from a step-up in basis by holding his ~$300M stake.
- Push factor: from next year a rule bars deducting pay of the five highest-paid employees (likely players); executive Mike Plant is "very confident" of a fix.
Which share class
- Nonvoting K shares look better value than the A shares (~$55), a ~$5 discount for giving up a vote that Malone's control makes moot.
- Verdict: "a one-of-a-kind asset that offers a margin of safety and a cheap way… to get exposure to baseball and the rising value of sports teams."
3. In plain English
A jargon-free summary of how each name is framed in the article. (Plain-language companion to the table above; renders on each ticker's consolidated page.)
BATRK — Atlanta Braves Holdings Positive
This company owns the Atlanta Braves baseball team plus the shops, offices and other property built around their stadium. It's one of the only ways to own a piece of a U.S. pro sports team on the stock market, and the whole company is valued at about $3.3 billion.
That looks low next to what billionaires are paying for teams: the Los Angeles Angels just sold for about $4 billion, roughly ten times their yearly revenue. Teams are bought as trophies, so buyers pay for revenue, not profit. Apply the same multiple to the Braves' larger revenue, add the real estate and subtract debt, and the shares could be worth over $100 each — about double the price.
The catch is timing. The Braves earn little, baseball may have a lockout that wipes out the 2027 season, and a sale depends on controlling shareholder John Malone, who is in no hurry and may prefer to avoid a big tax bill. Barron's favors the nonvoting "K" shares because they cost about $5 less than the voting shares — and with Malone in control, the vote doesn't matter much anyway.
MSGS — Madison Square Garden Sports Neutral
MSG Sports owns the New York Knicks and Rangers and is the only other listed U.S. company that is basically a sports team. It is mentioned as a contrast: its boss, James Dolan, has said he won't sell either team, so unlike the Braves there's no obvious buyout path to close the gap between the stock price and what the teams might fetch. No recommendation either way.
Summary derived from the Barron's article (full text saved in transcript.txt) for personal study. Not investment advice. © Barron's / Dow Jones for source material.