Braves, MLB say Wall Street’s missing team’s $1B real estate story

The Atlanta Braves say Wall Street has missed the call on the commercial real estate assets that make up a key part of the franchise’s balance value.

During the club’s first dedicated investor day since Liberty Media spun off Braves Holdings Inc. as a standalone public company, team executives said their $1 billion real estate portfolio remains underappreciated by markets and serves as a cornerstone of the team’s growth model, the Atlanta Business Chronicle reported.

Braves Chairman Terry McGuirk and MLB Commissioner Rob Manfred took the stage to champion the franchise’s approach to monetizing ballparks via mixed-use development.

“The Braves are really, from our perspective, a model franchise,” Manfred said, crediting the 2017 move to Cobb County and the creation of The Battery Atlanta as a game-changing blueprint for stadium economics.

The team has doubled down on that strategy. 

In April, Braves Development Company spent $93 million to acquire Pennant Park, a six-building, 760,000-square-foot office campus just across from Truist Park. Braves CEO Mike Plant said the group is continuing to scout acquisitions surrounding The Battery, aiming to expand its footprint and tamp down the seasonal volatility of baseball-related revenue.

That expansion includes new tenants like Shake Shack and Truist Securities and a 250,000-square-foot headquarters building. Construction is also underway on The Henry, a mixed-use development with 650 apartments, condos and a hotel.

Despite this, Braves executives argue their current market cap — roughly $2.73 billion — doesn’t reflect the real value of their real estate, which they peg at over $1 billion. By comparison, the Dodgers and Red Sox have higher revenue multiples despite less diversified holdings.

McGuirk dismissed any plans to spin off the team’s baseball and real estate operations and left the door open to investing in other sports and entertainment assets. He also noted that lobbying efforts are underway to address a $19 million tax bill tied to Braves Holdings’ public structure.

“There’s no way I’d rule out anything,” McGuirk said. “You can be sure if we see high returns for the use of our time and effort and associations with the Atlanta Braves brand, we’re going to do it.”

— Judah Duke