As the Atlanta Braves are the only Major League Baseball club to have their finances publicly disclosed, their second quarter financial report shows the club seeing an increase in revenue and profit.
With Liberty Media owning the club, their quarterly report shows that between baseball-related revenue and revenue from Battery’s mixed-use development outside of the ballpark, the Braves Group posted an operating profit in the second quarter – a form of profit – by $37 million, up +16. % of their first quarter of $32 million. Accounting for Q1 and Q2, operating profit is $69 million. With two months remaining in the regular season and the team on track for the playoffs, the club’s profits are expected to top $100 million.
Year-on-year, the Braves Group sees a 16% increase in profits. In the second quarter of 2021, Liberty Media reported that the Braves earned $32 million in operating income.
Revenues have been exceptionally strong for the club. Baseball-related revenue was $247 million, while Battery development generated $13 million for a total of $260 million for the quarter, up +20% from Q1 with $216 million.
Baseball-related revenue includes streams such as ticket sales, concessions, corporate sponsorship sales, retail, suites, premium seat fees and playoffs), local media rights and centralized Major League Baseball revenues such as national media rights and licenses. This year marked the start of new national TV and streaming offerings, representing a huge increase in centralized revenue growth for all clubs in the league. The league will see $12 billion in domestic media rights through domestic television partners alone when they expire in 2028.
According to the report, during the first and second quarters, approximately $2 million of corporate-level selling, general and administrative expenses (including stock-based compensation expenses) were allocated to the Braves Group. .
The Braves are an interesting case study considering they won the World Series in 2021, which is increasing season ticket sales and sponsorships. Their profits are definitely not at the top of the 30 clubs in the league, but certainly put them in the first quartile.
The key to the Braves’ financial well-being centers on returning to full capacity in 2022 at Truist Park, which hosts team games. For the 2021 regular season, the Braves saw capacity restrictions due to the pandemic with fans in attendance capped at 33% for the first home game on April 9, which increased to 50% capacity from April 23. .rd. It’s only May 7 of 2021 that the ballpark was allowed to be at full capacity.
If the Braves don’t repeat as World Series champions in 2022, some revenue could drop slightly. However, new revenue streams are coming for all 30 clubs in 2023.
Clubs can negotiate uniform patch deals with sponsors. The starting size agreed upon by the league and union for players will be 4 inches by 4 inches and may be placed on the right or left sleeve of the field uniform. At a minimum, all referral partners must remain consistent for at least one year.
Beginning with this year’s playoffs, the league is negotiating a helmet decal sponsor who will represent new centralized revenue that affects all 30 clubs.