The Atlanta Braves got off to one of their best starts in franchise history this season, winning a league-high 60 games before the All-Star break, and fans reciprocated by opening their wallets.
Atlanta Braves Holdings (ABH), the newly created separate public company after a July split-off from Liberty Media, reported Friday that the MLB club generated $270 million in total second quarter revenue—an 8% jump from the same period last year. That figure includes $15 million in development revenue reeled in from The Battery, the multi-use development adjacent to the Braves’ stadium, Truist Park.
The Braves’ $255 million in baseball revenue includes $68 million from broadcast payouts both nationally and locally through Diamond Sports Group, the embattled Sinclair-affiliated company that operates regional sports network Bally Sports. Liberty Media CEO Greg Maffei reiterated that there’s been no change to the agreement with Diamond despite the company dropping other MLB teams, including the San Diego Padres and Arizona Diamondbacks, after it filed for Chapter 11 bankruptcy in March.
“We think we’re probably the most profitable RSN they have,” he said on an investor call Friday. “Some of the other ones were less attractive as territories or fan bases, or relatively less attractive … to Bally. And that’s why in the bankruptcy proceedings they were terminated by Bally.”
Bally Sports South is Diamond’s highest-rated channel. At the All-Star break, it was averaging 81,500 viewers per game, up nearly 20% vs. the year-ago period.
The Braves, which are in a 20-year local TV rights deal that expires in 2027, are reaping the benefits of their contractual rates increasing two years removed from a World Series title. Maffei, who also serves as chairman and CEO of ABH, previously said team parent company Liberty Media would find alternatives if there was a disruption with Bally Sports, but doesn’t currently expect changes in the near future.
“We’re blessed to have an incredibly strong territory [with] 14 million broadband households, a fan base that is very appreciative of a very successful team, and a reasonable deal on what we are paid by Diamond,” he added.
While the Braves notched new highs in the second quarter, adjusted OIBDA and operating income decreased during the period. The team says that revenue growth was offset by increased operating costs due to higher player salaries and MLB’s revenue-sharing plan, among other things.
The Battery, meanwhile, was up 18% in adjusted OIBDA in the first six months compared to the same time last year and generated $10 million in adjusted OIBDA during the second quarter. ABH’s debt stood at $542 million (including financing costs) in the second quarter, which ended on June 30.
The Braves, which recently inked concrete manufacturer Quikrete as a jersey patch sponsor, are in strong position to continue their on-field success with a franchise-record eight All-Stars under contract through 2025. They’re aiming for a sixth straight NL East division title while rivals like the New York Mets clean house.
Liberty’s quarterly report on Friday is the conglomerate’s first since the Braves split-off was completed last month. The Braves, which are traded under BATRK and BATRA, are one of the key assets in the company’s sports portfolio alongside Formula 1. F1 reported $724 million in revenue in the second quarter, a slight decrease from the $744 million made during the same time last year. The dip is largely attributed to the rain cancellation of the Emilia Romagna Grand Prix event at Imola back in May.
(With assistance from Anthony Crupi.)