If You Invested in Atlanta Braves Holdings, Inc (BATRK)

Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) is a holding company whose business consists primarily of the Atlanta Braves Major League Baseball franchise and a related real estate portfolio. According to the company, it owns and operates the Atlanta Braves Major League Baseball Club and operates the club’s stadium, Truist Park. It also owns and manages a mixed-use real estate development known as The Battery Atlanta, located adjacent to Truist Park, and additional mixed-use real estate assets.

Core Business and Segments

Atlanta Braves Holdings reports its operations through two main reportable segments: Baseball and Mixed-Use Development. The Baseball segment reflects the activities of the Atlanta Braves Major League Baseball Club and related baseball operations. The Mixed-Use Development segment reflects the company’s real estate portfolio, including The Battery Atlanta and other mixed-use properties.

The company states that it consists of 100% of the ownership and voting interest in Braves Holdings, LLC, which is described as the owner and operator of the Atlanta Braves Major League Baseball Club and a real estate portfolio that includes The Battery Atlanta and the operation of Truist Park. This structure positions Atlanta Braves Holdings as an entity focused on both professional sports and associated real estate development.

Baseball Revenue Sources

According to multiple earnings releases, baseball revenue is derived from two primary sources on an annual basis:

• Baseball event revenue, which includes ticket sales, concessions, advertising sponsorships, suites and premium seat fees.
• Broadcasting revenue, which includes national and local broadcast rights.

Additional baseball-related revenue categories disclosed by the company include retail and licensing revenue and other revenue. These categories appear in the company’s disaggregated revenue tables for its Baseball segment.

Mixed-Use Development and Real Estate Portfolio

The Mixed-Use Development segment is described as being derived primarily from a real estate portfolio including the mixed-use facility The Battery Atlanta. The company indicates that this revenue primarily includes rental income, as well as other items such as parking and sponsorship revenue in certain periods.

In a press release announcing the acquisition of the six-building Pennant Park office complex, Atlanta Braves Holdings describes its real estate portfolio as including Pennant Park, a property adjacent to The Battery Atlanta. The company notes that Pennant Park consists of office buildings, parking facilities and various tenant amenities, and that this acquisition broadens its real estate asset base associated with The Battery Atlanta area.

Business Model Characteristics

Across its disclosures, Atlanta Braves Holdings emphasizes that it generates revenue related to the Braves baseball franchise and Truist Park from multiple sources, including baseball event revenue, broadcasting revenue, retail and licensing, and other baseball-related activities. For its real estate operations, the company highlights rental income from mixed-use facilities, as well as related items such as sponsorship and parking revenue in some periods.

The company also discusses Adjusted OIBDA (a non-GAAP financial measure) in its earnings releases as an indicator of operational performance. It defines Adjusted OIBDA as operating income (loss) plus stock-based compensation, depreciation and amortization, and certain other specified items, and provides reconciliations to operating income in its public financial disclosures.

Capital Structure and Public Listing

Atlanta Braves Holdings, Inc. is incorporated in Nevada, as indicated in its Form 8-K filings, and its Series C common stock trades on The Nasdaq Stock Market LLC under the symbol BATRK. The company also references Series A common stock trading under the symbol BATRA in its press releases. Its SEC filings identify a Commission File Number of 001-41746 and a federal employer identification number.

The company has discussed a prior corporate transaction referred to as the Split-Off from Liberty Media Corporation, describing that its historical financial information may not necessarily be representative of its future financial position, results of operations or cash flows. It also notes that it operates as a standalone public company following the split-off.

Operations and Events at Truist Park and The Battery Atlanta

In its earnings discussions, Atlanta Braves Holdings notes that baseball event revenue is influenced by regular season home games, postseason games, and other events held at Truist Park. Examples mentioned include concerts and non-MLB baseball events. The company also references spring training related revenue, including ticket sales, concession revenue and other gameday related revenue, as part of its baseball revenue categories.

For its mixed-use development activities, the company highlights lease commencements, tenant recoveries, sponsorship arrangements, parking revenue, and operating costs associated with acquired real estate assets. It describes The Battery Atlanta as a mixed-use development adjacent to Truist Park and notes that Pennant Park is an adjacent office complex that expands its land footprint and leasable office space.

Risk Factors and Operating Environment

Atlanta Braves Holdings’ press releases include extensive cautionary statements regarding forward-looking information. The company lists a variety of risks and uncertainties, including the impact of inflation and economic conditions on consumer demand for products, services and events offered by the company; the achievement of on-field success and the ability to develop, obtain and retain talented players; the impact of organized labor and the structure or expansion of Major League Baseball; the level of broadcasting revenue received; and inherent risks in the real estate business such as tenant defaults and potential environmental liabilities.

The company also notes risks related to operating as a standalone public company after the split-off from Liberty Media, indebtedness and access to financing, regulatory and competitive environments, data security and personal data protection, and the impact of geopolitical incidents, natural disasters, pandemics or other events that may affect scheduled events or cause reputational damage.

Use of Non-GAAP Measures

In multiple earnings releases, Atlanta Braves Holdings explains its use of Adjusted OIBDA as a supplemental measure to operating income. The company states that Adjusted OIBDA is intended to provide additional information regarding operational strength and performance by excluding items that are not viewed as directly reflective of ongoing business trends. It emphasizes that Adjusted OIBDA is not meant to replace or supersede operating income or other GAAP measures, but to supplement them.

Investor Communications

Atlanta Braves Holdings regularly announces quarterly earnings releases and conference calls. The company indicates that these calls and related webcasts may include discussions of financial performance, outlook and other forward-looking matters. It also notes that responses to questions during such calls may contain information not previously disclosed.

Through these disclosures, Atlanta Braves Holdings presents itself as a company that combines a professional sports franchise with a growing mixed-use real estate platform centered around Truist Park, The Battery Atlanta and adjacent properties such as Pennant Park.