Atlanta Braves Holdings Inc. (NASDAQ: BATRA; NASDAQ: BATRK) saw its shares edge higher on Friday following reports that the Los Angeles Angels are being sold for $4 billion. While the headline figure might suggest a significant upside for the Braves, a closer look at the numbers reveals a more nuanced picture.
At Friday's closing prices, the Braves' three share classes had a combined equity value of approximately $3.30 billion. Adding the company's net debt of $677 million brings its enterprise value to $3.975 billion—just 0.6% below the reported Angels valuation. This suggests that the private market valuation of baseball franchises is already reflected in the Braves' current stock price, rather than indicating a hidden windfall for shareholders.
Kroenke Sports & Entertainment has agreed to acquire control of the Angels, with Arte Moreno retaining an undisclosed minority stake. The deal, expected to close in the first quarter of 2027, is subject to Major League Baseball approval. The official announcement did not disclose a price, but the Los Angeles Times reported a $4 billion valuation, citing a person familiar with the transaction.
Stan Kroenke, the owner of Kroenke Sports & Entertainment, called the Angels a “storied franchise anchored in a great market.” The deal underscores the scarcity value of Major League Baseball teams, which could be supportive for listed baseball assets like the Braves.
However, the comparison between the Angels and the Braves is not straightforward. The Braves' enterprise value includes not only the baseball team but also The Battery Atlanta, a mixed-use real estate development adjacent to Truist Park. In the second quarter, the property segment generated $28.7 million in revenue and $21 million in adjusted operating income before depreciation and amortization, while the baseball operations posted a loss of $6 million on that measure. The property business, though small, adds diversification and value that a pure franchise sale cannot capture.
Rosenblatt analyst Barton Crockett retained a Buy rating on BATRK and trimmed his price target to $73 from $75, implying a 44.7% upside from Friday's close. However, risks remain. Baseball's collective bargaining agreement expires on December 1, and a potential lockout in 2027 could disrupt the season, affecting ticket sales and media revenue. Short interest in the stock has been as high as 6.8% of tradable shares, according to Axios.
Additionally, the thin trading volume in BATRA shares—only 45,117 shares changed hands on Friday—can amplify price swings. The broader economic environment, including potential real estate vacancies and refinancing costs, also poses risks to the company's diversified model.
In summary, while the Angels' sale validates the value of scarce baseball assets, it does not imply that the Braves' stock is undervalued. The enterprise value comparison shows that the market has already priced in nearly all of the reported $4 billion comp. Investors should consider the full picture, including debt and the mixed-use property portfolio, when evaluating the Braves' investment case.
