Shareholder pushing for a sale of the Atlanta Braves

The Atlanta Braves are the only publicly traded team in Major League Baseball, and because of that, reports like this sometimes come to light.

Breach Inlet Capital is urging Atlanta Braves Holdings to pursue a sale of the Braves, citing the skyrocketing value of franchises across sports and a potential MLB lockout looming in the winter.

“Breach Inlet Capital Management, LLC (“Breach Inlet Capital” or “we”) is a top 20 institutional shareholder of Atlanta Braves Holdings (“BATRK” or the “Company”),” a public letter from Breach Inlet Capital to the Board of Directors read, via Business Wire. “We have been patient, long-term investors in the Company for nearly a decade. However, we believe the timing is optimal to pursue a sale of BATRK for the reasons outlined below. While we appreciate that John Malone has effective voting control of the Company, the Board’s fiduciary duties obligate it to act in the best interest of all shareholders. We hope and trust that Mr. Malone and most shareholders would be aligned with our recommendation. We urge the Board to diligently consider all options, including our recommendation for a sale process.”

Breach Inlet Capital specifically mentions the Seattle Seahawks’ recent sale at $9.6 billion as an example of the surging sale prices of sports franchises. The Lakers also recently sold for a record $12.5 billion, and while no MLB franchise is likely to challenge those two, the Padres recently sold for $3.9 billion and the Angels sold for $4 billion — figures the Braves could certainly target to eclipse given their stronghold on the entire market in the Southeast and The Battery, which has become a case study for new arena ventures across all sports.

The letter continues by addressing a potential lockout in the winter. Major League Baseball has done a tremendous job in recent years of increasing popularity, headlined by new rules like the pitch clock, which have helped speed up the time of games. The momentum around the sport has moved forward like a freight train as a result, but a lengthy lockout — like most expect is on the horizon — would bring that positive charge to a screeching halt and then some.

“But this momentum could face a near-term headwind,” the letter continued. “The MLB’s Collective Bargaining Agreement expires December 1, 2026. Many team owners want a salary cap like other leagues, while players appear adamantly opposed. The consensus view seems to be that this will lead to a lockout. That will be the case if history is a guide. When owners and players last fought over a salary cap in 1994, the players went on strike for 239 days, causing the World Series to be canceled for the first time since 1904. MLB attendance did not exceed its 1993 peak until 13 years later in 2006.

“BATRK’s Board (and John Malone) should not hope that history does not repeat itself and should instead capitalize on the MLB’s current momentum ahead of a potential extended lockout.”

For most fans who follow the Braves closely, a sale of the team would be welcome news. This team generates gobs of cash year after year, and yet the commitment to winning from a payroll perspective doesn’t always seem to be there — at least not in regard to the way the team spends in free agency.

However, while I do feel like a sale of the Braves is probable at some point down the line, I would urge disgruntled fans to be careful what they wish for. This is a club that currently sits sixth in the league in payroll at $260 million. That’s nearly triple where they were a decade ago, so the idea that the Braves are among the cheaper teams in the sport is only for those who refuse to look at the facts.

Could the Braves stand to spend a little more? Of course, but there are a lot more abysmal owners across the four major sports than there are quality ones. The grass isn’t always greener on the other side.

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(Photo by David J. Griffin/Icon Sportswire)