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MLB Playoffs, New York Mets Sale Could Boost Atlanta Braves Stock

The Atlanta Braves are one of only a few publicly traded sports teams. The team's run in the MLB Playoffs and rising MLB valuations could help boost shares.

· 10/06/2020 20:24

The Atlanta Braves are one of only a few publicly traded sports teams. The team's run in the MLB Playoffs and rising MLB valuations could help boost shares.

Atlanta Braves Franchise: The Atlanta Braves were purchased by Liberty in 2007 for $400 million. The Braves are now one of several publicly traded companies under the Liberty Global umbrella. The team trades as The Liberty Braves Group (NASDAQ:BATRA).

The team is also partially owned by two other Liberty units with Formula One Group (NASDAQ:FWONA) owning 11.3% and Liberty Sirius XM (NASDAQ:LSXMA) owning 3.8%.

The Atlanta Braves are valued by Forbes at $1.8 billion. The market cap of the Braves Is currently $1.1 billion and enterprise value stands at $1.4 billion.

The franchise's revenue has risen every year since 2016, hitting $382 million in 2019. That figure will likely fall with the loss of attendance revenue from no fans.

New York Mets Sale: In September, billionaire Steve Cohen bought the New York Mets for $2.4 billion, an MLB record. The valuation given to the New York Mets by Forbes in April was $2.4 billion.

Forbes saw MLB teams gain an average of 4% in their value in the latest results, the smallest increase since 2010. MLB teams value have risen an average of 4x in the last 10 years compared to the 2.5x return of the S&P 500.

Unlike the Mets, who have struggled to make the playoffs, the Braves have had a run of recent success; This is the third straight year the Braves have made the playoffs.

What’s Next: The Braves qualified for the MLB Playoffs in a shortened 60-game season. The team kicked off its National League Division Series Tuesday against the Miami Marlins.

A new media deal with Fox Corporation (NASDAQ:FOX) sees rates increasing by 50% starting in 2022.

The Braves new stadium opened in 2017. The stadium will host the 2021 MLB All-Star Game and has several real estate developments opening nearby. These items and mobile sports betting being passed in Georgia were listed as future growth opportunities.

Other Public Sports Teams: Madison Square Garden Sports Corp (NYSE:MSGS) owns the NBA’s New York Knicks and NHL’s New York Rangers along with other assets.

Manchester United (NYSE:MANU), of the English Premier League, is publicly traded on the NYSE. The company is the third highest valued soccer team in Forbes annual rankings.

Recently formed sports SPAC RedBall Acquisition Corp (NYSE:RBAC) raised $575 million to acquire a sports team or sports-related media asset.

Benzinga’s Take: A long playoff run or shot at the World Series could help boost the beaten-down market valuation assigned to the Atlanta Braves.

Sports teams continue to sell for record amounts, making it a strong asset to own. With a limited number of publicly traded sports teams, Atlanta Braves stock could be one of the ways to play this trend.

Price Action: Shares of Liberty Braves are up 3% Tuesday to $21.63. Shares have recovered since 52-week lows of $13.59 seen in April with shares up 25% in the last six months.