Citing recent record-setting prices for sports franchises, the uncertainty of an upcoming lockout and the monopoly Major League Baseball franchises have on their territories, a minority investor in the Atlanta Braves sent a letter to the teams' board of directors urging it to sell the franchise.
The Monday, Sept. 14 letter from Breach Inlet Capital Management, a boutique investment firm, to Atlanta Braves Holdings' board of directors outlined several reasons why the time would be right for a sale.
Most notably, the firm cited the recent sale of the San Diego Padres for $3.9 billion to Jose E. Feliciano and Kwanza Jones, and the pending $4 billion sale of the Los Angeles Angels from Arte Moreno to Stan Kroenke, both of which greatly exceeded those
franchises' estimated valuations.
The Braves' value was most recently estimated at $3.35 billion by Forbes, seventh among major league franchises; the Angels were valued at $2.8 billion in those estimates. The club controls a development - the Battery - that's adjacent to Truist Park and has been the envy of other franchises seeking a similar build-out that allows it to control revenues that don't need to be shared with other MLB franchises.
The Braves were spun off from Liberty Media in in 2023 yet John Malone, the chairman of Liberty Media, remains the largest shareholder in the club. Terry McGuirk remains the club's CEO and control person, a role he assumed when Liberty purchased the club in 2007 for an estimated $460 million.
The Braves did not immediately respond to a request for comment. Malone in 2024 cooled the notion of a Braves sale in an interview with Sportico, saying comments from Liberty Media CEO Greg Maffei that did not rule out a franchise sale were misinterpreted.
Breach Inlet Capital's letter to the Braves, signed by founder and portfolio manager Chris Colvin and published by Business Wire, cites its "fiduciary duties obligate it to act in the best interest of shareholders" in urging a sale; according to Fintel, Breach Inlet Capital's investment in the Braves comprises roughly 13.5% of its portfolio, with a value most recently disclosed at $40.4 million.
It suggests the Braves' board and Malone "should capitalize on the current backdrop and not assume valuations for sports teams will keep climbing at these rapid rates into perpetuity," and, citing the player strike of 1994-95 and the impending lockout in December, "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."
Additionally, Breach Inlet Capital cited changes to the tax code that "disadvantage the Braves relative to privately owned MLB teams" while noting that it views "every MLB team as a monopoly with scarcity value." The Braves' history, their significant footprint in a growing segment of the Sun Belt and the presence of the Battery add significantly to the club's value.
"If (Malone) is unwilling to sell and believes that (the franchise) is worth significantly more than its current trading price," wrote Colvin, "we encourage him to submit a proposal to take the Company private."
Colvin acknowledged that while MLB's media rights are up for bid en masse following the 2028 season, he projects that the eye-opening prices for the Padres and Angels already reflect what's expected to be a leaguewide windfall.
This article originally appeared on USA TODAY: Braves minority investor urges club to sell while MLB club values high
