It's interesting to look at the business of pro sports teams... The Atlanta Braves are publicly traded (𝘨𝘪𝘷𝘪𝘯𝘨 𝘶𝘴 𝘢 𝘨𝘰𝘰𝘥 𝘷𝘪𝘦𝘸): 𝗦𝘁𝗮𝗱𝗶𝘂𝗺-𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘀𝘁𝗿𝗲𝗮𝗺𝘀 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: 🏟 • tickets • advertising • concessions • merchandising • parking/passes The "sports team" itself is the tip of the spear for monetization. Expanding product channels not only 𝘣𝘰𝘰𝘴𝘵𝘴 𝘵𝘰𝘱-𝘭𝘪𝘯𝘦 𝘳𝘦𝘷𝘦𝘯𝘶𝘦 but also deepens fan engagement. 𝗢𝘁𝗵𝗲𝗿 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘀𝘁𝗿𝗲𝗮𝗺𝘀 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: 💰 • sponsorships • special events • online merchandise • national media rights • in-person experiences • local media rights (radio/tv) • entertainment (documentaries) • real estate development projects • licensing (sports betting, products, etc) The Atlanta Braves parent company (NASDAQ: BATRA) is valued at a market capitalization of $2.56 billion and an enterprise value of $3.01 billion. Warren Buffett is a shareholder of the Braves. 𝗜 𝘄𝗼𝘂𝗹𝗱 𝗲𝘅𝗽𝗲𝗰𝘁 𝘁𝗼 𝘀𝗲𝗲 𝗺𝗼𝗿𝗲 𝘁𝗲𝗮𝗺𝘀 𝗴𝗼 𝗽𝘂𝗯𝗹𝗶𝗰 𝗼𝘃𝗲𝗿 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝘁𝗲𝗻 𝘆𝗲𝗮𝗿𝘀.
Information via https://www.bravesholdings.com/investors/financial-information/sec-filings and graph via @Joel Van Essen,
This advertising line could be 4X.
just goes to show, the money is in ownership (and then marketing your product/service)
You can view the financials here: https://finance.yahoo.com/quote/BATRA/financials/ The $640m is total revenue. From there you need to deduct the cost of the revenue (almost $500m) and other expenses which totals $686m. Balance sheet-wise, they lost money however with sports teams that's never the whole story because these teams are generally part of a larger ecosystem of business interests and partners, typically in hospitality and entertainment and merchandise and marketing. Organizations like this are great to study and understand!
There is a most fascinating story behind how all that revenue funnels in. The move of the stadium from downtown to where it stands today, and how it all happened which led to this success could be made into a movie.
This is really cool. I do think lot more teams probably will sell a stake in private equity because most of the sports team value in the scarcity. There are 30 mlb teams. 32 nfl teams, so owning one is not a given thus the value is a premium. Steve Cohen buys the Mets and invest millions into the team because he is a fan first but he also knows that winning brings a certain culture and attention to it. The he wants to bring an entertainment center and casino around the stadium. So he uses the team to be the hub for the things that will really make money. To put it another way. Forbes value the Braves at 2.8 billion and if it sold it could probably fetch 4 billion. But the stock values it at 2.4 billion. For an individual investor your stock is discount to the fact the underlying asset is so illiquid and all the value is when it finally sells. Maybe one or two sports teams sell per year.
What a FASCINATING revenue breakdown here
Would be awesome to see their costs broken down as well
Managing Director - Self Storage: Europe & UK at ASSA ABLOY Global Solutions
6moOn the face of it, good revenue, but anything on the profitability? We often see our soccer teams (Europe) report on revenue figures, but seldom, if ever, on their profit levels. And, we do know they have significant costs associated with running them, not least on inflated payrolls. NB - Not a criticism of the post, just curious....