Atlanta Braves Holdings: A High-Growth Franchise Capitalizing on Synergies in Sports and Real Estate

Atlanta Braves Holdings, Inc. (ABH) has emerged as a standout in the sports and real estate sectors, leveraging its dual revenue streams—Major League Baseball (MLB) operations and mixed-use development—to drive outsized Adjusted OIBDA growth. With a strategic focus on diversification and innovation, ABH is not only capitalizing on the enduring appeal of baseball but also transforming its surrounding real estate into a thriving ecosystem of commerce, entertainment, and community. For investors, this dual-engine model presents a compelling case for long-term value creation.

The Power of Synergy: Baseball and Real Estate in Harmony

ABH's core business segments—MLB operations and mixed-use development—are not siloed but deeply interconnected. The company's flagship asset, Truist Park, is more than a stadium; it is a catalyst for the adjacent mixed-use development, The Battery Atlanta. This integration creates a flywheel effect: high-profile baseball events drive foot traffic to The Battery, boosting retail and rental income, while the vibrancy of the surrounding area enhances the appeal of the stadium itself.

In 2024, ABH's total revenue reached $662.7 million, with $595.4 million from baseball operations and $67.3 million from mixed-use development. The latter segment grew by 14% year-over-year, outpacing the 2% increase in baseball revenue. This divergence highlights the resilience of real estate in a post-pandemic world, where experiential consumption and urban development remain strong.

Driving Adjusted OIBDA Growth: A Closer Look

Adjusted OIBDA, a key metric for evaluating operational performance, has surged for ABH. For the full year 2024, Adjusted OIBDA totaled $39.7 million, a 5% increase from 2023. However, the second quarter of 2025 marked a breakout period, with Adjusted OIBDA jumping 44% to $65.7 million compared to the same period in 2024. This growth was fueled by:

1. Baseball Operations:
2. Broadcasting Revenue: A 14% increase in 2024, driven by streaming rights and contractual rate hikes.
3. Event Revenue: New premium seating and sponsorship agreements boosted income, even as concession revenue dipped due to lower attendance.

4. Spring Training: Offseason activities contributed to “other revenue,” mitigating seasonal volatility.

5. Mixed-Use Development:

6. Rental Income: A 49% surge in Q2 2025, attributed to lease commencements and an April 2025 real estate acquisition.
7. Sponsorship Revenue: Strategic partnerships with local businesses amplified The Battery's appeal.
8. Parking and Tenant Recoveries: Enhanced by improved occupancy rates and tenant performance.

Strategic Moves: Acquisitions and Operational Efficiency

ABH's recent acquisition of real estate assets in April 2025 has been a game-changer for its mixed-use segment. By expanding its portfolio, the company has diversified its tenant base and secured long-term lease agreements, insulating itself from short-term market fluctuations. Additionally, cost management has been a priority: operating costs for baseball operations rose only 3% in 2024, while mixed-use development costs increased 51% but were offset by higher revenue.

The company's ability to reduce selling, general, and administrative expenses by 9% in 2024 further underscores its operational discipline. This efficiency has translated into a 68% increase in operating income to $41.8 million, demonstrating ABH's capacity to convert revenue growth into profitability.

Investment Thesis: A Dual-Engine Model for Long-Term Value

For investors, ABH's dual-engine model offers several advantages:
- Diversification: The mixed-use development segment acts as a buffer during baseball's off-season, ensuring steady cash flow.
- Scalability: The Battery Atlanta's expansion and new lease agreements provide a clear path for revenue growth.
- Brand Equity: The Braves' storied history and fan base create a halo effect, enhancing the value of both the stadium and surrounding real estate.

However, risks remain. Baseball attendance and revenue are cyclical, and real estate markets can be volatile. Yet, ABH's strategic focus on premium experiences—such as concerts at Truist Park and high-end retail at The Battery—positions it to weather economic downturns better than traditional models.

Conclusion: A Franchise Built for the Future

Atlanta Braves Holdings is more than a sports team; it is a masterclass in leveraging synergies between sports and real estate. By combining the timeless appeal of baseball with innovative urban development, ABH has created a business model that is both resilient and scalable. With Adjusted OIBDA growth outpacing industry averages and a clear roadmap for expansion, the company is well-positioned to deliver outsized returns for investors.

For those seeking exposure to a high-growth franchise with a proven ability to adapt and innovate, ABH represents a compelling opportunity. As the company continues to unlock value from its dual revenue streams, the future looks as bright as the lights at Truist Park.