Investor Discussions - BATRA: ATL Braves Tracker Stock
Wealth & Pension Services Group
William Kring, CFP, AIF - Chief Investment Officer
Matt B. Bailey, CFA, CMT - Senior Portfolio Manager
This month, the parent company of the Atlanta Braves, Liberty Media, made history when it created a new share class of its stock designed to track the economic progress of the Braves. The new “tracker stock” will be registered under the ticker “BATRA” and will allow fans the opportunity to own a piece of the Braves and share in their success or hardship. Liberty Media will retain a 20% stake in the historic franchise.
Currently, the Braves are the only publicly traded MLB (Major League Baseball) team and one of only a few professional sports organizations to offer public equity ownership. Madison Square Garden (MSG) is example of another a publically traded sports group. Ownership in MSG provides shareholders with exposure to franchises such as the New York Knicks; however, it’s not as direct as BATRA.
Looking ahead, the Braves are a season away from christening their new stadium, SunTrust Park. The total cost of the new mixed-use development (just three miles from our office) is estimated to be upwards of $1.1 billion. The plan is for the stadium to have an intimate feel with seats that will be closer to the field than any other MLB park. In addition, it will include office space, a hotel, restaurants, and other retail businesses (see artist’s rendering). Liberty Media and other shareholders are hoping the new stadium attracts new fans as attendance has steadily declined from the heydays of 1990s.
So far, BATRA appears to be much more of a strikeout than home run, but the season is still young. In its first week of trading, the stock was down significantly from its offering price and has continued to decline. Even so, the Braves have a young roster eager to prove their worth and the prospects of the team are bright. For now, it’s up to the market to decide what the Braves are worth.
As always, please feel free to contact us with any questions you may have.
William Kring, CFP®, AIF®
Chief Investment Officer
Matt B. Bailey, CFA®, CMT®
Senior Portfolio Manager
Source: New York Post, Wikipedia, Baseball-almanac.com