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Braves rolling in money but aren’t spending it on baseball

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The Atlanta Braves’ parent company, Liberty Media, released some financials today which show that the Braves are raking in cash, have seen profitability soar and have watched their debt go down. None of that is going into baseball, however. It’s going into real estate.

Via the Atlanta Journal-Constitution we learn:

  • Braves’ revenue increased to $442 million in 2018. That’s up 14.5 percent from 2017 ($386 million) and is up 69 percent from 2016 ($262 million);
  • $404 million of that revenue is from baseball; $38 million of is from real estate in The Battery development that surrounds the park;
  • Operating income (i.e. profit) before interest and depreciation surged from $7 million 2017 to $94 million in 2018;
  • Debt went down substantially in the final quarter of last year –from $626 million to $494 million — but Liberty says the Braves will take on more debt to fund the next phase of construction at The Battery; and
  • As noted many times in this space, baseball payroll is actually lower now than it was last year.

It’s pretty clear what all that means: baseball is subsidizing the Braves’ real estate interests. Said real estate interests — run by the Braves Development Company, which is a part of the baseball team’s organization structure, not standing outside of it — are the priority for the team.

When the Braves say they’d spend more if it was not for their debt, remember that the debt is going to build office buildings and that the debt will be serviced by, primarily, baseball revenue. At the same time, when they begin raking in more in rents from their office building tenants, one can safely assume it will not be used to pay player salaries.

This is Baseball in 2019. Does that excite you as a fan? Does that make you want to invest your money and your time in supporting this or other teams that operate like this? Before you answer, remember that it’s not just the Braves. The Rangers will soon look very much like this. Other teams already have or soon will have development surrounding the ballpark play increasingly larger roles in their business portfolio.

Doubleheader between Cardinals and Tigers postponed

Charles LeClaire-USA TODAY Sports
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A doubleheader between the St. Louis Cardinals and Detroit Tigers this week is being postponed to allow more time for additional COVID-19 testing.

MLB opted to postpone Thursday’s doubleheader to continue additional testing while players and staff are quarantined before the team returns to play. More details about the Cardinals’ resumption of play will be announced later this week.

The Cardinals had a series against Pittsburgh set to start on Monday postponed after a weekend series against the Cubs was scrapped due to three positive coronavirus tests.

St. Louis had two more players and a staff member test positive for the virus on Friday and have had eight positive players overall, including star catcher Yadier Molina.

There have now been 29 games postponed by Major League Baseball because of coronavirus concerns. The Cardinals have not played since July 30 and have had 15 games scrapped.

Miami and Philadelphia each had seven games postponed earlier and have returned to the field since the disruptions.

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