The Atlanta Braves and the Importance of the Local Market
Determining profits and losses for baseball franchises is a speculative task. When teams say they’re losing money, we can take them at their word or ignore them. They don’t open their books, so how much money teams make or lose is subject to factors outside of publicly available knowledge — and, therefore, equally subject to a lot of potential “massaging” on the part of the teams themselves.
That state of affairs might change slightly in the near future, however. Liberty Media, owners of the Atlanta Braves — as well as a majority stake in Sirius XM and a substantial stake in Live Nation Entertainment — are planning to offer stock in their separate divisions. As a result, they’ll have to provide more information to the public on the Braves’ operations. The Braves are claiming losses over the past few years, although in a cash sense, those losses are a bit deceiving, and the team is set to make money this season after slashing payroll.
There was a time, not all that long ago, that almost all Atlanta Braves games were broadcast nationally on TBS. The cable network, owned ostensibly by the same person who owned the Braves, Ted Turner, used the Braves to get publicity for his cable network, and the Braves were able to reach a broader base of fans. In the middle of the Braves’ great run of success, Time Warner bought Turner’s broadcasting company and the Braves, and the new owners continued to put Braves games on TBS. Changes to this once symbiotic partnership, however, brought an end to TBS’s almost daily Braves telecasts and saw the team enter one of the worst television contracts of the last few decades.

