Major League Baseball is a profitable enterprise, and (not surprisingly) MLB owners tend to benefit from that profitability, generally through revenues directly related to operating those franchises. However, MLB owners have also profited from ventures only partially related to MLB ownership, as well. They’ve made money owning television stations that also happen to air the games of teams they own. Owners are also in the process of spinning off the non-baseball related arm of MLBAM for billions. Notably, MLB owners have begun capitalizing on another revenue stream: developing the land near their teams’ ballparks.
When the Atlanta Braves announced they were leaving a 20-year-old Atlanta-based stadium for a new one out in the suburbs of Cobb County, it took many by surprise. Cobb County made an appealling offer to the Braves, and one of the Braves’ promises was a $400 million mixed-used land development surrounding the stadium. While this has some likely benefits for Cobb County, it has the potential to be very beneficial for the Braves, as well — and it was one of their reasons for leaving Atlanta.
Bucking the trend of pro teams seeking stadiums and arenas closer to the city center, the Braves’ new facility will be part of a 60-acre development near Cobb Galleria mall. Plant compared it to new ballparks in Cincinnati, San Diego and Houston, as well as L.A. Live, which hosts the NBA’s Los Angeles Lakers and Clippers and the NHL’s Kings at Staples Center.
“With our current location, we couldn’t control that process,” Plant said. “This site allows us to do that.”
In Cincinnati, the Reds have their Hall of Fame across the street. In Houston, the Astros took over Union Station. However, the first major attempt to control an entire area of land around the stadium had mixed results. In San Diego, real estate developer JMI, owned by John Moores, the previous owner of the Padres before a messy divorce forced the sale of the team, built up the area around the park, mainly with housing after original plans for more office buildings had to be scrapped due to economic conditions. The area is still in flux, as it was also a potential site for a new stadium for the San Diego Chargers.
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