The Braves Made Some Money in 2021

As the lockout wears on, team financials have repeatedly been called into question. Are teams making money? What about if you ignore franchise value? Commissioner Rob Manfred recently claimed that owning a baseball team has been a worse investment than investing in the stock market, a claim that was quickly challenged by outside observers. Last week, Liberty Media, the principle owner of the Atlanta Braves, announced their 2021 financial results, shedding some light on the financial state of the league.
The Braves enjoyed a banner year in 2021. Per their filing, they turned a profit of $104 million. That’s full-year OIBDA, or operating income before depreciation and amortization. That brings their four-year operating income, including the pandemic-marred 2020 season, to $193 million.
OIBDA sounds like a great big pile of financial jargon, and it is, so let’s talk about what all of that means. Operating income refers to the money that the team has left over after it takes in all its revenue and pays all of its costs. More specifically, it’s revenue minus the cost of goods sold minus other operating expenses. If a team sells 100 hot dogs for a net $800, that’s $800 in revenue. If they paid $20 to buy those hot dogs in bulk, that’s $20 in cost of goods sold. If they pay the vendor who sells those hot dogs $15, that’s $15 in other operating expenses. Voila – $765 in operating income. Read the rest of this entry »