What the Braves Can Tell Us About MLB’s Financial Losses in 2020
Losses have come to dominate the narrative when it comes to baseball finances over the past year as the world has struggled to deal with the COVID-19 pandemic. With just a 60-game schedule and no fans in the stands during the regular season, revenues dropped precipitously. The losses have been called “historic” and “devastating” by commissioner Rob Manfred and “biblical” by Cubs owner Tom Ricketts. Separating hyperbole from reality is difficult when there is little concrete information to contest bald assertions from interested parties, and the refusal of those parties to divulge any of their info invites skepticism. As a result, we need to turn to the Braves, who are traded publicly and issue quarterly reports about their finances, to get a better sense of the picture league-wide.
This is not the first time we’ve taken a look at Atlanta’ finances, though 2020 represents a radically different year, with operating income (Adjusted OIBDA) totaling around $150 million in 2018 and ’19 combined. Before taking a broader look, let’s run through the third quarter, which includes July, August and September, aka the regular season. During this time, the team played 60 games, including 30 at home. Baseball revenue stood at $102 million, half that of what came in during the third quarter in 2019. Due to paying players pro-rated salaries and not having fans at games, expenses (which include the Battery development outside the park) also dropped, from $167 million to $104 million. If we assume that The Battery, with $8 million in third quarter revenue, is a breakeven proposition at the moment, that means that on an operating basis, the Braves’ turned a $6 million profit during the season despite having no fans in the seats. While MLB might claim teams lost money for every game played this season, the Braves are the only club with any amount of transparency regarding their finances, and they didn’t. Read the rest of this entry »

