Breach Inlet Capital Urges Atlanta Braves Holdings to Pursue a Sale Process

CHARLESTON, S.C.--(BUSINESS WIRE)--Breach Inlet Capital Management, a shareholder of Atlanta Braves Holdings for nearly a decade, today issued the following public letter to its Board of Directors outlining why the Atlanta Braves should pursue a sale process.

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September 14, 2026

Atlanta Braves Holdings Inc.
755 Battery Avenue SE
Atlanta, GA 30339
Attention: Board of Directors

Dear Board of Directors:

Breach Inlet Capital Management, LLC (“Breach Inlet Capital” or “we”) is a top 20 institutional shareholder of Atlanta Braves Holdings (“BATRK” or the “Company”). We have been patient, long-term investors in the Company for nearly a decade. However, we believe the timing is optimal to pursue a sale of BATRK for the reasons outlined below. While we appreciate that John Malone has effective voting control of the Company, the Board’s fiduciary duties obligate it to act in the best interest of all shareholders. We hope and trust that Mr. Malone and most shareholders would be aligned with our recommendation. We urge the Board to diligently consider all options, including our recommendation for a sale process.

1. Investor appetite for sports assets has never been higher with recent sales setting records.

The Seattle Seahawks broke an NFL record with its announced sale for $9.6b in July. One month later, the NBA’s Los Angeles Lakers announced a record transaction price for any sports franchise at $12.5b, which surpassed its own $10b record set just one year earlier. MLB valuations are also quickly rising and two teams set league records this year. First, the San Diego Padres reached an agreement to sell for $3.9b in April. Then, the Los Angeles Angels announced a new record sale price of $4b this month.¹

As more evidence that interest in sports assets is hitting new highs, the Wall Street Journal launched dedicated sports business coverage (WSJ Sports) in April. The WSJ then hosted its flagship event entitled WSJ Sports: The Next Sports Economy in July. Then this month, the WSJ published “The Hunt for AI-Proof Assets Is Leading Investors to Sports, Casinos and Travel” highlighting investor appetite for defensible business models in an AI world, such as sports franchises.

BATRK’s Board (and John Malone) should capitalize on the current backdrop and not assume valuations for sports teams will keep climbing at these rapid rates into perpetuity.

2. MLB’s popularity has rebounded, but an extended lockout could cause lasting damage.

Thanks to 2023 rule changes that expedited games, MLB attendance has grown for four straight years for the first time since 2004-2007. 2026 attendance will likely reach its highest level since 2017.² Those rule changes coupled with new TV deals with ESPN, NBC and Netflix have caused national game viewership to rise 44% in 2026 to its highest level in nearly a decade.³

But this momentum could face a near-term headwind. The MLB’s Collective Bargaining Agreement expires December 1, 2026. Many team owners want a salary cap like other leagues, while players appear adamantly opposed. The consensus view seems to be that this will lead to a lockout. That will be the case if history is a guide. When owners and players last fought over a salary cap in 1994, the players went on strike for 239 days causing the World Series to be canceled for the first time since 1904.⁴ MLB attendance did not exceed its 1993 peak until 13 years later in 2006.

BATRK’s Board (and John Malone) should not hope that history does not repeat itself and should instead capitalize on the MLB’s current momentum ahead of a potential extended lockout.

3. New tax code could disadvantage the Braves relative to privately-owned MLB teams.

IRC Section 162(m) currently limits public corporations to a $1mm compensation deduction per taxable year for the CEO, CFO, and next three highest-paid executive officers. Beginning in 2027, this will expand to cover five additional highly compensated employees. The Braves’ top five players are estimated to be paid ~$110mm next year.⁵ Thus, ~$105mm may soon be non-deductible for BATRK leading to an incremental annual tax liability of over $20mm. Every other MLB team, except the Toronto Blue Jays, is private and will not be subject to this tax. Therefore, the Braves will have less cash to spend on improving their roster putting the Braves at a competitive disadvantage if BATRK remains public.

4. We believe BATRK is a monopoly with scarcity value.

MLB is the second largest sports league in the world with over $13b of cumulative Revenue.⁶ MLB teams are mini monopolies over geographic regions and the league has not added a new team in nearly 30 years. Therefore, we view every MLB team as a monopoly with scarcity value. The Atlanta Braves are a premier MLB franchise owing to its 1) history as the longest continuously operating franchise in MLB history at 155 years, 2) prized brand covering one of the largest geographic regions with “Braves Country” representing 35mm+ potential fans, 3) winning culture with a record 23 division titles, 4) owned multimedia platform (BravesVision), and 5) surrounding ballpark village (The Battery Atlanta).⁷

The Battery Atlanta is over 3mm square feet of mixed-use development with 93% occupancy (or 98% excluding Pennant Park, which was acquired last year and is quickly boosting occupancy). At opening day of Braves’ new ballpark and The Battery Atlanta in 2017, MLB Commissioner Rob Manfred stated: “I do think it’s a model for other organizations…the Braves have done just an unbelievable job with those concepts”. Since its grand opening, the Braves/Battery model has inspired multiple MLB clubs to copy this success. Most recently, the Tampa Bay Rays’ new owner said the Battery was “the gold standard of what we want to build and develop here in Tampa Bay”.⁸ The Battery welcomes ~9mm visitors annually, which exceeds other MLB ballpark villages and even Disney’s Animal Kingdom.⁹ Like the Braves baseball team, the complementary Battery Atlanta is a unique asset benefiting from the captive Braves audience.

Few sports assets have this combination of a premium franchise paired with a unique real estate development. Hence, we believe BATRK would attract significant interest from acquirers.

5. Despite this, BATRK appears materially undervalued compared to recent transactions.

At its 2025 Investor Day, BATRK estimated The Battery was worth ~$1.3b. Pennant Park has increased its occupancy since then, but we assume $1.3b for conservatism. As highlighted below, this implies the Braves are being valued for only ~4x Revenue.

BATRK's Enterprise Value on 9/11/26	$	3,791
(-) Estimated Value of the Battery	$	1,300
Implied Value of the Braves	$	2,491
Braves LTM Revenue	$	641
Implied Braves/Revenue	3.9x

For perspective, the Angels are being acquired for ~10x Revenue.¹⁰ The Angels do not own their stadium or surrounding land, so this was the purchase price for only the team and its multimedia network (similar to BravesVision). Therefore, we separately value the Braves team and The Battery. The Braves should command a higher EV/Revenue multiple relative to the Angels, who 1) missed the playoffs in 16 of the past 17 years, 2) have the fourth oldest MLB ballpark, and 3) do not benefit from a ballpark village (like The Battery). As evidence, Sportico recently ranked the Braves as the sixth most valuable MLB franchise while the Angels were 13^th. Conservatively applying the Angels buyout multiple (10x) to the Braves Revenue implies BATRK is worth $109 per share equating to ~125% upside. If you more conservatively assume the Braves are only worth the Angels purchase price of $4b (or only ~6x Braves Revenue), this still suggests BATRK is worth $72 per share equating to ~50% upside as illustrated below.

	Angels			Angels
	EV/Rev			Price
Braves LTM Revenue	$	641		$	641
Angels EV/Revenue	10.0x			6.2x
Implied Value of the Braves	$	6,413		$	4,000
Estimated Value of the Battery	$	1,300		$	1,300
Implied BATRK Enterprise Value	$	7,713		$	5,300
2Q26 Net Debt	$	(616	)	$	(616	)
2Q26 Non-Controlling Interest	$	(12	)	$	(12	)
Implied BATRK Equity Value	$	7,084		$	4,671
BATRK Diluted Shares		64.7			64.7
Implied BATRK Fair Value per Share	$	109		$	72
Implied Upside		124	%		48	%

6. BATRK’s insiders (executives and directors) should be rewarded for superb execution.

Since 2016, BATRK’s insiders have driven a 12% Revenue CAGR and increased EBITDA from -$16mm to $65mm. Today, BATRK’s insiders have an equity stake worth ~$120mm. If BATRK sold for $72 per share, we estimate insiders would receive ~$200mm of proceeds (including CEO Terry McGuirk’s ~0.9mm shares gifted by John Malone in a sale). If BATRK sold for $109 per share, we estimate insiders would receive ~$345mm of proceeds. We believe insiders – as significant shareholders – should rightfully reap the benefit of the value they created along with all other shareholders.

We appreciate that most of MLB’s national TV rights agreements expire in December 2028 and their values could increase meaningfully at renewal. But, the Angels and Padres record sale prices indicate that acquirers are already paying a premium for that future potential upside. We strongly recommend the Board run a sale process to determine if BATRK suitors are also willing to pay similar premiums.

We also call on the Board to engage with Mr. Malone and gauge his appetite for a sale of the Company. If he is unwilling to sell and believes that BATRK is worth significantly more than its current trading price, we encourage him to submit a proposal to take the Company private.

We look forward to hearing from you and welcome the opportunity to discuss further.

Best Regards,
Chris Colvin, CFA
Founder and Portfolio Manager
Breach Inlet Capital Management, LLC

About Breach Inlet Capital

Breach Inlet Capital is a boutique investment firm seeking to compound investors’ capital at a high rate through a concentrated portfolio of small cap companies undergoing transformation. The firm was founded in 2016 by Chris Colvin and is based in Charleston, SC.

Disclaimer

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein in any state to any person. The discussions and opinions contained herein are for general information only, and are not intended to provide investment advice. Certain information included in this press release is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data. All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are “forward-looking statements,” which are not guarantees of future performance or results, and the words “will,” “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” and similar expressions are generally intended to identify forward-looking statements.

¹ Sources for team sales: Sportico, WSJ, ESPN
² Source: LINK
³ Source: LINK
⁴ Source: LINK; LINK
⁵ Source: Spotrac
⁶ Source: Sportico
⁷ Source: Braves 2025 Investor Day presentation
⁸ Source: LINK
⁹ Source: Braves 2025 Investor Day presentation
¹⁰ $4b Acquisition Price / $397mm Revenue per Sportico = ~10x Revenue