As business booms for cost-cutting Braves, McGuirk aims for ‘top-5’ payroll

Atlanta Braves Holdings, the (indirect) owner of the local MLB franchise, held a conference call Wednesday to discuss third-quarter earnings results. Team executives reported that the business is doing a lot better than the baseball team.

They boasted about increased baseball revenue despite the losing season in 2025. They touted the growth of The Battery Atlanta real estate development. Braves president Derek Schiller said that “most every sports organization is trying to emulate our success in combining a stadium environment with a large, bustling mixed-use development.”

Said Braves chairman Terry McGuirk: “In a rare year where we did not make the playoffs, the strength of our brand and the passion of our fans remains strong.”

Once the trumpeting of business results was out of the way, the call turned to subjects that might interest fans who just want to see the Braves become World Series contenders again. Player payroll might be at the top of the list after the Braves reduced it this year for the first time since 2016 (not counting the shortened 2020 season).

Barton Crockett, an analyst with the Wall Street firm Rosenblatt, asked officials if there might be a “substantial change” in their approach to player payroll.

“I think I’ve stated in the past that our goals are to be a top-five salary team,” McGuirk said. “We are currently top-10 (and) haven’t been out of that in quite some time, out of that range. I think aiming for the top five is a place that I want to get to. I think we are capable of doing that.

“This is a very fluid decision-making concept. … I think you will see us quite active in the free-agent market and the trade market. We are a win-now team. We want to fill in the places where we might have a player that needs replacing.”

Goals are nice. Pledges probably sound better for Braves fans who’ve seen diminishing results from the team. The Braves haven’t won a playoff series since winning the World Series in 2021 and this year didn’t make the playoffs at all.

McGuirk left himself some wiggle room on player payroll, so we’ll see if his “fluid decision-making concept” results in an increase. The team’s $218 million payroll to end this season ranked ninth highest among MLB teams, according to Spotrac. The Braves finished 2024 with a $238 million payroll, seventh-highest in MLB.

The Braves have about $197 million in committed player salaries for 2026. Spotrac projects another $20 million for prearbitration and arbitration-eligible players for a total of roughly $218 million. To meet McGuirk’s (fluid) goal of a top-five payroll, the Braves probably need to add $30-$40 million in salaries before the start of next season.

His organization certainly isn’t cash-strapped.

Atlanta Braves Holdings reported third-quarter revenue of $312 million, up 7% from the same period of 2024. Baseball revenue increased 4% to $284 million, and mixed-use development revenue grew 56% to $27 million.

The Braves reported an adjusted OIBDA (operating income before depreciation and amortization) of $67 million, an increase of more than 113% from the third quarter of 2024. Baseball adjusted OIBDA was $50 million, up 105%.

The profitability was driven by increased revenue and, in part, decreased baseball operating costs. Braves CFO Jill Robinson said that was “primarily due to lower-than-expected major league player salaries.” The payroll certainly was lower than the team’s fans expected after president of baseball operations Alex Anthopoulos said it would increase from 2024 to 2025.

Because injuries contributed to the team’s underperformance in 2025, there’s no guarantee the Braves would have been better with a higher payroll. What’s certain is that the lower payroll boosted the bottom line. And baseball revenue increased in the third quarter despite lower attendance at home games thanks to increased prices on season tickets and sponsorship agreements, plus new sponsorships and “premium seating” options.

Last month, AJC columnist Ken Sugiura reported that some longtime fans of the team feel squeezed out by rapidly increasing prices for season tickets over the past few years. One Braves customer shared an email exchange with team vice president Andrew Walters in which Walters acknowledged that the price hikes “can feel excessive and disheartening” and said the team had heard “similar concerns from other longtime members.”

Crockett asked Braves officials about their pricing strategy for season tickets. Schiller said that “in some cases we go up a little bit, in some cases we go down a little bit.”

“You might see certain packages that are well below $20 (per game), on par with, say, going out to a movie or something like that,” Schiller said. “And if you are interested in a premium offer, you can certainly pay more than that, with the amenities and the location are going to be different.

“We are continuing to watch how the average ticket price looks and how we compare, contrast with other teams across Major League Baseball or even in our marketplace. And I would still say there is room for growth in that while still protecting some of those lower price points.”

Schiller was asked if he expects the team’s average revenue per ticket to increase for 2026.

“Our goal is going to be to continue to grow that because the cost of running a baseball team in most cases doesn’t go down every year,” Schiller said. “So, we are trying to keep up with that and trying to make sure that we have prices available for everybody.”

The cost of running the baseball team went down for the Braves through September of this year. They spent $470 million compared to $476 million during the same period of 2024. Revenue increased from $611 million to $671 million.