Thursday, October 27, 2016

Betting on the Braves

     Because the World Series is being played right now I want to take this time to talk about baseball. Specifically how you can invest in the Atlanta Braves. 

     I haven't written any posts in the last couple of days because I am as invested in the World Series as I have ever been. I am a huge Indians fan and got to go to Game 1. That was the greatest experience of my life.
Yesterday was the first time the Chicago Cubs won a World Series game since 1945 and they haven't won the whole enchilada since 1908. 1908!! The Cleveland Indians have been to the Series [1995, 1997] but have not won since 1948. So regardless of what happens history will be made. Go Tribe though. #RallyTogether.

Back to investing....BATRA is the stock symbol for Liberty Media Braves Group. Straight from finviz, 

          "The Liberty Braves Group, through its subsidiary, owns and
           operates Atlanta Braves Major League Baseball club, stadium,
           and associated real estate projects. The company is based in
           the United States. The Liberty Braves Group operates as a
           subsidiary of Liberty Media Corporation."

     To over simplify, the common man can own a stock that tracks the Atlanta Braves. I think that's freaking sweet. Like I said, I'm a big Indians fan and
ultimately an even bigger baseball fan. Favorite sport, America's pastime, blah blah blah, etc etc. On the very basic level I like this stock because I like baseball and think it's cool.

     On a more substantive level I like the Braves stock based on how they [Atlanta Braves baseball program] performed this year and their expected performance for next year. For the 2016 season, the Braves finished 5th worst overall with a disappointing 68 wins and 93 losses. They scored the second least amount of runs with 649. That's a measly 4 runs per game. That will rarely win you a ballgame when the pitching staff has an aggregate earned run average [ERA] of 4.51. Trust me when I say that is not a recipe for success. 

     Now you're probably saying to yourself, "okay so the Braves suck. Why would I want to invest my money in a team that doesn't win?" That was my initial thought as well, but then I did some digging. The biggest thing is that the Braves are moving from Turner Field to SunTrust Park and it is a masterpiece. It's huge, it's aesthetically pleasing, and it will bring in more revenue for the club. I read a stat somewhere, very valid so whether you believe it or not is up to you, that when a team moves to a new park the overall revenue is greater than it was the year before. They finished 22nd in average attendance at 24,949 people per home game.

     Also, the team is supposed to perform better than last year. They are 
already working toward the official off season and working out who they should pursue in free agency. Justin Verlander, the former Cy Young pitcher on the Detroit Tigers is a name being thrown around down south. To put it very plainly that name will sell tickets.

     Thirdly, they have a star rookie shortstop in the making. Dansby Swanson from Vanderbilt. He came up at the end of September and kicked butt. Fans are excited to see him turn into a stud and the team is trying to build around him I'm sure. 

My final thought on why I would invest in these guys is how they finished out the year. I mentioned their crummy record up above, but he way they finished the season was quite remarkable. Their general manager was fired mid season and interim manager Brian Snitker fired the team up. From May 17th, the Braves posted a .476 win percentage and finished the season 18-10. Thats a great way to end it and move into preparation for next season. 

     In summary. I like where the Braves are headed. It's hard to do worse than the did last year and their new ballpark should bring in some extra revenue. Looking at charts, now may not be the prime time to get in, but this is one that I'd hold for at least a year and my thought is why not now? 

Alright, I'm done. Let's Go Windians.

Edit: Darn Cubs. 

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