The Atlanta Braves are riding a baseball boom, with the lone publicly traded MLB team trading near record highs. But investors betting against the team have never been more aggressive.
Short interest in Atlanta Braves stock (NASDAQ:BATRA)(NASDAQ:BATRK) has tripled to 193% since the start of 2026 to $169 million, according to S3 Partners, as investors increasingly wager that a potential 2027 MLB lockout could knock the stock lower.
The thesis of short sellers is that a prolonged lockout, or work stoppage, will result in missed games. That could hurt team valuations and the stock in the short term, or as S3 Partners puts it, "pay the shorts."
Still, institutional investors and hedge funds have taken the other side of the stock, increasing their long positions in recent months, according to the report.
Will a Lockout Happen?
A lockout could happen as early as Dec. 1. The two sides, the owners and the players’ association, are currently far apart in negotiations.
Owners are looking for a salary cap, which the other three major North American sports leagues already have in place. The players’ union says a salary cap limits the upside and earning potential for professionals, as reported by USA Today.
The players’ association rejected the $245.3 million salary cap earlier this year. That among comes in higher than the NBA ($165.0 million) and below the NFL ($301.2 million). MLB has the longest season of the four major North American sports leagues, which likely factors into the arguments.
There are currently six teams over the $245 million proposed salary cap, with the Braves the lowest of the six at $258.5 million and the New York Mets highest at $319.2 million, according to Spotrac. The Mets and the Los Angeles Dodgers have been the most targeted teams of increasing the odds of a lockout with aggressive trades and free agency signing that will continue to increase their payouts in future years.
S3 Partners show that short interest in the Braves stock rose significantly after the salary cap proposal was rejected in June.
Major League Baseball had a lockout during the 21-22 season that lasted 99 days and delayed the start of the season, but ultimately no games were missed.
A players’ strike in 1994 lasted 232 days and saw the postseason and World Series canceled as one of the largest work stoppages in major league sports history.
The Long vs. Short Battle
The Atlanta Braves have become a battleground stock with increased holdings by hedge funds and institutional investors and increased short selling.
One key caveat for investors ahead of the Dec. 1 deadline is the finish to the 2026 MLB season.
The Braves currently sit in first place of the NL east with a 75-53 record. The team is currently projected to make the postseason. A lengthy run in the playoffs could boost the stock’s valuation and spotlight, benefiting the longs.
The team missed the playoffs last season, but had made the postseason seven straight seasons prior to last year. This includes the Braves winning the 2021 World Series as MLB champions.
This creates the dilemma of whether to invest in or against Braves stock based on this year’s success or failure ahead of the Dec. 1 deadline.
The news comes as sports team valuations prompt investors to look for ways to invest. With a limited number of public sports teams, valuations for those related stocks have rocketed to new highs.
Record prices paid for teams like the Los Angeles Lakers in the NBA, for example, have drawn attention to public sports teams like the Braves.
Photo: Peopleimages.com – Yuri A/Shutterstock
Login to comment