Warren Buffett Home Run? Billionaire's Baseball Bet Could Rise In Value With Minnesota Twins Sale

A Major League Baseball team is up for sale and while billionaire Warren Buffett likely isn't buying the team, he could benefit thanks to a small stake in another team.

What Happened: The sale of Major League Baseball (MLB) teams has been rare in recent years, which means a new sale could reset the valuation metrics of teams, an item that shareholders of Atlanta Braves Holdings BATRABATRK will be watching.

The Pohlad Family, which has owned the Minnesota Twins since 1984, announced Thursday that the team is up for sale.

Carl Pohlad, who passed away in 2009, bought the Twins for $44 million in 1984, as reported by Sportico. His children Jim, Bob and Bill inherited the team upon his death. Jim Pohlad currently serves as the team's controlling owner.

"After months of thoughtful consideration, our family reached a decision this summer to explore selling the Twins. As we enter the next phase of this process, the time is right to make this decision public," the team said.

The Twins won World Series titles in 1987 and 1991 as the Twins and the franchise previously won a title as the Washington Senators in 1924, prior to moving to Minnesota in 1961.

The team has made the MLB Playoffs in four of the past 10 years, winning only one playoff series over the same time period.

The Twins narrowly missed making the playoffs in 2024 with an 82-80 record. General Manager Thad Levine announced he was leaving after eight years with the team. Manager Rocco Baldelli is slated to return for a seventh season in 2025. One plus for the Twins is having managerial stability with only four managers over the last 38 years.

A negative for the team and a potential new owner will be trying to improve television revenue. A deal with Bally Sports North expired after the 2023 season and Diamond Sports Group paid a reduced rate to have Twins games in 2024. The league announced they will take over production and distribution of Twins games and negotiate future deals.

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Why It's Important: Ownership of baseball teams like many professional sports teams is often reserved for the wealthiest people.

Baseball has a history of corporations owning teams, a rule that it no longer allows other than the Toronto Blue Jays, owned by Rogers Communications RCI, who are grandfathered in.

Previously, other MLB teams had corporate owners, which included:

St. Louis Cardinals: Anheuser-Busch
Chicago Cubs: Tribune Company
New York Yankees: CBS
Seattle Mariners: Nintendo
Los Angeles Angels: Disney

Private equity companies can own minority stakes in MLB teams but can't own a team outright. MLB has allowed private equity investments for years, while the NFL is just now coming around to the practice to help improve investment opportunities for team owners.

The Twins are valued at $1.7 billion by Sportico, ranking 19^th of 30 MLB teams. Here are the most recent MLB team sales:

2024: Baltimore Orioles, $1.725 billion
2020: New York Mets, $2.42 billion
2019: Kansas City Royals, $1 billion
2017: Miami Marlins, $1.2 billion
2016: Seattle Mariners, $1.4 billion
2012: Los Angeles Dodgers, $2.15 billion

The Washington Nationals and Los Angeles Angels hired bankers for potential sales but did not end up selling the teams.

The low number of recent sales could put the Twins in demand with sports ownership often viewed as a strong investment opportunity.

This could be great news for the Atlanta Braves, which are valued at $3.4 billion, ranking sixth by Sportico.

The Braves holding company, which is publicly traded, has a market capitalization of $2.5 billion and enterprise value of $3.1 billion. While the team already trades under the Sportico valuation, the sale of the Twins at a premium to the valuation, it could see other MLB teams rise in the rankings.

Buffett owns a small stake (233,645 shares) in the publicly traded Braves via Berkshire Hathaway BRKBRK and has a love for the game of baseball. The billionaire previously owned a stake in a minor league baseball team and had interest in buying the Chicago Cubs.

BATRA Price Action: Atlanta Braves Holdings stock closed Thursday at $41.57 versus a 52-week trading range of $36.78 to $46.65. The stock is down 1.1% year-to-date in 2024.

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