Wall Street short sellers are putting serious money behind the possibility that MLB’s next labor fight could hit the Atlanta Braves where investors will notice it most: the stock price.
According to reports, concerns about a potential MLB lockout have helped fuel a growing number of bets against the publicly traded Braves. The timing is notable because the team’s Class C shares have been moving in exactly the opposite direction.
Braves stock has climbed 34% this year and reached a record high, it was reports. Buyers have continued moving into the shares even as uncertainty builds around negotiations between MLB owners and players.
Short Sellers Put $170 Million on the Line
That uncertainty has attracted short sellers.
Short interest in Braves shares has roughly doubled since the MLB Players Association rejected the league’s proposed $245 million salary cap in May. At one point, short interest reached 6.8% of the shares available for trading.
Reports puts the value of those bearish wagers at roughly $170 million.
Short sellers are betting that a stock’s price will decline. In this case, the calculation centers on what could happen if baseball’s labor negotiations deteriorate enough to interfere with the 2027 season.
The Braves offer an unusual way to make that bet. They are the only publicly traded professional baseball team in the United States, giving investors direct exposure to an MLB franchise’s financial fortunes.
MLB’s Dec. 1 Deadline Is Closing In
And there is a deadline approaching.
Major League Baseball’s current collective bargaining agreement expires Dec. 1. If the owners and players cannot agree to a new deal, the result would be a lockout.
For investors betting against the Braves, a prolonged labor dispute could provide the catalyst they are anticipating. A disruption to the 2027 season could reduce games, attendance, and other baseball-related business, potentially pressuring Braves shares.
Of course, the stock’s current rise shows plenty of investors are taking the other side of that trade. While short interest has increased, Braves Class C shares have continued climbing.
The MLB Has Been Here Before
Baseball has been down this road before, with much more than stock prices at stake.
In 1994, players went on strike during a bitter labor dispute that included a fight over a proposed salary cap. The strike wiped out the remainder of the season and led to the cancellation of the World Series.
More than three decades later, the salary-cap issue is back in the middle of another labor confrontation. This time, Wall Street traders don’t have to wait for negotiations to finish before choosing a side.
Some are already betting $170 million that the Braves’ record-setting run will not survive the fallout if baseball stops.
