Why Are the Atlanta Braves Facing a $19 Million Tax Bill?

Back in 2021, the Atlanta Braves were living the dream. Truist Park was alive with chants, hot dogs were flying off the grill, and champagne was popping in the clubhouse. A World Series title brought glory back to a franchise rich in baseball history, and fans could finally chant “Chop On” with more than just hope. But fast forward to 2025, and the team’s biggest opponent isn’t the Dodgers, the Phillies, or even their division rival Mets. It’s the IRS. And this time, there’s no rain delay.

From World Series Glory to Tax Code

Here's the pitch: a tax rule, quietly passed as part of President Biden’s pandemic relief bill, is about to go live in 2027. Its target? Big public corporations pay their top five employees big bucks. For the Atlanta Braves, the only publicly traded team in Major League Baseball, that means players like Ronald Acuña Jr., Matt Olson, and Austin Riley just became million-dollar liabilities. Under the new rule, only $1 million of each top-paid player’s salary can be deducted as a business expense. The rest? Taxable. With $96 million in the books for their top five stars in 2027, the Braves are staring down a $19.1 million tax hike, and they’re doing it alone.

Other Teams Safe at Home

Here’s where it gets juicy. Teams like the New York Mets and Philadelphia Phillies? Completely untouched. Why? Because they’re privately owned. Steve Cohen (Point72) and John Middleton (cigar mogul money) can still deduct every penny paid to their MVP-caliber rosters, including the Mets' newest golden goose, Juan Soto, who recently inked a $765 million, 15-year mega deal. Same goes for the Toronto Blue Jays, sort of. They’re technically owned by a public company—Rogers Communications—but it’s a Canadian one. That makes them immune to the U.S. tax slap, leaving the Braves out in the cold like a fan who bought tickets for a rainout.

From Dugout to Deadline

Rewind to the 1990s. President Bill Clinton wanted to crack down on corporate fat cats, so the IRS limited deductions for executive pay to $1 million. But there were loopholes big enough to drive a team bus through. Fast forward to the 2020s: COVID-19 hits, relief bills fly, and Congress decides to close those gaps, for real this time. The update broadened the scope to include any top-paid employees, not just suits in the C-suite. That’s how we got to this dugout dilemma. The rule was passed, but with a delay baked in until 2027, giving teams like the Braves a ticking clock and not much of a bullpen.

Lobbying for a Save

In February, the Braves hired a pair of lobbyists to plead their case in D.C. The Problem is, both Democrats and Republicans like the rule. For Republicans, it’s a way to raise revenue without touching small businesses. For Democrats, it’s about curbing elite pay perks. And then there’s Madison Square Garden Sports, the only other sports entity that’ll get hit, thanks to owning the Knicks and Rangers. But don’t expect a buddy comedy here. MSG is a political pariah, thanks to a sweetheart state tax deal from the '80s that’s saved them $1 billion in property taxes. Not exactly the wingman you want on Capitol Hill.

Trading Public for the Minors

Theoretically, yes. But good luck with that. The Braves were spun off from Liberty Media in 2023, riding high from that World Series win and stacked with stars on long-term deals. But while NBA and NFL teams have been changing hands at record prices, baseball isn’t seeing quite the same action. The Baltimore Orioles sold for $1.7 billion in 2024—$700 million less than what Cohen paid for the Mets in 2020. Meanwhile, the Washington Nationals have been on the market since 2022… with no takers. In other words, selling the Braves now might be like trying to offload season tickets after your ace pitcher goes on the IL.

The Final Strike

The IRS rule may have been aimed at trimming fat from bloated executive paychecks, but it’s caught one baseball team in the crosshairs. With no MLB allies, no Canadian loophole, and a Congress that’s more interested in taxing Goliath than saving David, the Braves are stuck with a multimillion-dollar problem that other teams can dodge like a nasty slider. Will they find a legislative miracle before 2027? Or will the taxman become the team’s most consistent opponent? For now, it’s three strikes, and you’re taxed. Want the sharpest stories in your inbox? Join the MYCPE ONE Insights crew today!