Apollo Steps Up to the Plate With $2.6 Billion Yankees Stake

Apollo Global Management (NYSE:APO) is poised to become a major minority owner of the New York Yankees in a deal that would give the private equity firm an eventual stake of about 16% and value the baseball franchise at more than $12 billion. The New York Post reported that Apollo’s $2.6 billion investment would be split between equity and debt, making it the largest ownership position in the Yankees outside the Steinbrenner family. The Steinbrenners would retain control with more than 60% of the team. People familiar with the talks told the Post that the parties have reached a preliminary agreement, although the closing timeline could change because of the complexity of the transaction. The deal is also expected to provide liquidity to some of the Yankees’ limited partners, who are seeking cash for estate-planning purposes. Read Also: SEC Wants to Interview Guggenheim Staff as Probe of Mark Walter's Empire Widens Apollo’s investment would give the Yankees additional financial flexibility, including capital for player spending and potential balance-sheet moves. Some of the proceeds are also expected to refinance bank debt at the team’s holding company at a lower cost, the Post reported. Under the reported structure, Apollo would initially acquire roughly 8% of the Yankees. It would also receive preferred shares representing another 8%, which could convert into common equity in about four years. The Post reported that Apollo’s portion of the transaction was completed Aug. 11, while the sale involving limited partners is nearing completion. Hal Steinbrenner led negotiations for the Yankees, while Apollo is led by Marc Rowan, according to the Post. Al Tylis, who oversees Apollo’s sports-focused fund, is expected to join the 13-member board of Yankee Global Enterprises. The investment is being made through Yankees Global Management, the holding company that also includes the YES Network, Legends Hospitality and AC Milan, the Post reported. Major League Baseball generally limits private equity firms to a 15% ownership stake in a team, although the Post cited league sources as saying a waiver is expected for Apollo’s investment. Sports Investing Goes Mainstream Private equity and venture capital in sports have been an accelerating investment trend, where firms are looking to acquire minority or majority stakes in professional teams, leagues, and businesses, as company valuations grow. Thrive Capital took an initial stake in the San Francisco Giants in April. Separately, Thrive founder Josh Kushner and former Disney CEO Bob Iger agreed in August to buy the Los Angeles Lakers from Mark Walter at a valuation of about $12.5 billion. In March, a consortium comprising Blackstone (NYSE:BX), Bolt Ventures, Aditya Birla Group, and The Times of India Group agreed to acquire the Royal Challengers Bengaluru (RCB) cricket franchise. According to a report from Meketa, the global sports market reached $463 billion in revenue in 2024. It is projected to accelerate to just over $600 billion in revenue by 2028, and to nearly $863 billion by 2033. Drivers of this growth include “the rising value of media rights deals, increased fan engagement, the expansion of sponsorship and merchandising opportunities, and growth in sports-adjacent businesses,” the report stated. Photo: Peopleimages.com – Yuri A/Shutterstock Read Also: Mercer Advisors Swaps $1.6B of Private Credit for Cheaper Bank Loan, Saving $29M a Year