(Bloomberg) — Apollo Global Management Inc. is providing $2.6 billion of financing to the owners of the New York Yankees, the private capital giant’s largest investment to date in US sports.
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The deal, struck between the Major League Baseball franchise and Apollo’s sports investment arm, was announced on Tuesday and consists primarily of debt financing alongside an equity component. It confirms an earlier Bloomberg News report.
Proceeds will be used to support the growth of the franchise and refinance existing debt, according to a statement.
Based in the Bronx, the Yankees are the financial powerhouse of American baseball. Sportico values the franchise at more than $9 billion, placing it among the world’s most valuable teams. It’s also one of the most recognizable global brands, thanks to its history of star players like Joe DiMaggio, Mickey Mantle, Babe Ruth and Derek Jeter, and the NY insignia emblazoned on its merchandise.
The Yankees are owned by Yankee Global Enterprises, a company controlled by businessman Hal Steinbrenner and members of his family. The group has also invested in Italian football club AC Milan and Major League Soccer’s New York City FC. The Steinbrenner family are retaining full control of the Yankees.
The sports financing market is increasingly competitive, as firms including Arctos Partners, CVC Capital Partners and Ares Management Corp. step up their investments in leagues and franchises.
Apollo has been expanding its focus on providing long-term financing to sports leagues and clubs, while also taking ownership stakes. Its Apollo Sports Capital business, led by Al Tylis, launched a $5 billion initiative last year and has since become the majority shareholder of Spanish soccer club Atlético de Madrid.
Tylis will join the board of Yankee Global Enterprises as part of the financing deal.
(Updates with details of statement throughout.)
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