Apollo Global Nears Deal for 16% Stake in New York Yankees
Apollo Global Management (NYSE:APO) is close to finalizing a deal that would give it an 8% common equity stake and another 8% preferred stock position, totaling 16%, in the New York Yankees. The valuation of this transaction exceeds $12 billion, making it one of the highest valuations for any baseball team. Apollo's investment is structured as part credit and part equity under a $2.6 billion financing agreement announced earlier with the Steinbrenner family, who will retain over 60% control of the franchise. The deal aligns with Apollo’s strategy to diversify its massive asset base into sports teams that offer long-term cash flow from media rights contracts and limited supply dynamics in professional leagues. However, concerns remain about whether this investment can provide meaningful returns given the high valuation, lack of operational influence for Apollo, and uncertainty around future revenue streams like live streaming deals. Apollo’s shares have declined by 12% year-to-date amid broader worries over its private credit business performance.
Tickers: $APO
Topics: Apollo Global Management baseball ownership private equity sports investment