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.
The deal between the Major League Baseball franchise and Apollo’s sports investment arm consists of debt and equity, according to a statement Tuesday that confirmed previous Bloomberg News reporting. Proceeds will be used to support the growth of the franchise and refinance existing debt.
The sports financing market is becoming increasingly competitive, as firms including Arctos Partners, CVC Capital Partners and Ares Management Corp. seek greater exposure to leagues and franchises spanning the world’s most popular sports.
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 stars like Joe DiMaggio, Mickey Mantle, Babe Ruth and Derek Jeter, and the NY insignia emblazoned on its merchandise. The club has won 27 World Series titles in its history, but none since 2009, despite having deep pockets and a willingness to spend on premier players.
