The New York Yankees and Apollo Global Management are in talks for the alternative asset manager to inject between $2 billion and $3 billion into the MLB club. It would be a combination of debt and equity, according to multiple people familiar with the details.
The Yankees and Apollo did not respond to requests to comment on the talks. Bloomberg was the first to report the discussions.
The investment would be in the Yankees parent company, Yankee Global Enterprises (YGE). YGE’s assets also include 10% of Serie A’s AC Milan, 10% of MLS’ New York City FC, about 16% of hospitality company Legends and 26% of regional sports network YES Network.
The funds would be used partly to refinance existing debt, with the equity component directed towards buying out some limited partners. The Steinbrenner family will maintain their control of YGE and the Yankees. MLB’s private equity rules cap investment at a 15% of a franchise.
The Yankees topped Sportico’s March MLB team valuations for the sixth straight year at $9.4 billion, including their stake in the YES Network and other related businesses. The Bronx Bombers ranked No. 7 among all global sports franchises.
Apollo had $1.03 trillion in assets under management as of March 31. Last year, it launched its new sports fund led by CEO Al Tylis, co-portfolio managers Rob Givone and Lee Solomon, and chief strategy officer Sam Porter.
The fund had already invested in the Mutua Madrid Open and Miami Open tennis tournaments, in partnership with Ari Emanuel and Mark Shapiro. Its biggest swing was buying control of LaLiga club Atlético Madrid at a $2.5 billion valuation; the deal closed in March.
“In addition to deploying the $6 billion or so in the Sports Capital Fund, I believe this ecosystem will generate $30 billion to $50 billion of origination opportunities,” Marc Rowan, Apollo’s co-founder and CEO, said during a February conference call to discuss the firm’s fourth-quarter results. Origination opportunities refer to possible deals where Apollo may invest or provide loans.