Apollo Backs the Yankees With $2.6 Billion in Financing

Apollo Sports Capital is providing $2.6 billion in debt and equity financing to Yankee Global Enterprises, bringing the private-equity firm in as a new strategic backer of the New York Yankees’ holding company.

The transaction will help fund growth initiatives at the franchise while refinancing existing borrowings, according to Yankee Global Enterprises, which announced the deal Tuesday.

The deal is expected to close imminently and will add Al Tylis, CEO of Apollo Sports Capital, to the Yankee Global Enterprises board, expanding it by one seat.

The Steinbrenner family will retain full control of the Yankees, with Hal Steinbrenner continuing as managing general partner and the team’s MLB control person.

Read Also: Trump’s Rare-Earth Gamble Has New Private-Market Winner "We welcome Apollo to the Yankees family," Steinbrenner said. "We are continually seeking ways to strengthen our positioning, and this partnership allows us to explore pursuing strategic opportunities." Tylis called the Yankees "one of the most iconic franchises in sports" and said Apollo was "privileged" to partner with the team.

He added that the firm looks forward to supporting the organization’s pursuit of championships.

Apollo Partner Robert Givone described the transaction as "precisely the kind of bespoke capital solution Apollo Sports Capital was built to deliver," adding that the firm intends to be a long-term partner to the franchise.

Launched in 2025, Apollo Sports Capital invests in and provides financing to sports and live-event businesses globally.

Private Equity Buys Up Professional Sports The deal comes as private equity firms have become increasingly active in professional sports, including through investments and acquisitions of franchises in recent months.

In May, The Cleveland Browns sold 10% of the club at a valuation of more than $9 billion to private equity firm Arctos Partners.

Thrive Capital also bought a small stake in the San Francisco Giants through a new holding company called Thrive Eternal.

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.

Ares Management Corp., Apollo Global Management (NYSE: APO ) and Sixth Street Partners are reportedly having early-stage conversations regarding the National Basketball Association’s (NBA) European expansion.

Earlier this year, KKR & Co. (NYSE: KKR ) entered into a definitive agreement to acquire Arctos Partners, an institutional investor in professional sports franchise stakes.

Photo: Shutterstock/Kim Reinick Read Also: Brookfield, Warburg Pincus Lead $43.3 Billion July Surge in Private Equity Deals