Apollo Inks $2.6 Billion Financing Deal With the Yankees

Summary

Randall Williams discusses Apollo's $2.6 billion financing deal with the New York Yankees, the largest private equity investment in US sports to date. He explores the undisclosed valuation, implying it likely exceeds $13 billion, and highlights the broader trend of PE firms investing in sports franchises. Williams also raises concerns about a potential MLB lockout next year and the limited track record of PE exits in sports, which could pose liquidity risks as franchise values climb.

• Apollo provides $2.6 billion in debt and equity financing to the Yankees, the largest US sports PE deal.
• The transaction implies a Yankees valuation above $13 billion, though exact terms were not disclosed.
• MLB faces collective bargaining negotiations with a possible lockout that could cancel next year's season.
• MLB currently allows private equity firms to own up to 15% of a franchise.
• PE investment in sports has grown rapidly, but few exits have occurred, raising questions about future liquidity.
• Yankees ownership sought the capital, and there is strong interest in buying stakes in major sports teams.