The family will sell at least 4% of Yankee Global Enterprises as part of Apollo Sports Capital’s $2.6bn debt and equity investment in the MLB franchise.
The Steinbrenner family is selling at least 4% of Yankee Global Enterprises (YGE), the New York Yankees‘ parent company, as part of the $2.6bn financing from Apollo Global Management announced earlier, Sportico reported.
Apollo’s investment combines debt and equity in YGE, with the Steinbrenners and some limited partners selling shares. Two people familiar with the details said the deal valued YGE at more than $10bn. The Yankees and Apollo declined to comment.
The family keeps full control of the franchise. Hal Steinbrenner remains managing general partner and the club’s MLB control person.
Terms of the investment in Yankees
YGE announced the agreement with Apollo Sports Capital affiliates on 11 August. Proceeds will support the franchise’s growth and refinance existing debt, and Apollo Sports Capital CEO Al Tylis will join the YGE board in a newly created seat.
The New York Post gave a different breakdown on 20 September, reporting that Apollo would hold a 16% stake split between roughly 8% in common equity and 8% in preferred stock that converts after four years. The paper valued the franchise at significantly more than $12bn and said the Steinbrenners would retain a little over 60%. One person close to the deal told the Post the family’s sale was a “de minimis” portion of no more than 3%.
Forbes reported the $2.6bn will be paid in tranches, including an initial payment, future share purchases and a $1bn loan. MLB rules limit private equity funds to 15% of a team’s equity.
“We welcome Apollo to the Yankees family,” Hal Steinbrenner said in August, adding that the partnership lets the club explore strategic opportunities.
Valuation and Apollo’s sports holdings
Forbes valued the Yankees at $8.5bn in March, the highest figure in MLB. Both reported deal valuations exceed that number.
Apollo held $1.05tn in assets under management as of 30 June. It launched a sports fund of about $6bn last year, which bought control of LaLiga club Atlético Madrid this spring at a $2.55bn valuation. The fund also holds a minority stake in Wrexham, the Welsh club owned by Rob Mac and Ryan Reynolds, along with investments in the Madrid Open and Miami Open tennis tournaments. Tylis said on 10 September that the firm is interested in an NFL stake.
At least 18 of MLB’s 30 teams had added private equity to their ownership groups before the Yankees deal, after the league opened to such investment in 2019.
George Steinbrenner led a group that bought the Yankees in 1973 for $8.8m, and his children took control after his death in 2010. The family is the longest-tenured ownership group in MLB. YGE’s wider business includes the YES Network, Legends Hospitality and a stake in AC Milan.
