The Yankees are nearing a deal that would eventually hand a whopping 16% stake in the venerable franchise to private equity giant Apollo Capital Management.
asserted
that → near → Management
The Steinbrenner family would relinquish a “de minimis” slice of its controlling equity, finalizing a transaction that will give the famed franchise a new, cash-rich partner, the Post has learned.
asserted
Post → relinquish → partner
The partnership structure makes Apollo the Yankee’s biggest equity owner after the Steinbrenner family, which will still own a bit more than 60% of the team.
asserted
which → make → team
Apollo’s $2.6 billion cash injection into Yankees involves both a debt and equity investment, and values the team at significantly more than $12 billion.
asserted
injection → involve → billion
Once the deal closes, possibly as early as this week, the Yankees will rank among the world’s most valuable sports organizations.
uncertain
Yankees → close → organizations
According to projections by limited partners involved, the Yankees will likely emerge as the most valuable baseball franchise, surpassing the $12 billion valuation of the Los Angeles Dodgers.
uncertain
Yankees → accord → Dodgers
The deal has been agreed to in principle by all the parties, but given the complex nature of the purchase, could be delayed for somewhat longer, these people say.
uncertain
people → agree → longer
Details of the official terms of the Yankees new ownership structure have yet to be reported.
asserted
Details → report → structure
It would end weeks of speculation into the details of the transaction, the outlines of which were disclosed last month with the Yankees’ announcement of a $2.6 billion investment from Apollo.
asserted
outlines → end → Apollo
The deal underscores the importance of Apollo to the future of the Yankees — including providing capital to buy players, pay down expensive debt, and provide a cash cushion in case of a baseball strike.
asserted
deal → underscore → strike
Baseball, like most professional sports, has been increasingly dominated by cash-rich Wall Street types either owning teams outright or through minority investments.
asserted
Baseball → dominate → investments
Al Tylis, who runs Apollo’s sports-fund, will join the Yankee Global Enterprises’ 13-member board.
asserted
who → run → board
The Steinbrenner family will retain controlling interest in the Yankees above 60% but will sell what one person close to the deal says is a “de minimis” portion of its controlling stake of no more than 3%.
asserted
person → retain → %
The deal that took shape over the summer involved limited partners for the team looking to monetize their investments for estate planning, layered with the changing ownership dynamics of baseball and the need for the Yankees to remain competitive in seeking roster telent.
asserted
Yankees → take → telent
Hedge fund impresario Steve Cohen owns the Yankees crosstown rival, the New York Mets, and is worth an estimated $26 billion.
asserted
Cohen → own → rival
With Cohen’s backing, the Mets have a payroll of around $380 billion, second only to the Los Angeles Dodgers.
asserted
Mets → have → Dodgers
The Dodgers are owned by Guggenheim Investment Group, an offshoot of the LA-based financial firm run by controlling partner Mark Walter.
asserted
Dodgers → own → Walter
Walter, a long-time financial executive and CEO of Guggenheim has been under pressure to deal with a cash crunch involving his insurance business.
asserted
Walter → deal → business
He is in the process of selling his stake in the Lakers for $12.5 billion to venture capitalist Josh Kushner, and former Disney chief Bob Iger, who will own a smaller slug in the team and manage its business operations.
asserted
who → sell → operations
The impetus of the Yankee’s deal with Apollo was more prosaic; a group of limited partners wanted to cash out of their investments for estate planning purposes, and Apollo was looking for an anchor investment for its newly created sports fund, these sources say.
asserted
sources → want → fund
Apollo, run by financier Marc Rowan, was a natural partner.
asserted
Apollo → run → Rowan
His $1 trillion fund recently started a sports-targeted investment pool with $6 billion to deploy and no major anchor investment.
asserted
fund → start → billion
Leading the negotiations for the Yankees was team chairman Hal Steinbrenner, the youngest son of the legendary owner George Steinbrenner, who cut the deal with Rowan and Tylis, these people add.
asserted
people → lead → Rowan
“This is no longer your father’s baseball game with hedge fund, PE and corporate money involved,” said one major league baseball source.
asserted
source → involve → ?
“The deal puts the Yankees on very firm footing.”
asserted
deal → put → footing
A spokesman for the Yankees had no immediate comment; a press rep for Apollo had no immediate comment.
asserted
rep → have → comment
Apollo’s portion of the deal was closed on August 11; the limited partners sale is now in its final stages.
asserted
sale → close → stages
The structure of the deal involves Apollo paying cash upfront to buy an 8% stake of the team immediately and getting preferred stock for the other 8% that can be converted into pure equity in four years.
asserted
that → involve → years
The cash will also refinance holding company bank debt at significantly lower cost, these people add.
asserted
people → refinance → cost
The PE giant will be owning the team through Yankees Global Management, an investment in the holding company that controls the Yankees as well as the Yes Network, and Legends Hospitality and the AC Milan soccer team.
asserted
that → own → Hospitality
PE firms are currently barred from owning more than 15% of any team according to the MLB rules, though the Yankees are expecting the league to waive the cap, these sources say.
uncertain
sources → bar → cap
The deal would rank as among the largest private equity transactions involving a sports franchise, allowing the Yankees to tap into Apollo’s nascent sports investment business, Apollo Sports Capital.
asserted
Yankees → rank → business
Its other investments include a majority stake in Spanish football club, Atletico Madrid, and a stake in Pickleball Inc,, the holding company for professional pickleball.
asserted
investments → include → pickleball
The Aporia
