Shares in private equity giant Apollo Global Management (APO) slid 1.6% today despite buying a majority stake in Spanish football giant Atletico Madrid for around €2 billion.
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New Venture
According to a report in the Financial Times, the deal values Atletico – traditionally the third biggest Spanish team after Real Madrid and Barcelona – at €2.5 billion including debt. However, Apollo did not disclose financial terms when announcing the deal.
Under the deal, Apollo Sports Capital, its new $5 billion global sports investment company, will become the club’s majority shareholder.
Apollo said the deal would reinforce Atletico’s position among football’s elite and support its ambition to deliver long-term success for millions of fans worldwide. That means putting money into the teams and major infrastructure projects.
This includes the development of the Ciudad del Deporte, a new sports and entertainment district adjacent to the club’s Riyadh Air Metropolitano stadium.
It will also boost Apollo’s assets under management figures in what has been a tricky 12 months for private equity given tariff and interest rate uncertainty.
The deal is expected to be completed in Q1 2026.
Rich History
Atletico, which has won the Spanish League 11 times in its 122-year history, made revenues of €410 million in 2024, up 12% year-on-year. Its sponsors include Saudi airline Riyadh Air, sportswear giant Nike (NKE) and crypto trading platform Kraken.
It plays in the top division in Spain and in the main European competition, the Champions League.
The deal marks the latest venture into European football by private equity firms, attracted by their stable and predictable revenue streams.
Indeed, over half of the 20 Premier League clubs in England have US investor participation, ranging from 100% ownership down to smaller stakes.
An example is American investment group ALK Capital, which completed its takeover of Burnley by buying an 83% stake in 2020. American investor Todd Boehly and private equity firm Clearlake Capital completed a £4.25bn takeover of Chelsea in 2022.
The global sports sponsorship market is expected to reach $115 billion in 2025 and at the current growth rate, will top $160 billion by 2030, according to consultancy firm PwC.
Is APO a Good Stock to Buy Now?
On TipRanks, APO has a Moderate Buy consensus based on 7 Buy and 3 Hold ratings. Its highest price target is $173. APO stock’s consensus price target is $156.50, implying a 20.42% upside.
