Apollo Sports Capital Became Atlético Madrid’s largest shareholder After acquiring the majority of the capital in an operation announced this Monday. The company is (specifically) a subsidiary of Apollo, an American alternative asset investment fund that manages a portfolio of approximately $908 billion.
The strategy, which surfaced in mid-September, represents a complete transformation for the Spanish Football League. Another step towards economicization of sportshas become the coveted target of the world’s largest asset management company.
While national soccer teams already have foreign investment funds (such as Espanyol’s owner VSP), never before in the history of the sport has a club been in the hands of a large company like Apollo. something about it It’s starting to become more and more common in competitions like the Premier League (Bournemouth, Burnley and Chelsea own investment funds).
Apollo has already invested $17 billion in assets related to the sports world.from sports and entertainment companies to media rights, stadium and league financing. Two of the most famous are his participation in the Mutua Madrid Open or the Miami Open Tennis. In the soccer world, a three-year loan worth 80 million pounds to Nottingham Forest (Premier League) stands out for its high interest rate of 8.75%. British clubs offered assets such as stadiums as collateral for operations.
In Atlético’s case, Apollo has direct access to the club’s premises. This investment will be the “flagship” of the fund’s sports portfolio. This ensures that there is no intention to create timeshare structures for football clubs (such as City Group, which controls Manchester City, Girona, Troyes and Palermo).
The New York-based multinational will retain Miguel Ángel Gil (CEO) and Enrique Cerezo (chairman) on the board of directors and will provide vital funding to enable the club to implement its ambitious project to build a sports city around its stadium. your idea is A long-term project that invests in both equipment and large-scale infrastructure.
A booming market
Large asset management companies appeared in the soccer world at a time when the market was booming. Player transfers exceeding or reaching $100 million are becoming increasingly common, and investment funds see them as potentially lucrative. Funds provide money quickly, but interest rates are often high And they go where traditional investors wouldn’t go because of the risks inherent in sports (strange seasons, divisional relegations, injuries, etc.).
Asset management companies like Apollo They see a growing vein in football that they can profit from. Businesses such as the $500 million that Ares (also a shareholder in Atletico Madrid) provided to Chelsea in 2023 and the $100 million that PGIM refinanced Wolverhampton’s debt are good examples.
Perhaps the most well-known case in Spanish football is CVC fundIn exchange for a $2.1 billion investment, it took over 8.25% of La Liga broadcast rights for the next 50 years. Funds that clubs can allocate to infrastructure improvements, international development and, to a lesser extent, debt reduction and increased salary limits.
About The Author
