The New York Yankees are poised to finalize a deal transferring a 16% stake of the franchise to private equity firm Apollo Global Management, marking one of the largest private equity investments in professional sports to date. The transaction, which values the Yankees at just over $12 billion, would position Apollo as the team’s second-largest equity holder behind the Steinbrenner family, who will retain a controlling stake of more than 60%.

The agreement, announced last month and nearing completion, includes both a debt and equity component. Apollo’s $2.6 billion cash infusion is designed to provide the Yankees with capital to reduce holding-company debt, deepen financial reserves, and support player acquisitions. The investment underscores the growing influence of Wall Street and private equity in professional sports, a shift reflected in other franchises such as the Los Angeles Dodgers and New York Mets.

Under the terms disclosed, Apollo initially purchased an 8% equity stake outright and obtained preferred stock for an additional 8% stake convertible into common equity after four years. This phased structure allows Apollo to gradually increase its ownership share within Major League Baseball’s ownership rules, which currently limit private equity firms to a maximum 15% stake in any team. Reports indicate MLB is expected to grant a waiver to this cap for the Yankees’ deal.

Apollo’s involvement extends beyond the baseball club itself, coming through Yankees Global Enterprises, the holding company that controls the Yankees as well as associated businesses including the YES Network, Legends Hospitality, and the Italian soccer club AC Milan. Al Tylis, head of Apollo’s sports investment fund, is set to join the Yankees’ 13-member board, bringing private equity expertise to the franchise’s governance.

The deal emerged after a group of the Yankees’ limited partners sought liquidity for estate planning and investment monetization. At the same time, Apollo, led by financier Marc Rowan, was launching a dedicated sports investment fund and sought a major anchor asset. Negotiations were led by Yankees chairman Hal Steinbrenner and Apollo executives Rowan and Tylis.

With this capital raise, the Yankees are expected to surpass the Los Angeles Dodgers as Major League Baseball’s most valuable franchise. The infusion also bolsters the team’s financial position amid broader industry uncertainties, including labor negotiations and escalating player salaries. The deal reflects a broader trend of private equity and hedge funds acquiring stakes in sports franchises, heightening competition among teams backed by deep-pocketed investors.

While the Steinbrenner family’s controlling position will remain largely intact, they will cede up to a 3% share of their controlling equity to Apollo. The transaction, which may close imminently, is subject to final regulatory approvals and the customary complexities of such high-profile investments.

The Yankees did not provide immediate comments, and Apollo declined to comment publicly on the details of the deal.