Apollo’s $6 billion sports push did not start with Apollo Sports Capital. By the time the platform launched, the firm had already deployed approximately $17 billion across teams, media rights, stadiums and league financing.
Apollo has since lent £80 million to Nottingham Forest, increased its financing of Kia Joorabchian’s Sports Invest Holdings to £55 million, bought into Wrexham, backed Ari Emanuel’s MARI and taken control of Atlético Madrid.
Apollo lends where it can secure the debt against valuable assets, takes equity when it sees greater upside and buys control when a club, stadium and surrounding development create several ways to make money.
The opportunity extends beyond ownership. Professional teams typically carry debt equal to around 10% of their value, compared with 40% to 70% in industries such as real estate and healthcare. Apollo believes this gap could create a financing market worth as much as $2.5 trillion.
Marc Rowan (CEO) says the platform could eventually generate another $30 billion to $50 billion of transactions.
Apollo is already testing how far the model can stretch, financing loss making clubs, accepting racehorses and player representation contracts as collateral and backing major stadium developments.
The question is whether sport can support much more debt without weakening the businesses Apollo is financing.
The full report breaks down Apollo’s sports portfolio, how each deal fits its wider investment strategy….