Apollo Global Management Plans Strategic Entry into Sports with $5 Billion Investment Vehicle

Apollo Global Management is planning to launch a $5 billion sports investment vehicle as it looks to deepen its exposure to a sector that is attracting a growing amount of funding from the world’s largest private capital groups, according to a Financial Times report. The move positions the New York-based asset management giant at the forefront of what industry experts describe as a transformative period for sports investing.

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The Apollo Sports Strategy

Apollo will hire new employees to lead the strategy, which will focus on lending to sports leagues and teams and buying stakes in clubs, according to sources familiar with the matter. This represents a significant strategic expansion for the firm, which currently manages more than $800 billion in assets under management.

Leadership Vision

Marc Rowan, Apollo’s CEO and Co-Founder who has led the company since March 2021, brings extensive experience from his decades-long career that began at Drexel Burnham Lambert. Known internally as “the professor,” Rowan has overseen a massive strategy shift since taking charge, with Apollo’s stock jumping 89% during his tenure. As of November 2024, Forbes estimated his net worth at $8.8 billion, underscoring his successful track record in alternative investments.

Previous Sports Connections

The firm isn’t entirely new to sports investments. Apollo recently held talks with the lead shareholder of Atletico Madrid about a potential investment in the Spanish top-tier football club in July, demonstrating the company’s existing interest in high-profile sports properties. Additionally, football Hall of Famer and former USC athletic director Lynn Swann is on the Apollo board of directors, as is co-founder Joshua Harris, who is part-owner of the Philadelphia 76ers and New Jersey Devils, among other teams, through Harris Blitzer Sports & Entertainment.

The Booming Sports Investment Landscap

Market Transformation

Major U.S. sports leagues are increasingly allowing private equity funds to acquire minority stakes in teams, including ownership across multiple teams and leagues. This regulatory shift has opened unprecedented opportunities for institutional investors. In August 2024, the U.S. National Football League (NFL) owners voted to allow private equity funds to buy stakes in teams, permitting up to 10% to be owned by a certain permitted list of funds.

The NFL’s new rules require specific parameters: funds must hold assets for at least six years and must take at least a 3% equity stake in the team. Funds are permitted to purchase stakes in up to six teams, and the interests in the teams are purely passive and do not include voting or other control rights.

Early Success Stories

These rule changes have already generated significant activity. Ares Management acquired 10% of the Miami Dolphins (team valued at $8.1 billion) and Arctos Partners purchased a 10% stake in the Buffalo Bills, setting precedents for the types of deals Apollo might pursue.

Competitive Landscape

Apollo isn’t alone in recognizing this opportunity. Mark Cuban recently launched Harbinger Sports Partners, a $750 million fund that will focus on minority stakes in U.S. sports franchises, looking to acquire positions of between 1% and 5% in 92 franchises with deal sizes ranging between $50 million and $150 million.

Industry Growth Drivers

Media Rights Revolution

The takeaway for investors is that demand for sports content remains high as competition between tech giants and traditional media drives up valuations for broadcasting rights. Streaming platforms are creating new revenue opportunities, with Netflix seeing 60 million households tune into its first foray into live boxing in November 2024 when it streamed Mike Tyson taking on Jake Paul.

Valuation Surge

Sports are increasingly viewed as an asset class with high investment potential, attracting significant activity from private equity and other investors. Premium sports properties continue to show unique market resilience to the macroeconomic headwinds impacting mergers and acquisitions (M&A) across industries.

Global Expansion

Women’s sports growth: With women’s sports gaining greater popularity and revenue, expect the investment opportunities in this area to continue to expand. Additionally, there are growing opportunities for private equity emerging across European football and an improving environment for investors seeking an entry point.

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Apollo’s Strategic Positioning

Financial Powerhouse

Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. As of 2025, the company had $840 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets.

The firm’s recent fundraising success demonstrates its market position. Apollo announced the final close of Apollo S3 Equity and Hybrid Solutions Fund I with approximately $5.4 billion in commitments in May 2025, exceeding the target and bringing total capital raised across the Apollo S3 platform to nearly $10 billion since launching in August 2022.

Diversified Investment Approach

Apollo’s sports fund represents part of a broader strategy. In June 2024, Apollo announced the acquisition of a 49% equity interest in a joint venture entity related to Intel Ireland’s Fab 34 for €10.1 billion ($11 billion). The firm has also been active in other sectors, acquiring Barnes Group in January 2025 and agreeing to acquire real-estate investment company Bridge Investment Group for $1.5 billion in February 2025.

Investment Strategy and Focus Areas

Target Investment Areas

Beyond traditional leagues, emerging sports like pickleball, cornhole, and electronic sports (esports) are gaining traction, offering private equity investors an opportunity to engage with sports outside the entrenched, expensive traditional leagues. Ancillary opportunities include investments related to media, sports betting, digital assets, artificial intelligence (AI), and data analytics, as these areas continue to mature and integrate with sports.

Market Dynamics

Unlike other sectors where private equity can exert control over operations and steer strategy, professional sports are tightly governed. Most leagues cap institutional ownership—often allowing only minority, non-controlling stakes—and impose strict rules around ownership eligibility, capital calls, and conflict of interest restrictions.

However, capital has been flowing into segments like media rights, training platforms, youth sports infrastructure, and compliance technology—areas offering stronger control, scalable growth, and clearer revenue potential.

Market Outlook and Future Trends

The “Barbell Effect”

The sports investment market is expected to experience increasing divergence in 2025, with capital flowing disproportionately toward two distinct categories: premium, established properties and high-growth, emerging sports. This creates opportunities across the spectrum of sports investments.

Institutional Capital Growth

The sports industry—valued at more than $3 trillion globally—is expanding well beyond the teams themselves, and as capital becomes more disciplined, tapping into the infrastructure and emerging sectors around sports is becoming one of the most promising paths to sustainable, outsized returns.

College Sports Evolution

The last few years has seen seismic changes in Division I college athletics—from the NCAA’s introduction of name, image and likeness (NIL) payments for college athletes to the establishment of the transfer portal, creating new investment opportunities in collegiate sports.

Challenges and Considerations

Regulatory Complexity

Part of the challenges Apollo and other institutional investors face is that team and league deals bring more complexity than traditional private equity investments. Sports organizations may insist on full disclosure of fund investor identities, as well as place restrictions on owning stakes in certain betting-related businesses and in enterprises representing athletes.

Historical Perspective

In an agreement with Harris disclosed in a Securities & Exchange Commission filing last year, Apollo indicated Harris’ family office didn’t need pre-approval for “any investment in a sports team, franchise, league, organization or substantially related business, because these investments are not considered appropriate investments for the Company’s clients”. This new fund represents a significant shift in the firm’s attitude toward sports investments.

Global Implications

International Opportunities

Apollo’s sports fund comes as international markets are also heating up. Apollo Global Management previously proposed a $1.25 billion investment in Liga MX, the Mexican league, asking for 20% of profits from international broadcast rights, demonstrating the global scope of sports investment opportunities.

Technology Integration

The serialization of sport is another trend to watch, with the Netflix documentary series Formula 1: Drive to Survive illustrating the potential to tap new fan bases through reality TV-style programming, creating additional revenue streams beyond traditional sports consumption.

Conclusion

Apollo Global Management’s planned $5 billion sports investment vehicle represents a strategic bet on the continued growth and professionalization of the sports industry. As private equity firms, sovereign wealth funds, and other investors seek new avenues for growth, the sports arena offers a promising and dynamic landscape.

With robust deal flow and sustained interest from institutional investors, private equity (PE) firms and high-net-worth individuals continuing to underscore the sector’s enduring appeal, Apollo’s entry into dedicated sports investing reflects broader industry trends toward viewing sports properties as legitimate alternative investment assets.

The fund’s success will likely depend on Apollo’s ability to navigate the unique regulatory environment of professional sports while leveraging its extensive experience in alternative investments to identify undervalued opportunities in an increasingly competitive market. As sports valuations continue to climb and leagues become more open to institutional investment, Apollo’s timing appears strategically sound for capitalizing on this evolving asset class.

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By: Montel Kamau

Serrari Financial Analyst

2nd September, 2025