Apollo in negotiations to buy majority stake in Atlético Madrid

In Spain, negotiations are underway for Apollo Global Management, an American private equity firm, to acquire a majority stake in the prominent soccer club Atlético Madrid. The club is currently controlled by Atlético Holdco, which owns 70.39% of the shares. This consortium includes CEO Miguel Ángel Gil Marín, who holds 50.82%, and president Enrique Cerezo, who owns 15.22%. Apollo's planned acquisition involves purchasing shares from current stakeholders, including Quantum Pacific and Ares Management, who will remain as minority shareholders. The transaction is also expected to come with a capital increase to support investments in club infrastructure. The valuation of Atlético Madrid is set at approximately €2.5 billion ($2.94 billion). For Apollo to secure a majority stake, their investment must exceed half of the total valuation. Following the acquisition, Apollo aims to spearhead significant developments such as the Ciudad del Deporte project, which intends to enhance the club's training facilities and revenue generation capabilities. This initiative has a projected overall cost of $5 billion, with a necessity for €800 million ($941.7 million) to finance the first phase, wherein the club will contribute €200 million ($235.4 million) from funds received from La Liga. In terms of management continuity, Apollo is not expected to alter the existing leadership of Atlético Madrid. Miguel Ángel Gil and Enrique Cerezo will remain in their roles, ensuring stability as the club transitions into a privately-owned entity. This development would mark a historic shift in Spanish football, as Atlético Madrid would become the first privately-owned soccer club outside the traditional structures maintained by Real Madrid and FC Barcelona. The stakes of this acquisition are high, particularly as Atlético Madrid has recently faced challenges on the pitch, struggling in the early part of the current season despite substantial investment in new player acquisitions, totaling €176 million ($207 million). Overall, the strategic partnership with Apollo could offer Atlético Madrid fresh capital and new pathways for growth, potentially enhancing their stature not only within Spain but also in international competitions. The ongoing discussions reflect a significant move in the business of football, encapsulating the intersection of sports, finance, and management in the modern era, while also showcasing how investor interest in soccer continues to evolve.