Atlético de Madrid owners are in advanced negotiations to sell a majority participation in the Spanish soccer club to Apollo Global Managementaccording to three people with knowledge of the agreement.
The American company could take control of the acquiring part of the club’s CEO, Miguel Angel Gil Marin, and its president, Enrique Cerezo, said one of the sources.
The company could also buy actions from the Ares Management investment fund, said a second source.
Apollo may not obtain a majority participation initially, but it is expected to obtain it at a later stage of the transaction, said a third person. This person added that the expectation is that the administration will remain and that the owners can sell only part of their participation.
The agreement would mark the latest sports onslaught of “Private Equity” companies, attracted by its stable and predictable revenue flows. The Spanish newspaper “Expansión” initially reported that negotiations involved a majority sale of participation, adding that the agreement would evaluate the club at 2.5 billion euros, about $ 15.6 billion.
The three sources, which warned that an agreement is not guaranteed and that negotiations can still fail, have spoken on anonymity because negotiations are private.
Apollo and Ares did not want to comment. Gil Marin and Cerezo also declined to comment through a representative.
Madrid division
The three investors have about 70% of the club through Atletico Holco. The rest belongs to the Quantum Pacific Transport and Energy Group, according to the club’s website.
A Quantum Pacific representative was not immediately available to comment.
Apollo has three months of exclusivity, until mid -October, to invest in the club, said one of the people.
He said he would need to make a capital increase of at least 60 million euros to invest in the cast and build sports and leisure projects around his metropolitan stadium in Madrid. He added that he would bring new partners to invest capital.
Apollo, listed in New York, which manages more than $ 800 billion in assets, is planning to launch a $ 5 billion sport investment vehicle, the Financial Times said.
The global sports sponsorship market is expected to reach $ 115 billion by 2025 and, at the current growth rate, will exceed US $ 160 billion by 2030, according to PWC consultancy.
