Apollo is in talks with Atlético Madrid about taking a stake in Spain’s third-biggest football club in a move that would mark a rare foray into sport for the Wall Street investment giant. The talks emerged out of Atlético’s hunt for investors to back an €800mn real estate project next to its stadium, according to one club official.
The official told the Financial Times Apollo raised the
alternative idea of taking a stake in Atlético Holdco, the company that controls
the football club, during discussions over the real estate project. Two of
Atlético Holdco’s major shareholders — long-serving chief executive Miguel
Ángel Gil Marín, who owns 50.8 per cent, and club chair Enrique Cerezo, who
owns 15.2 per cent — are not willing to sell any shares, according to the
official.
However, the person added that they would be open to issuing
new equity to allow Apollo to acquire a stake. A deal could see US private
investment group Ares Management, which owns a 34 per cent stake in Atlético’s
holding company, selling some or all of its stake, according to people with
knowledge of the talks. A recent report from consultancy Football Benchmark
gave Atlético an estimated enterprise value of €1.9bn, meaning Ares could be in
line for a healthy return after paying €182mn for its stake in 2021. Ares
declined to comment.
As US investors have piled into football in recent years
Apollo has largely stayed on the sidelines. The alternative asset manager
considered financing bidders for Manchester United and previously agreed a
$1.25bn investment in the Mexican football league that later unravelled.
The Atlético official told the Pink ‘Un Apollo had not made
a firm offer to buy a stake in the club, formal negotiations are not under way
and there was no certainty an agreement would be reached. Apollo declined to
comment.
Atlético has qualified for the Champions League for 12 years
running and reached the final of Europe’s premier club competition twice in
that period. Figures from Uefa showed the number of football club takeovers
halved last year, as downward pressure on media rights and regulatory uncertainty
reduced the appetite for deals.
Atlético is seeking financing for a development project
named Ciudad del Deporte, or Sports City, around its Metropolitano stadium. The
club plans to develop facilities for activities including golf, climbing and
padel. Atlético’s aim is to raise €555mn of the €800mn it needs for the project
from private investors by offering them stakes in Parque Metropolitano, the
company that will manage it.
The club plans to invest €125mn of its own funds and a
further €120mn will come from an entity that controls the commercial income of
Spain’s top-flight football clubs. A spokesperson for Atlético said “the club
is proud to see the market’s response” to its real estate plans. Apollo’s talks
with Atlético were first reported by Spanish newspaper Expansión.
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