US investment fund Apollo Global Management Inc. is considering investing $1.25 billion in the Mexican soccer league, known as Liga MX, in exchange for a share of media revenues, Sportico reported Monday.
The private equity firm would seek 20% of Liga MX’s non-Mexican media rights profits over the next 50 years and submit a proposal as soon as this week, Sportico said, citing someone familiar with the plan. who did not identify.
As part of the deal, Apollo would also own 20% of a separate entity made up of the league’s commercial rights. A spokeswoman for New York-based Apollo declined to comment.
The private equity industry’s appetite for these kinds of deals is strong. Last year, $51 billion was spent globally on such sports acquisitions, with $22 billion deployed in Europe alone, according to PitchBook. Franchise valuations have skyrocketed in recent years and leagues around the world have turned increasingly to institutional investors.
In December, CVC Capital Partners reached a €2 billion ($2.1 billion) deal with Spain’s LaLiga, investing in a start-up company that gives it a share of broadcast revenues. In return, the clubs of the Spanish first and second division obtain money to invest in infrastructure, but also to pay debts and sign players.
Apollo’s offer of 1.25 billion would provide funds for clubs to use for academies, stadiums and other expenses, Sportico reported.
