The Financing Gap
The significant appreciation in NFL franchise values has not translated into a commensurate loan-to-value ratio for most franchises. The value of the franchises is significant, but the loan-to-value ratio is extremely low. Most banks do not provide financing for these franchises. The leagues themselves have only recently begun to accept financing requests. The NFL permitted private equity ownership in 2023, creating a $2.5 trillion market that has barely begun to tap into the debt capacity of these organizations.
There is a certain permanency to the sports franchise model. There is a limited number of sports teams in operation. There are only 32 NFL franchises. There are no provisions for creating new franchises. The length of the media rights agreement between the teams and networks is extremely long, and the revenue is linked to inflation. The live sports market remains the only significant mass-audience segment in the streaming media era. Hence, the media companies are delving deeper into the checks. The sports market has maintained this level of growth for the past 6 decades, growing at a 13% compounded annual rate.
What Apollo Is Building
Atlético Madrido and Apollo Sports Capital
In September 2025, Apollo launched Apollo Sports Capital (ASC). This company will focus on providing permanent capital and financing to sports franchises, teams, leagues, venues, and media rights. The lifespan of this company will be indefinite. The goal is to provide permanent financing to support the long-term interests of the stakeholders involved. This will allow Apollo to build a portfolio of sports investments totaling $30 to $50 billion in origination volume over the next few years. This will include financing Wrexham AFC and having discussions with Atlético Madrid.
Why This Changes Everything
The significant capital Apollo is injecting into the sports market is positioning it as the leading company in the field. The fact that the largest alternative investment managers are investing in sports franchises means that professional sports organizations will operate and function as better businesses.
Although other firms have entered the market, Apollo has maintained a first-mover advantage in this significant market. The risk is considerable, but the potential rewards are even more significant. This is a generational opportunity for Apollo, and the risk is worth watching.
The game has changed. Now the critical question is how quickly everyone else catches up.
