Major League Baseball (MLB) has raised the maximum stake private equity firms can hold in individual franchises from 15% to 20%, bringing the league in line with ownership rules already adopted by the NBA, NHL and MLS.
The change, finalised during the summer, allows institutional investors to take larger minority positions in MLB teams while keeping control with the franchise’s principal owner.
Under the updated rules, a private equity firm cannot hold more than 20% of an individual franchise or a larger stake than the club’s controlling owner. MLB bylaws require the controlling owner to retain at least a 15% interest in the team.
The move comes as institutional capital continues to expand across professional sports. Around 10 MLB franchises have formally incorporated direct private equity investments, while nearly 20 additional teams have some form of institutional investment relationship.
Recent transactions highlight the scale of the trend. Apollo Sports Capital made a reported $2.6 billion investment in the New York Yankees, while teams including the San Diego Padres and San Francisco Giants have also brought private equity investors into their ownership structures.
Apollo chief strategy officer Sam Porter said the capital can provide clubs with additional financial flexibility, including funding for growth, refinancing existing debt and broader balance-sheet solutions.
“They thought there could be a need for growth capital, refinancing existing debt, and just doing an overall holistic capital solution,” Porter said.
A different approach from the NFL
MLB’s revised framework also highlights the different approaches taken by the major US sports leagues toward private equity.
The NFL introduced its private equity framework last year with a 10% maximum stake for individual institutional investors, alongside tighter restrictions on which funds can participate.
MLB does not impose a numerical limit on the number of franchises a single private equity firm can back, provided its individual stake in each team remains at or below 20%.
The higher threshold gives MLB owners greater access to institutional capital while preserving control with the franchise’s principal ownership group.
Private equity has increasingly become a source of capital for professional sports teams, supporting areas ranging from debt refinancing and stadium investment to commercial expansion and the development of new revenue streams.