Atlético Madrid Eyes €2.5bn Valuation from Apollo Investment

Atlético Madrid is reportedly in advanced discussions with the US private equity giant Apollo Global Management regarding a significant investment deal that could value the Spanish football club at approximately €2.5 billion. This potential agreement would see Apollo take a minority stake in Atlético’s parent company, Atlético HoldCo, as the club seeks funding for an ambitious €800 million infrastructure project and its long-term growth.

These negotiations come as Atlético moves forward with plans to develop the "Ciudad del Deporte",” Sports City”, complex around the Wanda Metropolitano stadium. The project aims to include a range of commercial, leisure and sporting facilities designed to diversify revenue beyond matchday income. It is expected to be partly financed through external investment and capital raised by the club, which includes an estimated €555 million equity raise through a separate entity, Parque Metropolitano.

Apollo’s potential investment would mark its first direct involvement in a European football club. The proposed deal involves issuing new shares in Atlético HoldCo, rather than selling existing shares held by key figures, such as CEO Miguel Ángel Gil Marín, who holds approximately 50.8% and chairman Enrique Cerezo, who holds around 15.2%. Additionally, US firm Ares Management, which acquired a 34% stake in the club in 2021, may either exit or reduce its holding as part of this transition.

This development reflects the growing interest of US investors in European football, with private equity groups increasingly targeting clubs that have untapped commercial potential. Apollo, known primarily for its investments in energy, infrastructure and traditional finance, has previously explored opportunities in football, showing interest in clubs like Manchester United and teams in Mexico’s Liga MX, but has yet to finalise a deal, making Atlético a potential first for them.

For Atlético, this investment could provide essential funding to help realise the Sports City project and strengthen its financial base. The new complex is viewed as a long-term strategy to boost commercial revenue streams and enhance the club’s overall valuation, while also modernising its infrastructure.

However, the deal could encounter potential complications. Governance arrangements would need to be managed carefully, especially with multiple investors involved and UEFA's regulations on multi-club ownership and financial fair play at play. The club also carries a significant debt load, which could influence how the new capital is allocated.