Apollo (APO) Stock Surges as €2B Atletico Madrid Deal Kicks Off—Wall Street Bets on Soccer Like It’s 2021 Again
Private equity giant Apollo Global Management just scored a headline-grabbing deal—but its stock is the real winner today.
The Play:
Apollo’s €2 billion acquisition of Spanish football powerhouse Atletico Madrid sent APO shares rallying, proving even Wall Street can’t resist the siren song of European soccer valuations. Because nothing says 'diversified asset management' like overpaying for a trophy asset in a bubble-prone industry.
Why It Matters:
The deal screams post-pandemic PE logic—throw cash at premium sports franchises while retail investors pile into fan tokens. Atletico’s recent La Liga struggles? Irrelevant. The €2B price tag? A rounding error for Apollo’s $500B+ AUM. Traders are clearly betting this kicks off another wave of sports M&A madness.
The Bottom Line:
When private equity starts buying football clubs like they’re bored ape NFTs, maybe check your portfolio’s exposure to 'passion assets.' Beautiful game? More like beautiful leverage opportunity—until the music stops.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
New Venture
According to a report in the Financial Times, the deal values Atletico – traditionally the third biggest Spanish team after Real Madrid and Barcelona – at €2.5 billion including debt. However, Apollo did not disclose financial terms when announcing the deal.
Under the deal Apollo Sports Capital, its new $5 billion global sports investment company, will become the club’s majority shareholder.
Apollo said the deal WOULD reinforce the Atletico’s position among football’s elite and support its ambition to deliver long-term success for millions of fans worldwide. That means putting money into the teams and major infrastructure projects.
This includes the development of the Ciudad del Deporte, a new sports and entertainment district adjacent to the club’s Riyadh Air Metropolitano stadium.
It will also boost Apollo’s assets under management figures in what has been a tricky 12 monts for private equity given tariff and interest rates uncertainty.
The deal is expected to be completed in Q1 2026.
Rich History
Atletico. which has won the Spanish League 11 times in its 122-year history, made revenues of €410 million in 2024, up 12% year-on-year. Its sponsors include Saudi airline Riyadh Air, sportswear giant Nike and crypto trading platform Kraken.
It plays in the top division in Spain and in the main European competition the Champions League.
The deal marks the latest venture into European football by private equity firms, attracted by their stable and predictable revenue streams.
Indeed, over half of the 20 Premier League clubs in England have US investor participation, ranging from 100% ownership down to smaller stakes.
An example is American investment group ALK Capital which completed its takeover of Burnley by buying an 83% stake in 2020. American investor Todd Boehly and private equity firm Clearlake Capital completed a £4.25bn takeover of Chelsea in 2022.
The global sports sponsorship market is expected to reach $115 billion in 2025 and at the current growth rate, will top $160 billion by 2030, according to consultancy firm PwC.
Is APO a Good Stock to Buy Now?
On TipRanks, APO has a Moderate Buy consensus based on 7 Buy and 3 Hold ratings. Its highest price target is $173. APO stock’s consensus price target is $156.50, implying a 20.42% upside.
