Major League Baseball Increases Private Equity Ownership Limit to 20% to Align with League Standards

Major League Baseball (MLB) owners have voted to raise the league’s private equity ownership limit on clubs to 20%, up from the previous 15% threshold.

The adjustment, which was finalised during the summer months, brings MLB’s institutional investment regulations into direct alignment with major domestic sports properties including the NBA, NHL, and MLS, which maintain a 20% maximum cap for individual private equity firms.

Under the updated guidelines, private equity entities are restricted from holding a larger stake than a franchise’s controlling owner, who is independently required by league bylaws to retain a minimum ownership share of 15%.

Discussing the operational and financial rationale behind the capital injections, chief strategy officer at Apollo, Sam Porter, said: “They thought there could be a need for growth capital, refinancing existing debt, and just doing an overall holistic capital solution to give them various levers to pull financially to help grow the club.”

“What they do with it, they have a lot of latitude and leeway to use that to help grow the club and grow the business, and obviously standard refinancing of existing debt is part of that,” Porter said.

The regulatory revision arrives amid a broader wave of institutional capital integration across professional sports leagues. Approximately ten MLB franchises have formally incorporated direct private equity investments, while nearly twenty clubs maintain auxiliary institutional connections.

Recent high-profile transactions underscore the shifting capital landscape, most notably Apollo Sports Capital’s landmark USD2.6 billion (AUD3.6 billion) investment into the New York Yankees, alongside minority stake integrations across properties such as the San Diego Padres, San Francisco Giants, and the Athletics’ partnership with Mark Cuban’s Harbinger Sports Partners.

Unlike the National Football League, which initiated its private equity framework a year ago with a restrictive 10% cap and a stringent limitation on pre-approved institutional funds, MLB imposes no numerical limit on the total number of franchises a single private equity firm can back, provided each individual stake remains at or below the 20% ceiling.

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