Sixth Street Partners has acquired a stake in the San Francisco Giants, marking its first investment in Major League Baseball and signalling renewed private equity interest in the league, despite looming uncertainties around financial reforms and media rights.

MLB, which opened its doors to private equity in 2019, has become a focus for investors seeking resilient assets in the sports sector. As of now, 18 of the league’s 30 teams have ties to private equity, with 10 receiving direct investment. Arctos Partners, another active player, holds stakes in five franchises.

The latest developments come at a time of transformation for MLB. Collective bargaining negotiations in late 2026 could introduce a salary cap—something the league has historically lacked. Meanwhile, the erosion of local media revenues and the expiration of national broadcast deals in 2028 are forcing a rethink of the league’s commercial model.

“Baseball remains a great asset with great sports content,” said Michelle McKenna of Evercore, who noted that private capital could “smooth this transition period” and help navigate digital and operational changes.

Private equity firms are not only funding player payroll indirectly, but also contributing to infrastructure upgrades, in-stadium experiences, and digital expansion. These enhancements are becoming increasingly critical as teams work to engage younger audiences and modernise operations.

“MLB needs to get its house in order,” said Neil Barlow, a partner at Clifford Chance. “Institutional investors aren’t going to commit when it only fuels an arms race of talent.”

With the NFL and other leagues now permitting minority PE stakes, MLB’s early openness continues to attract attention. Sixth Street’s latest move underscores a growing appetite among institutional investors to secure strategic footholds in elite sports properties, even as financial reforms loom on the horizon.

Source: CNBC