Sixth Street acquired a 10% stake in the San Francisco Giants, marking another major private equity investment in Major League Baseball.

The deal, approved by MLB on Monday, provides the Giants with capital to upgrade Oracle Park, enhance training facilities, and support real estate development near the stadium.

While financial terms were not disclosed, the team was last valued at $3.8bn by Forbes. The Giants, owned by a syndicate of 35 investors led by Greg Johnson, join a growing number of professional sports franchises tapping private equity for capital.

Baseball has been at the forefront of private equity involvement, with over half of its 30 teams now partnered with investment firms. Arctos, another private equity group, already owns 2% of the Giants and has stakes in the Houston Astros and San Diego Padres.

Sixth Street has aggressively expanded into sports, holding investments in the NBA’s San Antonio Spurs and European football giants FC Barcelona and Real Madrid. CEO Alan Waxman highlighted how streaming and digital distribution have broadened the global appeal of live sports, making them an increasingly attractive asset class.

The Giants plan to use the capital for long-term improvements rather than player acquisitions. Planned upgrades at Oracle Park include enhancements to the main entrance, new fan engagement sections, and expanded premium seating. The team will also invest in its training facilities and the Mission Rock development project near the stadium.

“This is about improvements to the ballpark, making big bets on San Francisco and the community around us, and having the firepower to take us into the next generation,” said Giants president and CEO Larry Baer.

As institutional investors continue to target live sports, the Giants’ sale to Sixth Street underscores the increasing role of private equity in professional sports franchises.

Source: The New York Times