According to three sources familiar with the matter, shareholders of Spanish La Liga club Atletico Madrid are in advanced negotiations with Apollo Global Management LLC (APO.US) regarding the sale of a controlling stake. This transaction would represent the latest example of private equity firms venturing into the sports sector, which offers stable and predictable revenue streams.

The negotiations involve the sale of a controlling interest, with the deal valuing Atletico Madrid at approximately 2.5 billion euros (about $2.9 billion). One source indicated that the U.S. company could gain control of the club by acquiring portions of the stakes held by club CEO Miguel Angel Gil Marin and chairman Enrique Cerezo.

A second source noted that Apollo Global Management LLC may also acquire shares from investment fund Ares Management. Another source added that Apollo Global Management LLC might not immediately obtain controlling interest initially, but is expected to secure it in subsequent phases of the transaction. The source also pointed out that existing management is expected to remain in place, while shareholders may only sell partial holdings.

According to Atletico Madrid's official website, the three aforementioned investors collectively hold approximately 70% of shares through Atletico Holco, with the remaining shares held by shipping and energy conglomerate Quantum Pacific.

Atletico Madrid previously stated that the club requires at least 60 million euros in additional capital to invest in the team and develop sports and leisure projects around the Metropolitano Stadium, necessitating new partner investment.

The three sources cautioned that the deal is not yet finalized, and negotiations could still collapse. One source revealed that Apollo has secured exclusive investment rights for a three-month period ending in mid-October.

Apollo Global Management LLC manages assets exceeding $800 billion and is planning to establish a $5 billion sports investment fund. According to PwC projections, the global sports sponsorship market is expected to reach $115 billion in 2025 and surpass $160 billion by 2030 at current growth rates.