The San Francisco Giants have sold a 10% ownership stake to Sixth Street, a private equity firm based in San Francisco. This marks the first significant investment in the franchise in three decades.
While the financial terms were not disclosed, Forbes valued the Giants at $3.8 billion at the start of the 2024 season. The investment will fund upgrades to Oracle Park, the team's training facilities in Scottsdale, Arizona, and the Mission Rock real estate development adjacent to the ballpark.
Giants president and CEO Larry Baer emphasised that the funds are intended for infrastructure improvements rather than player acquisitions. He stated, "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."
Sixth Street, managing approximately $100 billion in assets, has prior investments in sports franchises, including the NBA's San Antonio Spurs and European soccer clubs Real Madrid and FC Barcelona. The firm also owns a majority stake in National Women's Soccer League team Bay FC. Alan Waxman, co-founder and CEO of Sixth Street, expressed confidence in the partnership, stating, "We believe in Larry and the leadership team's vision for this exciting new chapter."
The Giants' ownership group, led by chairman Greg Johnson, includes 35 investors. The decision to sell a stake to Sixth Street reflects a growing trend of private equity involvement in Major League Baseball (MLB). Currently, more than half of MLB's 30 teams have relationships with private equity groups.
The funds from this transaction will support several key projects:
Oracle Park Enhancements: Plans include a comprehensive makeover of the 26-year-old stadium, focusing on improving the fan experience with modernised facilities and amenities.
Mission Rock Development: The investment will aid the ongoing development of the Mission Rock real estate project, a mixed-use neighbourhood across McCovey Cove from Oracle Park.
Scottsdale Training Facilities: Upgrades to the Giants' training complex in Scottsdale, Arizona, are planned to enhance player development and preparation.
This strategic partnership aims to bolster the Giants' infrastructure and community engagement, ensuring the franchise's competitiveness and relevance in the evolving sports landscape.
The sale has received approval from Major League Baseball and is effective immediately.