Investment firm Sixth Street has added to its sports portfolio by acquiring a stake in the San Francisco Giants, with the MLB team set to use the proceeds to help fund upgrades to Oracle Park.
Sixth Street was founded in San Francisco and the two parties said the deal, reported to be for a 10% stake, is intended to help “elevate and expand” the Giants’ commitment to delivering a “best-in-class experience in and around Oracle Park”. They added the investment also provides the opportunity to continue to create and deliver “memorable moments for fans through baseball and other entertainment events and experiences”.
After playing a total of 42 years in Seals Stadium and Candlestick Park, the team moved to the privately constructed, downtown Oracle Park in 2000. The New York Times, which first reported the deal, said that over the next three years, the Giants plan to enhance the stadium’s main entrance facing Willie Mays Plaza, add designated sections for fan clubs and upgrade and expand premium sections that include all-inclusive food and drink service.
The team is also said to be planning to invest more in its training facilities, and the Mission Rock neighbourhood being developed south of the stadium.
The Giants are currently owned by a syndicate of 35 owners, led by Greg Johnson. Arctos Partners, another private equity firm, holds a stake of around 2% in the Giants, with MLB rules dictating that a fund can own up to 15% of a franchise, with no single club being permitted to sell more than 30% to institutional investors.
Larry Baer, Giants president and CEO, said: “This new partnership allows us to further strengthen our franchise on the field and in the community.
“This is our first significant investment in three decades and Greg Johnson and our ownership group are thrilled that Sixth Street believes, just as we do, in our strategic vision for our future as one of the world’s leading sports and entertainment franchises, as well as the important role our organisation plays in uplifting San Francisco and the entire Bay Area.”
Sixth Street is the founding lead investor in Bay FC of the National Women’s Soccer League (NWSL) and is a strategic investment partner to the NBA’s San Antonio Spurs, and Spanish LaLiga football clubs Real Madrid and FC Barcelona.
Alan Waxman, Sixth Street co-founder and CEO, said: “We believe in the future of San Francisco, and our sports franchises, like the Giants, are critical ambassadors for our city of innovation, showcasing to the world what’s only made possible here.
“We believe in Larry and the leadership team’s vision for this exciting new era, and we’re proud to be partnering with them as they execute the next chapter of San Francisco Giants success.”
