San Francisco Giants Sell 10% Ownership Stake to Private Equity Group

The San Francisco Giants have joined the group of MLB teams that are bringing in private equity to be part of their ownership group.

Per a statement released on Tuesday, Giants president Larry Baer announced private equity group Sixth Street has purchased a stake in the organization:

"Sixth Street is both locally and globally recognized as one of the premier investors in sports. 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 organization plays in uplifting San Francisco and the entire Bay Area."

Per a New York Times report, Sixth Street's investment represents around a 10 percent stake in the Giants.

Sixth Street's website describes the company as a "leading global investment firm dedicated to developing themes and offering solutions to companies across all stages of growth" that was formed in 2009.

The New York Times report noted the Giants intend to use Sixth Street's investment to help pay for upgrades to Oracle Park and other facilities, as well as a real estate development adjacent to the stadium.

It also stated that more than half of the 30 MLB teams now have relationships with private equity groups.

Arctos Sports Partners has been one of the biggest private-equity spenders in the sports realm, with ownership stakes for various pro teams in different sports including MLB (Giants, Los Angeles Dodgers, Boston Red Sox, San Diego Padres), NBA (Golden State Warriors, Utah Jazz, Sacramento Kings), NHL (New Jersey Devils, Minnesota Wild, Utah Hockey Club, Tampa Bay Lightning) and soccer (Paris Saint-Germain).

MLB became the first of the major sports leagues in the United States to allow private equity firms to purchase an ownership stake in franchises, approving a rule change in 2019.

Per an August 2024 report from ESPN's Michael Rothstein, private equity groups are limited to a 30-percent ownership stake in MLB clubs.

The addition of private equity ownership in pro sports comes at a time when the value of franchises continues to skyrocket.

Per Forbes' most recent estimates, the Giants are the fifth-most valuable franchise in MLB at $3.8 billion. The only teams ahead of them are the New York Yankees ($7.6 billion), Dodgers ($5.5 billion), Boston Red Sox ($4.5 billion) and Chicago Cubs ($4.2 billion).