The New York Yankees are reportedly on the verge of bringing private equity powerhouse Apollo Global Management into the franchise, in a deal that would eventually give the firm a 16% economic stake while leaving the Steinbrenner family firmly in control.

According to the New York Post, the agreement has been reached in principle and could be finalized as soon as this week, although the complicated ownership structure could push the closing date back.

Apollo is committing approximately $2.6 billion through a combination of cash, equity and debt financing, putting the Yankees’ implied valuation at more than $12 billion. The Steinbrenner family is expected to retain more than 60% ownership and would sell no more than 3% of its controlling interest.

Under the proposed arrangement, Apollo would initially acquire an 8% stake with cash, while receiving preferred shares representing another 8%. Those preferred shares could be converted into regular equity after four years. Part of Apollo’s cash investment would also be used to refinance debt held by the Yankees’ ownership group at a lower cost.

The transaction could push the Yankees past the Los Angeles Dodgers as Major League Baseball’s most valuable franchise, based on projections cited by people familiar with the investment. Apollo would become the team’s largest equity holder outside the Steinbrenner family.

Al Tylis, who leads Apollo’s sports investment operation, is also expected to join the 13-member board of Yankee Global Enterprises.

The additional capital could provide the Yankees with greater financial flexibility for roster spending, debt reduction and maintaining reserves in the event of a future MLB work stoppage.

Apollo’s investment will be made through Yankees Global Management, the holding company overseeing not only the Yankees but also the YES Network, Legends Hospitality and Italian soccer club AC Milan.

The transaction reportedly developed from two separate interests: Yankees limited partners looking to liquidate portions of their holdings for estate-planning purposes, and Apollo seeking a major anchor investment for its growing sports-focused fund. Apollo, led by Marc Rowan, has invested billions across its broader sports investment platform.

The deal would also require an exception to MLB’s current rules, which generally limit private equity firms to a maximum 15% stake in a team. According to the report, the league is expected to approve a waiver.

For Apollo, the Yankees investment would represent its largest sports transaction to date, adding to its holdings that include Spanish soccer club Atlético Madrid and professional pickleball.