The Buffalo Bills and Miami Dolphins made history in the National Football League on Wednesday as they became the league’s first club. Sell a stake in your team to private equity firms,
The minority, non-controlling interest, meaning the firms have no voting or actual decision-making power with teams, was approved at NFL league meetings in Dallas, Texas on Wednesday.
Buffalo, which has a commanding four-game lead over Miami in the AFC East division with four weeks remaining in the regular season, sold a stake to Arctos Partners, while Ares Management is acquiring a share of the Dolphins.
In August, NFL owners voted to allow 32 of their teams to pursue private equity funding, albeit only with pre-approved firms and only up to 10% of franchises.
The Bills added 10 limited partners to their ownership group, including private investment firm Arctos Partners, marking the first time in franchise history that minority owners have been added.
The group added to the Bills’ ownership also includes Basketball Hall of Famers Vince Carter and Tracy McGrady and former U.S. national team soccer player Jozy Altidore.
Bills owner Terry Pegula said, “It has been an incredible journey combining such an impressive and diverse group of limited partners with an established private equity partner in Arctos, who has an extensive track record of success with professional sports franchises. ” Along with Kim, he bought the team in 2014 for $1.4 billion.
Dolphin, which owner Stephen M. Ross bought for $1 billion in 2009, said the investment firm would acquire a 10% stake in Ares Management Team.
Additionally, Dolphin told individual investors Joe Tsai and Oliver Weisberg, owners of the NBA’s Brooklyn NetsWill keep 3% interest together.
Ross, who will remain the controlling owner of the Dolphins, said in a news release that the resources received from this transaction will allow the team to prioritize investments in the Dolphins, additional sports properties and South Florida real estate.
