Private equity firms have entered the National Football League (NFL) ownership arena for the first time, with Ares Management acquiring a 10% stake in the Miami Dolphins and an Arctos Sports Partners-led investor group acquiring a minority stake in the Buffalo Bills, according to a report by the Financial Times.
Both deals were approved during the NFL owners’ meeting in Dallas, following an August rule change that allowed private equity firms to invest directly in NFL teams.
Ares, which manages nearly $500bn in assets, secured its stake in the Dolphins at a valuation of $8.1bn, with the purchase including stakes in the team’s Hard Rock Stadium and the Formula One Miami Grand Prix. The seller, Dolphins owner Stephen Ross, is a billionaire real estate mogul.
Arctos, meanwhile, added to its growing portfolio of global spots investments by partnering with other investors to acquire a stake in upstate New York-based Buffalo Bills, owned by oil billionaire Terry Pegula.
The NFL is widely regarded as the world’s most profitable sports league with teams typically valued at nine to 12 times their annual revenues, depending on stadium ownership and other factors.
Average team valuations rose to $5.9bn in 2024 — up 15% from the previous year – bolstered by the league’s $110bn domestic media rights deal through 2033.
Dallas-based Arctos already holds minority stakes in Major League Baseball teams, including the Los Angeles Dodgers and San Francisco Giants, as well as NBA franchises, including the Utah Jazz. Globally, it has invested in French football team Paris Saint-Germain and Aston Martin F1. Arctos plans to focus its future investments in North America after raising a $4.1bn fund in April.
Known for its credit expertise, Ares has previously invested in Chelsea FC, Olympique Lyonnais, and Inter Miami. The firm raised $3.7bn in 2022 for a sports and media fund, and has also backed McLaren Racing in Formula One.
The NFL has limited private equity participation to a maximum of 10% ownership in any team. Firms are also barred from pursuing preferred equity deals that grant shareholders superior rights, ensuring a level playing field among team stakeholders.
Other private equity firms that have been pre-approved by the NFL to acquire stakes in teams include Sixth Street and a consortium featuring Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis.
