Private equity firm Ares Management and billionaire Joe Tsai are in advanced discussions with Miami Dolphins owner Stephen Ross over the acquisition of stakes in the NFL team and related assets in deals that would value the business at $8.1bn, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the potential transaction would see Ares Management acquire a 10% stake in a package that includes the Dolphins, Hard Rock Stadium, and Formula One’s Miami Grand Prix. Tsai, owner of the NBA’s Brooklyn Nets and WNBA’s New York Liberty, plans to purchase an additional 3% stake through his family office, Blue Pool Capital.
If the deal is finalised, it would be the first private equity transaction since the NFL revised its ownership rules in August to permit institutional investors to buy stakes in franchises. The league’s decision to allow private equity firms to own up to 10% of any franchise was aimed at attracting billions in new capital while boosting valuations and providing greater financial flexibility for team owners.
Ross and the Dolphins are being advised by BDT & MSD Partners with a deal expected to be presented for approval at the NFL’s December owners meeting, according to Bloomerg’s sources. Negotiations are ongoing though, and the agreement could still change or fall through.
Ross, who initially purchased 50% of the Dolphins and its associated properties from Wayne Huizenga in 2008 for $550m, was reportedly in discussions earlier this year with Citadel founder and CEO Ken Griffin to buy a stake in the Dolphins and related assets, but those talks ultimately fell through.
Ares Management is one of four private equity groups that have been approved to invest in NFL franchises, alongside Arctos Partners, Sixth Street Partners, and a consortium involving Ludis, Dynasty Equity, Blackstone Inc, Carlyle Group Inc., and CVC Capital Partners Plc. These firms are allowed to buy stakes of up to 10% and must hold their investments for at least six years.
