Miami Dolphins are in advanced talks to sell minority stake in team to Ares Management, billionaire Joe Tsai
Miami Dolphins in Talks to Sell Minority Stake #
The Miami Dolphins are reportedly in advanced discussions to sell a minority stake in the team. The potential buyers include a private equity firm and a billionaire investor. This deal, if completed, would value the Dolphins at $8.1 billion.
The proposed transaction would encompass not only the team but also Hard Rock Stadium, the operating rights for the Miami Grand Prix Formula 1 race, and approximately half of the Miami Open tennis tournament.
This potential deal aligns with a growing trend in sports ownership, where owners are expanding their portfolios to include multiple teams and operate their own stadiums to maximize revenue streams.
The NFL recently approved new finance rules allowing private equity investment in teams, and this would mark the first such investment since those rules were implemented. The Dolphins are currently ranked as the eighth most valuable team in the league.
Under the proposed deal, the private equity firm would acquire a 10% stake in the team, while the billionaire investor is in talks to purchase a 3% stake. However, it’s important to note that nothing has been signed yet, and there is no set timeline for the potential deal.
The current owner of the Miami Dolphins purchased the team in 2009 for $1.1 billion. As one of the few NFL team owners who also owns and operates the team’s stadium, he has been able to generate additional revenue from events held at the venue.
In 2023, the Dolphins reported revenue of $673 million. Earlier this year, the current owner reportedly declined a record $10 billion offer for control of the team, the Formula One Miami Grand Prix, and Hard Rock Stadium, expressing a desire to keep the team within his family.
The NFL’s recent decision to allow private equity investment in teams comes as rising valuations have made it increasingly challenging to find individual buyers. The league has approved select private equity firms to invest up to a 10% stake in teams.
This potential investment in the Dolphins reflects the ongoing evolution of sports team ownership and financing in professional sports, particularly in the NFL.