Bills, Eagles, Dolphins Approve Adding New Minority Owners

IRVING, Texas — NFL owners approved the first two PE deals since the league changed its ownership rules to allow private equity in August at the league’s winter meeting, two league sources confirmed to Front Office Sports. The NFL limits the amount a private equity firm can own to 10% per team. PE firm Arctos Partners purchased 10% of the Bills, while Ares Management purchased 10% of the Dolphins.

The NFL was the final major U.S. pro league to allow PE investment in teams. 

More NFL Investors

Beyond the PE interests approved, other minority sales reached the 75% vote threshold Wednesday, including: 

• Eagles: managing owner Jeffrey Lurie’s 8% sale to two family investment groups based on an $8.3 billion valuation. 
• Dolphins: Beyond the 10% sold to Ares, owner Stephen Ross also sold 3% of the franchise and other sports assets to Brooklyn Nets owner Joe Tsai. The Dolphins were valued at $8.1 billion at the time of the transaction. 
• Bills: Beyond Arctos, managing owner Terry Pegula is also welcoming nine other limited partners, including former NBA players Vince Carter and Tracy McGrady, along with MLS player Jozy Altidore.
• Raiders: Owners voted to approve individual sales (not related to PE) to Silver Lake co-CEO Egon Durban and Discovery Land Company founder and chairman Michael Meldman, who will each get a 7.5% stake in the team. (Tom Brady and his business partner Tom Wagner secured a 10% ownership stake in the team in October.) Mark Davis remains majority owner of the team.

All the managing owners retain control of their respective teams. Per NFL rules, a team can sell stakes to multiple funds for a total of 10% of ownership; however, each stake must be for at least 3%. And a fund can hold stakes in more than one team at the same time—up to six teams.

“This has been an incredible journey to add such an impressive and diverse group of limited partners along with a reputable private equity partner in Arctos that has an extensive track record of success with professional sports franchises,” Pegula said in a statement.