The Miami Dolphins are in talks to sell a minority stake in the team to Ares Management, billionaire Joe Tsai.
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The Miami Dolphins are in talks to sell a minority stake in the team to private equity firm Ares Management and billionaire Tsai Tsai, CNBC reports, as the team builds its own sports portfolio that includes multiple teams. It highlights the growing trend of owners looking to run their own teams. A stadium that maximizes revenue.
The deal, which also includes Hard Rock Stadium, control of the Miami Grand Prix F1 race and about half of the Miami Open, is valued at $8.1 billion, according to people familiar with the negotiations.
A person close to the negotiations told CNBC that the prevailing valuation for the same assets would be more than $10 billion.
This is the NFL’s first private equity investment since the league approved new financial rules in August.
CNBC valued the Miami Dolphins as the league’s eighth most valuable team at $7.1 billion, not including the stadium.
As part of the negotiations, Ares Management will acquire a 10% stake in the team, and Brooklyn Nets owner Tsai is in talks to acquire an additional 3% stake, according to people familiar with the matter. bloomberg The meeting was reported earlier.
Nothing has been signed and there is no timeline for a potential deal, the person added.
The Miami Dolphins and NFL declined to comment, and Tsai’s BSE Global did not respond to requests for comment.
Businessman Stephen Ross bought the Miami Dolphins in 2009 for $1.1 billion.
A person close to the Miami Dolphins owner said Ross plans to use the proceeds from the sale to expand his South Florida real estate portfolio and make more investments in sports.
Ross, who is also CEO of an affiliated company, is just one of a handful of team owners who own and operate a team’s stadium. This allows them to generate income from events held at the stadium, such as the Miami Grand Prix and the Miami Open Tennis Tournament.
The Dolphins had revenue of $673 million in 2023.
Ross reported earlier this year. Rejected A record $10 billion offer for control of the team, F1 Miami Grand Prix and Hard Rock Stadium. Ross said he wants to keep the team within the family.
In late August, NFL owners voted to allow some private equity firms to invest up to 10% of their teams.
The NFL was the last of the major professional sports to allow PE investments, but the league softened its stance as rising valuations made it increasingly difficult to find buyers.
Ares, which manages $450 billion in assets, is one of four groups approved by the NFL to invest in the team.
Meanwhile, Tsai is building a sports empire. The chairman of Alibaba Group is currently the owner of the Brooklyn Nets and New York Liberty, as well as the operator of Barclays Center. he also san diego shields He is also part owner of the Las Vegas Desert Dogs, both teams in the National Lacrosse League. Los Angeles FC of Major League Soccer.
Correction: The San Diego Seals and Las Vegas Desert Dogs are in the National Lacrosse League. Previous versions incorrectly listed league affiliation.
