The Miami Dolphins are in advanced talks to sell a minority stake in the team to billionaire Joe Tsai of Ares Management
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The Miami Dolphins are in advanced talks to sell a minority stake in the team to private equity firm Ares Management and billionaire Joe Tsai, CNBC has learned, underscoring the owners’ desire to build their own sports portfolio to include and operate multiple teams. There is a growing trend for stadiums to own sports portfolios to maximize revenue.
The deal, which also includes operating rights to Hard Rock Stadium, the Miami Grand Prix F1 race and about half of the Miami Open, values assets at $8.1 billion, according to a person familiar with the matter.
It would mark the NFL’s first private equity investment since the NFL approved new financial rules in August.
CNBC values the Miami Dolphins as the eighth most valuable team in the league, worth $7.1 billion, not including the stadium.
As part of the negotiations, Ares Management will buy 10% of the team, and Brooklyn Nets owner Tsai is in talks to buy another 3%, the person said. Bloomberg The talks were reported earlier.
No agreement has been signed and there is no timetable for a potential deal, the person added.
The Miami Dolphins and the NFL declined to comment, and Tsai’s BSE Global did not immediately respond to a request for comment.
In 2009, businessman Stephen Ross purchased the Miami Dolphins for $1.1 billion.
Ross, who is also CEO of Related Companies, is just one of a handful of team owners who own and operate a team’s stadium. This allows him to generate income from events held at the stadium such as the Miami Grand Prix and the Miami Open.
The Dolphins’ 2023 revenue is $673 million.
Earlier this year, Ross was reportedly rejected A record $10 billion bid for control of the team, the Formula 1 Miami Grand Prix and Hard Rock Stadium. Rose said he wanted to keep the team in his family.
In late August, NFL owners voted to allow certain private equity firms to invest up to 10% of a team.
The NFL was the last major professional sport to allow PE investments, but has softened its stance as rising valuations make it increasingly difficult to find a buyer.
Ares manages $450 billion in assets and is one of four groups approved by the NFL to invest in its teams.
Meanwhile, Tsai Ing-wen has been building a sports empire. The chairman of Alibaba Group currently owns the Brooklyn Nets, New York Liberty and operates Barclays Center. he also has san diego seals He is a co-owner of the Las Vegas Desert Dogs, both top lacrosse teams, as well as Los Angeles Football Club Member of Major League Soccer.
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