Dolphins owner Stephen Ross is nearing a deal to sell a minority stake in his franchise, which includes a 10% share of the Dolphins, Hard Rock Stadium, and the Miami Grand Prix, to private equity firm Ares Management. Additionally, Ross plans to sell another 3% to Joe Tsai, owner of the NBA’s Brooklyn Nets and WNBA’s New York Liberty, according to a report by Randall Williams from Bloomberg.com.
This potential sale would be significant, as it marks one of the first instances of a private equity firm acquiring a stake in an NFL team. In August, the league modified its ownership regulations to allow approved private equity firms to purchase up to 10% of teams, recognizing the rising valuations of NFL franchises. Ares is among the firms on the approved list.
Previously, Ross had discussions with hedge fund billionaire Ken Griffin, but those talks did not result in a deal. He also reportedly turned down a $10 billion offer for control of the Dolphins, Hard Rock Stadium, and the Miami Grand Prix from an unnamed party.
If the sale proceeds, Ross hopes to finalize and gain approval for the deal at the NFL’s December 2024 meetings. The sale, based on an $8.1 billion valuation, illustrates the surge in NFL team values. Ross, who acquired the Dolphins for $1.1 billion in 2009, stands to recoup nearly the entire investment by selling just a 13% stake.
Ross, 84, has faced several high-profile ownership controversies in recent years, including a 2022 suspension and the loss of first- and third-round draft picks for tampering with Tom Brady and Sean Payton. The firing of head coach Brian Flores in 2022 led to a discrimination lawsuit and allegations that Ross offered incentives for losing games in 2019, although the NFL did not impose punishment for tanking.
Andrew Ross Sorkin of the New York Times was among the first to report Ross’s intention to sell a minority share. The initial valuation considered for the sale was over $7 billion, with Arctos Partners also involved in early discussions.
Leave a Reply