The Miami Dolphins consider selling their stake to Ares Management and Joe Tsai
The Miami Dolphins are in advanced talks to sell a minority stake in the team to Ares Management and billionaire Joe Tsai.
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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, highlighting the growing trend of owners looking to build their sports portfolios to include multiple teams. and operate your own. stadiums to maximize revenue.
The deal, which would also include Hard Rock Stadium, operating rights to the Miami Formula 1 Grand Prix race and about half of the Miami Open, values the assets at $8.1 billion, according to a person familiar with the negotiations. .
A control valuation for the same assets would have been more than $10 billion, a source close to the negotiations told CNBC.
This would be the first private equity investment for the NFL since the league approved new financial rules in August.
CNBC has valued the Miami Dolphins as the eighth most valuable team in the league at $7.1 billion, which does not include the stadium.
As part of the negotiations, Ares Management would buy 10% of the team and Tsai, owner of the Brooklyn Nets, is in talks to buy another 3% stake, the person said. Bloomberg previously reported on the talks.
Nothing has been signed and there is no timeline for a possible 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.
Businessman Stephen Ross bought the Miami Dolphins in 2009 for $1.1 billion.
A source close to the Miami Dolphins owner said Ross plans to use the money from the sale to increase his real estate portfolio in South Florida and promote his investment in sports.
Ross, also CEO of related companies, is just one of a few team owners who also own and operate the team’s stadium. This allows it to earn income from events held at the stadium, such as the Miami Grand Prix and the Miami Open tennis tournament.
The Dolphins earned $673 million in revenue in 2023.
Earlier this year, Ross reportedly rejected a record $10 billion bid for control of the team, the Miami Formula One Grand Prix and Hard Rock Stadium. Ross said he wanted to keep the team within his family.
In late August, NFL owners voted to allow select private equity firms to invest up to a 10% stake in teams.
The NFL is the last of the major professional sports to allow PE investing, but the league softened its stance as rising valuations have made finding buyers increasingly difficult.
Ares, which manages $450 billion in assets, was one of four groups the NFL approved to invest in its teams.
Meanwhile, Tsai has been building a sports empire. The president of the Alibaba Group currently owns the Brooklyn Nets, the New York Liberty and operates the Barclays Center. He also owns the San Diego Seals and is co-owner of the Las Vegas Desert Dogs, both Premier Lacrosse teams, as well as Los Angeles FC of Major League Soccer.