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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 seeking to expand their sports portfolio to include multiple teams and manage their own stadiums to maximize revenue.
The deal, which would also include Hard Rock Stadium, operating rights to the Miami F1 Grand Prix and about half of the Miami Open, values the assets at $8.1 billion, according to a person familiar with it. negotiations.
It would be the first private equity investment for the NFL since the league approved new financial rules in August.
CNBC valued the Miami Dolphins as the eighth most valuable team in the league, at $7.1 billion, not including 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%, the source said. Bloomberg had earlier reported on the talks.
Nothing has been signed and there is no timetable 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 purchased the Miami Dolphins in 2009 for $1.1 billion.
Ross, also CEO of related companies, is just one of a handful of team owners who also own and operate the team’s stadium. This allows it to generate revenue from events held at the stadium such as the Miami Grand Prix and the Miami Open tennis tournament.
The Dolphins made $673 million in revenue in 2023.
Earlier this year, Ross reportedly denied 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 certain private equity firms to invest up to 10% of equity in teams.
The NFL is the last of the major professional sports to allow private equity investments, but the league has softened its stance as rising valuations make it increasingly difficult to find buyers.
Ares, which manages $450 billion in assets, was one of four groups the NFL approved to invest in its teams.
Meanwhile, Tsai is building a sports empire. The chairman of Alibaba Group currently owns the Brooklyn Nets, the New York Liberty and operates the Barclays Center. He also has the San Diego Seals and is co-owner of the Las Vegas Desert Dogs, two Premier Lacrosse teams, in addition to Los Angeles FC of Major League Soccer.