Miami Dolphins Sell Minority Stake in Team to Ares Management and Joe Tsai
In an exciting development for the Miami Dolphins, the team is currently in advanced talks to sell a minority stake to private equity firm Ares Management and billionaire Joe Tsai. This move is just one example of the growing trend of team owners looking to expand their sports portfolios by including multiple teams and operating their own stadiums to maximize revenue.
The deal, which would also include Hard Rock Stadium, the operating rights for the Miami Grand Prix F1 race, and about half of the Miami Open, values the assets at an impressive $8.1 billion. For comparison, a controlling valuation for the same assets would have been upwards of $10 billion, showcasing the significant value of the deal.
This potential investment marks the first private equity involvement in the NFL since the league approved new finance rules in August. The Miami Dolphins are already a valuable asset, with CNBC ranking them as the league’s eighth most valuable team at $7.1 billion, excluding the stadium.
As part of the negotiations, Ares Management is looking to acquire a 10% stake in the team, while Joe Tsai, who already owns the Brooklyn Nets, is in talks to purchase an additional 3% stake. It’s important to note that nothing has been finalized yet, and there is no set timeline for the deal.
Business mogul Stephen Ross, who bought the Miami Dolphins in 2009 for $1.1 billion, is reportedly considering using the proceeds from the sale to further expand his portfolio of South Florida real estate and continue investing in sports. Ross, who is also the CEO of Related Companies, is among the few team owners who own and operate their team’s stadium, allowing him to generate revenue from various events hosted at the venue.
The Dolphins generated $673 million in revenue in 2023, showcasing the financial strength of the team and its associated assets. Earlier this year, Ross turned down a record $10 billion offer for control of the team, Formula One Miami Grand Prix, and Hard Rock Stadium, citing his desire to keep the team within his family.
The potential sale of a minority stake in the Miami Dolphins comes after NFL owners approved select private equity firms to invest up to a 10% stake in teams. Ares Management, with its impressive $450 billion in assets under management, was among the four groups approved by the NFL for such investments.
On the other hand, Joe Tsai has been steadily building a sports empire, owning and operating multiple teams and venues, including the Brooklyn Nets, New York Liberty, Barclays Center, San Diego Seals, Las Vegas Desert Dogs, and co-owning the Los Angeles FC. His involvement in the potential acquisition of a stake in the Miami Dolphins further solidifies his position as a key player in the sports industry.
Stay tuned for more updates on this exciting development as negotiations progress. The Extreme Investor Network is dedicated to bringing you the latest and most exclusive insights into the world of business news, so be sure to follow us for more valuable content.