Historic First: NFL Welcomes Private Equity into Team Ownership

The Buffalo Bills and Miami Dolphins made NFL history as the first teams to sell stakes to private equity firms. This move, approved in a Dallas meeting, allows non-controlling interest in the franchises by firms Arctos Partners and Ares Management. The transaction aims to facilitate future investments.

In a historic move, the Buffalo Bills and Miami Dolphins have broken new ground as the first teams in the National Football League to sell minority stakes to private equity firms. This groundbreaking decision was sanctioned at the NFL's assembly in Dallas earlier this week, paving the way for similar future endeavors.

The Buffalo Bills, who currently lead the AFC East division, sold a share of their team to Arctos Partners. Meanwhile, Ares Management has acquired a piece of the Miami Dolphins. The NFL had agreed just months ago to permit its teams to seek private equity support, with stringent restrictions ensuring only vetted firms partake and limiting ownership to a maximum of 10% per franchise.

These developments showcase the rapidly evolving landscape of sports franchise ownership, with the inclusion of individuals such as Basketball Hall of Famers Vince Carter and Tracy McGrady in the Bills' ownership group, and Brooklyn Nets owners Joe Tsai and Oliver Weisberg as investors in the Dolphins. Such partnerships are expected to bolster team investments and regional development in South Florida.

(With inputs from agencies.)