The Miami Dolphins are in advanced talks to sell a minority stake in the team to Ares Management, 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 a growing trend of owners looking to build their sports portfolios to include multiple teams and operate their own teams. Stadiums to maximize revenue.
The deal, which will also include Hard Rock Stadium, operating rights to the Miami Grand Prix F1 race and about half of the Miami Open, values the assets at $8.1 billion, according to a person familiar with the negotiations.
A controlling valuation for the same assets could have exceeded $10 billion, a source close to the negotiations told CNBC.
This will be the NFL's first private equity investment since the league approved new financing rules in August.
CNBC valued the Miami Dolphins as the eighth most valuable team in the league at $7.1 billion, and that doesn't include the stadium.
As part of the negotiations, Ares Management will buy 10% of the team, and Tsai, owner of the Brooklyn Nets, is in talks to buy another 3% stake, the source said. Bloomberg previously reported the talks.
He added that nothing has been signed and there is no timetable for a potential deal.
The Miami Dolphins and NFL teams 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 portfolio of properties in South Florida and increase his investments in sports.
Ross, who is also CEO of Related Companies, is just one of a few team owners who also own and operate the team's stadium. This allows him to generate revenue from events held at the stadium such as the Miami Grand Prix and the Miami Open.
The Dolphins generated $673 million in revenue in 2023.
Earlier this year, Ross reportedly rejected a record $10 billion offer to take control of the team, the Formula 1 Miami Grand Prix and Hard Rock Stadium. Ross said he wants to keep the team in his family.
In late August, NFL owners voted to allow select private equity firms to invest up to 10% of teams' equity.
The NFL is the last of the major professional sports to allow private equity investment, but the league has softened its stance as rising valuations have made it more difficult to find buyers.
Ares, which manages $450 billion in assets, was one of four groups the NFL agreed to invest in its teams.
Meanwhile, Tsai was building a sports empire. The Alibaba Group chairman currently owns the Brooklyn Nets, New York Liberty and manages Barclays Center. He also owns the San Diego Seals and is a co-owner of the Las Vegas Desert Dogs, both Premier Lacrosse teams, as well as Major League Soccer's Los Angeles FC.
