The Buffalo Bills and Miami Dolphins made National Football League history Wednesday by becoming the league's first clubs to sell their stakes to a private equity firm.
The minority non-controlling interest, which means the company has no voting or actual decision-making power over the team, was approved at the NFL League Conference in Dallas, Texas, earlier Wednesday.
With four weeks left in the regular season, Buffalo has a commanding four-game lead over Miami in the AFC East, selling its stock to Arctos Partners while Ares Management acquires a portion of the Dolphins. .
In August, NFL owners voted to allow 32 teams to receive pre-approved corporate funding and private equity financing up to 10% of the franchise.
Bills has added 10 limited partners to its ownership group, including private investment firm Arktos Partners, marking the first time a minority shareholder has been added in the franchise's history.
Also included in the group added to the Bills' ownership are Basketball Hall of Famers Vince Carter and Tracy McGrady, as well as former U.S. national team soccer player Jozy Altidore.
“It has been an incredible journey to add such an impressive and diverse group of limited partners and a reputable private equity partner in Arctos with an extensive track record of success with professional sports franchises.” said Bills owner Terry Pegula. He and Kim purchased the team in 2014 for $1.4 billion.
The Dolphins, which owner Stephen M. Ross bought for $1 billion in 2009, announced that investment firm Ares Management will acquire a 10% stake in the team.
Additionally, the Dolphins announced that private investors Joe Tsai and Oliver Weisberg, owners of the NBA's Brooklyn Nets, will jointly hold a 3% interest in the team.
Ross, who remains the Dolphins' controlling owner, said in a news release that the resources from the deal will allow the team to prioritize investments in the Dolphins, additional sports assets and real estate in South Florida.
