(Bloomberg) — The NFL entered a new era on Wednesday by allowing the first investments by private equity firms in teams.
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League owners voted to approve the sales of two 10% stakes, the maximum allowed to be acquired by institutional investors under new ownership rules set earlier this year. The Miami Dolphins are selling to Ares Management, while Arctos Partners is acquiring a piece of the Buffalo Bills, according to the teams. Bloomberg previously reported both deals were in the works.
The move has the potential to boost team valuations that had already been surging. Owners have said adding another pool of deep-pocketed investors will help fund big projects like stadium renovations.
The league also approved acquisitions by individual investors. Joe Tsai, the Alibaba co-founder and Brooklyn Nets owner, is buying a 3% stake in the Dolphins. A large group of investors are acquiring roughly 11% in the Bills.
The Philadelphia Eagles are selling 8% to two investor groups: Susan Kim, Amkor Technology’s executive vice chairman, and Zac Peskowitz and Olivia Peskowitz Suter, children of Ed Peskowitz, founder of United Communications Group, according to sources familiar with the deal. The transaction values the team at $8.3 billion.
(Updates throughout starting in first paragraph.)
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