Dolphins owner Stephen Ross has been attempting to sell a minority stake in his franchise, and it appears he could be getting close. Per Randall Williams of Bloomberg.com, Ross is nearing a deal to sell a 10% total stake in the Dolphins, Hard Rock Stadium, and the Miami Grand Prix to private equity firm Ares Management. Ross would sell another three percent of those assets to Joe Tsai, who owns the NBA’s Brooklyn Nets and WNBA’s New York Liberty.
This transaction would be notable in and of itself, but as Mike Florio of Pro Football Talk observes, it would represent perhaps the first sale to a private equity fund. With the prices for NFL franchises continuing to soar, it was only a matter of time before the league relaxed its ownership rules and permitted private equity firms to acquire an interest in NFL clubs, and in August, the league adopted a regulation allowing certain PE firms to buy up to 10% of teams. Ares is one of a handful of firms that are currently on the “approved” list.
Ross was recently engaged in sales discussions with hedge fund billionaire Ken Griffin, though those talks did not produce an agreement. Ross also reportedly rejected a $10 billion offer – made by someone other than Griffin – for control of the Dolphins, Hard Rock Stadium, and the Miami Grand Prix.
Indeed, Adam H. Beasley of Pro Football Network hears that if and when the deal is completed – Ross hopes the sale will be finalized and approved at the league’s December 2024 meetings – there will be no change in the Dolphins’ operation. Ross, 84, wants the club to eventually pass to his daughters, Jennifer and Kimberly.
The prospective sale to Ares and Tsai is based on a valuation of $8.1 billion, which further demonstrates the rise in the values of NFL teams. Ross, who purchased the Dolphins for $1.1 billion in 2009, is on the verge of recovering almost the entirety of that investment by selling just 13% of the club and other assets.
Ross has been in the public eye for his ownership actions at multiple points in recent years. This includes his 2022 suspension and the Dolphins losing first- and third-round picks for tampering with Tom Brady and Sean Payton. Ross firing Brian Flores in 2022 brought on a discrimination lawsuit that includes other teams — the class-action suit is ongoing — and an allegation from Flores that Ross offered money for losses during the 2019 season. The NFL did not punish Ross for tanking.
Andrew Ross Sorkin of the New York Times was among the first to report that Ross was attempting to sell a minority share in the Dolphins, Hard Rock Stadium, and the Miami Grand Prix to a private equity firm. Sorkin’s initial report indicated the valuation used for such a sale would be in excess of $7 billion, and that Arctos Partners was one of the PE firms involved.