DECEMBER 11: The Bills will take advantage of the new NFL rules regarding private equity, as these batch of investments received approval Wednesday morning at the latest owners meetings. Carter, McGrady and Altidore are among the 10 new partners acquiring minority stakes in the AFC East franchise. Bank of America’s Mike Joo and Meritech Capital’s Rob Ward round out the group, which also includes a private investment firm (Arctos).
NOVEMBER 28: Multiple teams around the NFL have either worked out agreements to sell non-controlling shares in their organizations or have at least looked into doing so. The Bills are in position to divest in the near future. 
Deals are in place with a group of new would-be shareholders totaling 10.7% of the Bills, Ben Fisher of the Sports Business Journal reports. That collection of individuals is set to be joined by Arctos Partners, which will take on a 10% stake. The agreements could receive ratification as early as next month’s league meeting.
As Fisher notes, the group which is on track to acquire minority stakes includes Rob Palumbo (5.6% share), Theresia Gouw (2%), Sue McCollum (1.7%), and Tom Burger (1.4%). All have a business background from various sectors, and Burger’s group of investors includes NBA Hall of Famers Vince Carter and Tracy McGrady along with former Toronto FC player Jozy Altidore. Approval from at least 24 of the league’s 32 owners will be required for their respective purchases to go through.
“Earlier this year, the Pegula family retained Allen & Company to explore the potential sale of a non-controlling, minority interest in the Bills,” a team statement reads. “Since then, there has been a significant amount of interest, and our focus has been on finding the right partners for our organization. The process is ongoing, and any potential investor cannot be confirmed or finalized until it is approved by the NFL.”
Per Fisher’s report, financial terms – which will be tied to the Bills’ valuation – are not known. Provided the sales go through in the near future, majority owner Terry Pegula will be left with a stake of roughly 79% of the franchise he purchased in 2014. The 73-year-old will maintain control over the organization moving forward, but he could soon have a number of new partners.
FIRST COMMENT LESSSSSSGOOOOOOOOOOO
Bears blew it! Bye Bye Eflubus!!
How do you not use your last timeout with 32 seconds left??
So eventually there will be NFL teams with more owners than Preakness Stakes winner Seize the Grey (2500+) :)
I don’t really like the idea of a board of investors for a team. The more teams become corporations the more the NFL loses whatever sport it has left. It’s already all about the money right now; having more hands in the pot just further minimizes whatever identity the teams-err, companies-have left.
I actually think its good for having more diversified team ownership. The longtime era of family nepotism needs to finally end. Football teams need to be owned and managed by real football people who care about the fans and product,rather than lining their pockets. With more owners, should come more transparency and accountability, without a high paid commissioner protecting a secretive boys club.
Every year, the NFL makes billions but never truly reveals accounting, while most of the teams put inferior product on the field without blowback. Any other”company” would lose customers and credibility but the NFL has been doing this type of business forever, while operating as if theyre too big to fail. Like other monopolies, the NFL would have to change their tune if fans and consumers boycotted their total product but fans will pay anything to be entertained or uplifted. At least fans are smart enough to refuse to fund the oligarche’s team stadiums once they see the billion dollar valuations of their teams. The owners want stadiums, pay for it out of your own pockets instead of pilfering tax payers and consumers.
I see the logic, I really do, but my problem is that the people getting involved here are not football people. I mean, we don’t know if these owners are better or worse (Tepper or Haslam, for instance, both of whom were Steelers’ minority owners). They’re businesspeople, too. They’re not buying a team to push its culture or team spirit or even necessarily to win; they’re doing to make money. Winning usually helps, but it’s necessarily required. I mean, how many times do we see non-sport companies make “business” decisions aimed at appeasing shareholders or investors? Will they, say, be patient with a good coach during a rebuild or slump? Would they fire a GM who is otherwise capable after a bad year?
I know that regular owners do this, too, but the pressure of appeasing investors seems more likely to increase pressure in negative ways than positive ones to me. Pushing for results is good, but it also requires patience in this business, which I’m not sure the shareholder approach supports….especially if that those “shareholders” are actually entire companies with their own investors. Can you imagine being at a shareholders’ meeting and there are four or five stock company representatives who each own a portion of the team, and they’re demanding that some move be made on the part of their own shareholders? Individual minority owners might not be so bad on a limited basis, but teams becoming corporations that are owned by corporations is a bad trend for me.
Good points and I agree with the logic, which is another reason why the NFL draft needs to be changed or abolished. Too many teams draft at the top but never improve, while the good teams have to prove how good their coaching or talent evaluations are with the talent thinned out. Free agency can help players make more money but the owners still win out with franchise tags and collusion to prevent guaranteed contracts–though the Browns stupidly gave one to Watson–from happening more often. Players, especially QBs, could tie theyre compensation more towards a percentage of team profits but the accounting has to be more transparent even if the owner–or owners– wanting that player, agreed to it.
Why cant a Mahomes, Jackson or Prescott demand equity-ownership into a team?
I don’t know about equity, but I’m definitely for guaranteed contracts, for all players. Amounts would probably be smaller, too. You’d think that the NFL’s tax exempt status would be incompatible with its protected “monopoly that’s not recognized as such”, but they still manage to hide their books.
That’s working out so well in Cleveland.
I mean, that’s fair. But that’s also on them for authorizing that deal for a guy with so many red flags already who hadn’t even played a down for them.
Maybe equity isnt the right word … more like a percentage tied to an increasing salary cap or something like what Mike Florio suggested? Too much turkey meal …
The more corporate-looking teams get, the more focus will go on boosting profits and the less it will be about winning games. These aren’t football people they’re adding…
Agreed.
Seems like a win-win for both Pegula and Investors. Mr. Pegula has put a lot of cash into his Buffalo interests over the years … various health/medical facilities, hotels, harbor front, Sabres, Bills… so why not pull some cash out ?? As for the Investors, they’ll get prestige, benefits, bragging rights, and will make money as well. No need to overthink this.
My push, I agree with AK and second his thoughts. Wolf has some good insight also.
I believe with more ‘corporate investing’ the base NFL team model becomes increasingly about profits (which seems there’s plenty in the existing configuration for owners) and less about the Football product that ‘fans’ enjoy.
Corporations ignore the individual, people and single product, to view profit margin and expansion of unit visibility. This could diminish ability of consumers to afford their end. I have not attended a NFL or NBA sporting event since the cost for 2 exceeded $125 for a few hours of ‘entertainment or frustration’, funds can be used for better offerings.
“funds can be used for better offerings”
I’m going to the nudie bar with Al Bundy this weekend . If you still have $125 you can join us :)
Oh-the guy who scored four touchdowns in one game? That guy? Legend
Decent investment I’d agree but I’m over a hundred of miles from such establishments.
I still go – but the its been ridiculous for a long time.
My wife and I do pretty well, but I wonder how a regular family can afford them.
Im kind of getting grumpy in my old age, and dealing with crowds is increasing unbearable. And I get a better experience on the broadcast.
Of course the atmosphere is unbelievable at a game but Ive got less appetite for travel and people. When you factor in the ridiculous price and now psls, Im with ya.
I keep saying I don’t want to go, but I keep going. But that probably won’t last much longer wuth escalating prices.
If you have never experienced Bills Mafia in Buffalo, it is worth seeing once.
Nobody sits down for a minute.
Even when they were bad, the fans were excellent.