The Miami Dolphins are contemplating promoting their shares to Ares Administration, Joe Tsai
The Miami Dolphins are in advanced talks to sell a minority stake in the team to billionaire Joe Tsai's Ares Management
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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 Stadiums to maximize revenue, CNBC has learned.
The deal, which would also include Hard Rock Stadium, operating rights to the Miami Grand Prix F1 race and about half of the Miami Open, is worth $8.1 billion, according to a person familiar with the negotiations .
A relevant valuation for the same assets would have been over $10 billion, a source involved in the negotiations told CNBC.
This would be the first private equity investment for the NFL since the league approved new financial rules in August.
CNBC valued the Miami Dolphins as the eighth most valuable team in the league at $7.1 billion, not including the stadium.
As part of the negotiations, Ares Management would buy 10% of the team and Tsai, owner of the Brooklyn Nets, was in talks to buy an additional 3% stake, the person said. Bloomberg had previously reported on the talks.
Nothing has been signed yet and there is no timeline for a possible deal, the person added.
The Miami Dolphins and the NFL 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 expand his real estate portfolio in South Florida and advance his investments in sports.
Ross, also CEO of Related Companies, is just one of a few team owners who also own and operate the team's stadium. This allows it to generate revenue from events at the stadium such as the Miami Grand Prix and the Miami Open tennis tournament.
The Dolphins generated $673 million in revenue in 2023.
Earlier this year, Ross reportedly rejected a record $10 billion offer for control of the team, the Formula 1 Miami Grand Prix and the 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% ownership in teams.
The NFL is the last major professional sport to allow PE investment, but the league softened its stance as rising valuations made it increasingly difficult to find buyers.
Ares, which manages $450 billion in assets, was one of four groups the NFL approved to invest in its teams.
Tsai has now built a sports empire. The Alibaba Group chairman currently owns the Brooklyn Nets and New York Liberty and operates the Barclays Center. He is also the owner of the San Diego Seals and co-owner of the Las Vegas Desert Dogs, both teams in the National Lacrosse League, and Los Angeles FC of Major League Soccer.
Correction: The San Diego Seals and Las Vegas Desert Dogs play in the National Lacrosse League. A previous version incorrectly stated the league they play in.
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