The private equity firm Ares Capital Management and tech mogul Joe Tsai have been reported as the pair closing in on the purchase of a minority stake in the Miami Dolphins franchise of American football’s National Football League (NFL).
Stephen Ross, the owner of the Dolphins, is selling a 13% stake in both the team and his holdings in the team’s Hard Rock Stadium, motor racing’s Formula 1 Miami Grand Prix, and tennis’ Miami Open (those latter events both take place at the venue).
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It was reported in September that Ross was in talks with one of the few private equity firms able to purchase equity in NFL franchises, with the Dolphins owners having reportedly been looking to sell a stake in the team and his other Miami sporting assets since at least November 2023.
A sale could be ratified as soon as the December NFL owners meeting.
In 2022, Ares raised $3.7 billion in funding earmarked specifically for its sports investments.
As such, Ares already holds stakes in a host of sports teams, primarily in the world of soccer where it previously invested $500 million in English top-tier side Chelsea.
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By GlobalDataThe fund also owns a stake in Major League Soccer franchise Inter Miami, alongside its stake in the Eagle Football Holdings multi-club group that owns France’s Olympique Lyonnais, Brazil’s Botafogo, and Belgium’s RWD Molenbeek.
Alongside Ares, only a other few firms were selected and approved for NFL equity investment: Arctos Partners, Sixth Street, and a consortium of five funds — Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis.
Although the equity funds themselves are limited to a maximum of 10% investment in any franchise, Ross is seemingly aiming to circumvent this through the addition of individual partner investors to purchase the other 3%, in this case, Joe Tsai.
Much like Ares, Tsai is no stranger to sports investments, meanwhile, most prominently through his role as owner of the National Basketball Association’s Brooklyn Nets franchise and its Barclays Center home.
Tsai, the co-founder and chair of Chinese multinational tech and e-commerce giant Alibaba, also owns the WNBA’s New York Liberty, and two sides in the National Lacrosse League, the San Diego Seals and the Las Vegas Desert Dogs.
Ross first entered the Dolphin's ownership in February 2008, purchasing 50% of the team and its stadium, before upgrading his ownership stake to 95% in early 2009, with a total value on his purchase of $1.1 billion.
Through the stake in the stadium, the tennis championship, and the F1 race, the total value of Ross’s Miami assets is reportedly internally valued at $8.1 billion, meaning Ross could demand close to $1 billion for the sale of the 15% stake.
