The Miami Dolphins are in advanced negotiations to sell a minority stake in the team to Ares Management and billionaire Joe Tsai.
The Miami Dolphins are in advanced discussions to sell a minority stake in the team to private equity firm Ares Management and billionaire Joe Tsai, CNBC has learned. This move reflects the increasing trend of sports owners expanding their portfolios to include multiple teams and managing their own stadiums to enhance revenue. The deal, which also covers Hard Rock Stadium, operating rights for the Miami Grand Prix F1 race, and around half of the Miami Open, values the assets at $8.1 billion, according to a source familiar with the negotiations.
A source close to the negotiations told CNBC that a controlling valuation of the same assets would have exceeded $10 billion. This deal would represent the first private equity investment in the NFL since the league revised its finance rules in August.
CNBC valued the Miami Dolphins as the NFL’s eighth most valuable team at $7.1 billion, excluding the stadium. As part of the deal, Ares Management is set to purchase a 10% stake in the team, while Joe Tsai, owner of the Brooklyn Nets, is negotiating to acquire an additional 3%, according to the source. Bloomberg first reported on the talks.
No agreements have been signed, and there is no set timeline for the potential deal, the source added. Both the Miami Dolphins and the NFL declined to comment, and Tsai’s BSE Global has not yet responded to a request for comment.
Businessman Stephen Ross bought the Dolphins in 2009 for $1.1 billion. A source familiar with Ross’s plans said he intends to use the proceeds from the sale to expand his South Florida real estate portfolio and increase his sports investments.
As CEO of Related Companies, Ross is among a select group of team owners who also own and operate their stadiums, allowing him to generate additional revenue from events like the Miami Grand Prix and the Miami Open tennis tournament. In 2023, the Dolphins earned $673 million in revenue.
Earlier this year, Ross reportedly rejected a record $10 billion offer for control of the team, Formula One Miami Grand Prix, and Hard Rock Stadium, stating his desire to keep the team within his family.
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