Miami Dolphins Owner Nears Selling Stakes to Ares, Joe Tsai

Miami Dolphins owner Stephen Ross is in advanced talks with private equity firm Ares Management and billionaire Joe Tsai to sell stakes in the NFL team and other assets at a valuation of $8.1 billion, according to people familiar with the transaction.
As part of the agreement, Ares will purchase a 10% stake in the properties, which also include Hard Rock Stadium and F1’s Miami Grand Prix, said the people who asked not to be named because the talks are private. Tsai, the owner of the NBA’s Brooklyn Nets and WNBA’s New York Liberty, will buy 3% through his family office, Blue Pool Capital.
The Dolphins, NFL and Ares declined to comment. Representatives for Tsai didn’t immediately respond to a request for comment. 
The potential deal could become the NFL’s first private equity transaction after the league changed its ownership rules earlier this year to allow institutional investors. However, the agreement is still being negotiated and may change or fall apart. 
Ross, also a billionaire, is targeting the league’s December owners meeting for approval, according to people familiar. Ross and the Dolphins are being advised by BDT & MSD Partners.
In 2008, Ross purchased 50% of the Dolphins, the stadium and its surrounding land from Wayne Huizenga for $550 million. The following year, he acquired control of the assets.
Griffin Talks
Ross had been in talks with the Citadel founder and Chief Executive Officer Ken Griffin to buy a stake in these assets earlier this year, but talks fell apart, according to a person familiar with the negotiations.
Ross is committed to keeping the team within his family, according to a person familiar. The real estate developer has made big investments in Florida’s West Palm Beach and is focused on expanding his sports holdings. That includes Relevant Sports Group, an organization leading the efforts to grow soccer in the US.
Multiple league sources have said the NFL has been encouraging teams to get deals done for several reasons, including boosting valuations and funding stadium deals. The Buffalo Bills and Philadelphia Eagles have been in talks with PE buyers, Bloomberg reported in September.
Under the league’s rules, Ares would be permitted to buy into five more NFL clubs.
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