Miami Dolphins close to becoming first NFL team to sell stake to private-equity firm

By Steve Gelsi

Ares Management and Alibaba chair Joe Tsai reportedly in talks to buy minority stakes in the team

Private-equity group Ares Management Corp. and billionaire Joe Tsai, the chair of Alibaba Group, are nearing an agreement to buy minority stakes in the Miami Dolphins based on a total valuation of more than $8 billion for the NFL team, according to a Bloomberg report.

Citing unnamed sources familiar with the deal, the report said Ares (ARES) is in advanced talks with team owner Stephen Ross to buy a 10% stake in Miami Dolphins properties, which also include Formula 1's Miami Grand Prix event and the Hard Rock Stadium in Miami Gardens, Fla.

Tsai, who is the co-founder and chair of Alibaba (BABA) (HK:9988) and also owns the NBA's Brooklyn Nets and the WNBA's New York Liberty, would buy a 3% stake through Blue Pool Capital, his family office.

An Ares spokesperson declined to comment to MarketWatch on the report.

The Dolphins, the NFL and spokespersons for Tsai did not comment when Bloomberg reached out to them.

The move comes after the NFL in late August said it would allow a select group of private-equity firms to buy stakes of up to 10% in league teams.

The four entities cleared to seek ownership positions are a consortium made up of Ludis Capital, CVC Capital Partners, Blackstone Inc. (BX), Dynasty Equity and Carlyle Group Inc. (CG), as well as three standalone firms: Ares, Arctos Partners and Sixth Street Specialty Lending Inc. (TSLX).

Bloomberg also reported that Ross had been in talks earlier this year with Ken Griffin, the founder and chief executive of hedge-fund company Citadel, but that deal did not come to fruition.

The $8 billion valuation for the Miami Dolphins is a significant increase over the roughly $1.1 billion value of the team in 2008, when Ross paid billionaire Wayne Huizenga $550 million for a 50% stake.

A lawyer who has worked with professional sports teams told MarketWatch in August that the approval of private-equity ownership in the NFL will likely expand behind the initial 10% level.

Also read: NFL approval of private-equity money is logical first step toward much-needed capital, lawyer says

-Steve Gelsi

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10-03-24 1159ET

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