Miami Dolphins owner, Stephen Ross, is set to potentially capitalize on the new private equity rules in the world of American football. According to the New York Times, Ross is currently engaged in discussions with various private equity firms and individuals to potentially offload up to 15 percent of the franchise, with a staggering valuation that could exceed $7 billion.
If we do the math (which can be a challenge for some), 15 percent of the Dolphins would come with a price tag of $1.05 billion. It’s worth noting that back in 2009, Ross acquired the entire team and its stadium for a cool $1 billion.
Previously, Ross had explored the possibility of selling a minority stake in the team to Ken Griffin. Rumor has it that Ross once turned down an offer of over $10 billion for not just the team and its stadium, but also the Miami F1 race.
The new report indicates that the minority ownership stake would include equity in the iconic Hard Rock Stadium and the annual F1 race in Miami. Despite reportedly aiming to sell up to 15 percent of the team, the new rules state that private equity investment can only go up to 10 percent.
Nevertheless, the issue with minority interests lies in the lack of control they afford. It’s essentially a passive investment, where the owner has little say in the team’s operations. However, with the steady increase in the value of NFL franchises, it remains an attractive option for investors looking for a potentially lucrative play in the sports realm.
In the intriguing world of American football ownership, Stephen Ross appears to be navigating the landscape with a strategic eye towards leveraging the new private equity rules for his own financial gain. With talks ongoing and valuation numbers soaring, the Miami Dolphins franchise could soon see a significant shift in ownership structure. Stay tuned as this tale of sports business unfolds in the coming days.
