Miami dolphins are in advanced talks to sell minority stake in team to ares management, billionaire joe tsai

Miami dolphins are in advanced talks to sell minority stake in team to ares management, billionaire joe tsai

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Miami Dolphins are in advanced talks to sell minority stake in team to Ares Management, billionaire Joe Tsai Getty Images The Miami Dolphins are in advanced talks to sell a minority stake in


the team to private equity firm Ares Management and billionaire Joe Tsai, CNBC has learned, highlighting the growing trend of owners looking to build their sports portfolios to include


multiple teams and operate their own stadiums to maximize revenue. The deal, which would also include Hard Rock Stadium, the operating rights for the Miami Grand Prix F1 race and about half


of the Miami Open, values the assets at $8.1 billion, according to a person familiar with the negotiations. A controlling valuation for the same assets would have been north of $10 billion,


a source close to the negotiations told CNBC. This would mark the first private equity investment for the NFL since the league approved the new finance rules in August. CNBC has valued the


Miami Dolphins as the league's eighth most valuable team at $7.1 billion, which does not include the stadium. As part of the negotiations, Ares Management would buy 10% of the team and


Tsai, owner of the Brooklyn Nets, is in talks to buy another 3% stake, the person said. Bloomberg earlier reported the talks. Nothing has been signed and there is no timeline for a potential


deal, the person added. The Miami Dolphins and the NFL declined to comment, and Tsai's BSE Global did not immediately respond to a request for comment. Businessman Stephen Ross


purchased the Miami Dolphins in 2009 for $1.1 billion. A source close to the Miami Dolphins owner said Ross plans to use the money from the sale to increase his portfolio of South Florida


real estate and further his investment in sports. Ross, also the CEO of Related Companies, is just one of a handful of team owners that also owns and operates the team's stadium. This


allows him to bring in revenue from events held at the stadium such as the Miami Grand Prix and Miami Open tennis tournament. The Dolphins made $673 million in revenue in 2023. Earlier this


year, Ross reportedly turned down a record $10 billion offer for control of the team, Formula One Miami Grand Prix and Hard Rock Stadium. Ross said he wanted to keep the team within his


family. In late August, NFL owners voted in favor of allowing select private equity firms to invest up to a 10% stake in teams. The NFL is the last of the major professional sports to allow


PE investment, but the league softened its stance as rising valuations have made finding buyers increasingly difficult. Ares, which manages $450 billion in assets, was one of the four groups


that the NFL approved for investment in its teams. Meanwhile, Tsai has been building a sports empire. The chairperson of the Alibaba Group currently owns the Brooklyn Nets, New York Liberty


and operates the Barclays Center. He also owns the San Diego Seals and is co-owner of the Las Vegas Desert Dogs, both National Lacrosse League teams, in addition to Los Angeles FC of Major


League Soccer. _Correction: The San Diego Seals and the Las Vegas Desert Dogs are in the National Lacrosse League. An earlier version misstated the league they are in._ DON’T MISS THESE


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