National Football League fans, specifically those of the Miami Dolphins, will likely be happy to learn that they can now invest in the team thanks to a rule allowing private equity investment.
What Happened: The Dolphins are among the first NFL teams to leverage the new minority investment rule, announcing several recent investments. This follows reports that Citadel LLC CEO Ken Griffin was once interested in buying the team.
The Dolphins announced Ares Management Corporation ARES is acquiring a 10% stake in the Miami Dolphins and several other assets. NBA team owners Joe Tsai and Oliver Weisberg, who own the Brooklyn Nets, will own 3% of the team going forward.
The minority investments were approved by the league on Wednesday.
The investment stake includes the Dolphins, Hard Rock Stadium, and the Formula 1 Crypto.com Miami Grand Prix, one of the annual American races of the Formula 1 motorsport league, owned by Liberty Media Corp FWONA.
"As we continue our relentless pursuit of building a best-in-class organization, we were fortunate to attract significant interest from multiple investors, which gave us the opportunity to be highly selective in choosing partners who align with our core values and long-term vision," Dolphins team owner Stephen Ross said.
Ross said the investments will help with future growth.
"We will prioritize continued investment into the Dolphins, additional sports assets and South Florida real estate to fuel dynamic growth and innovation in the region for years to come."
Ares Management, which is a leading global alternative investment manager covering credit, real estate, private equity and infrastructure investments has $464 billion in assets under management.
The company is an investor in several professional sports teams already, including McLaren Racing, Atlético de Madrid and Inter Miami CF, the MLS team that Lionel Messi plays for.
"We look forward to working with Steve to continue unlocking new and exciting opportunities ahead," Ares co-head Sports, Media & Entertainment Mark Affolter and Jim Miller said.
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Why It's Important: Prior to this week's announcement, there have not been many ways to invest in NFL teams. The league's Green Bay Packers are the only publicly owned team, but it comes with many differences from a typical public franchise. Owners of the Packers do not collect dividends and can't sell their stake.
Along with the Dolphins news, the NFL approved minority sales of the Buffalo Bills, Las Vegas Raiders and Philadelphia Eagles. None of those sales included ways for the typical investor to own a stake in the teams.
The other North American professional sports leagues offer ways for investors to invest in teams with the likes of Madison Square Garden Sports MSGS, Blue Owl Capital OWL, Rogers Communications RCI and Atlanta Braves Holdings BATRA owning stakes in teams.
The Dolphins were founded in 1966 and became a member of the NFL in 1970 when the AFL and NFL merged. The team was valued at $6.76 billion in the most recent Sportico valuations list, ranking seventh among NFL teams. The Dallas Cowboys ranked first at $10.32 billion.
In the 2024 season, the Dolphins hold a 6-7 record and now have a distant chance of making the NFL Playoffs with current odds of +400 from sportsbook DraftKings Inc DKNG. The team has odds of +25,000 to win Super Bowl LIX.
In its NFL history, the Dolphins have had two Super Bowl wins and five appearances in the championship game. While the team made back-to-back appearances in the NFL Playoffs for the 2022 and 2023 seasons, the team's last playoff win came in the 2000 season.
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