(Reuters) – The Buffalo Bills and Miami Dolphins made National Football League history on Wednesday as they became the league’s first clubs to sell a stake in their team to private equity firms.
The minority, non-controlling interests, which mean the firms do not have any voting or real decision-making power with the teams, were approved earlier on Wednesday at the NFL league meetings in Dallas, Texas.
Buffalo, who have a commanding four-game lead over Miami in the AFC East division with four weeks left in the regular season, sold a stake to Arctos Partners while Ares Management is acquiring a piece of the Dolphins.
In August, NFL owners voted to allow its 32 teams to pursue private equity funding, albeit only with pre-approved firms and only up to 10% of the franchise.
The Bills added 10 limited partners to its ownership group, including private investment firm Arctos Partners, marking the first time in the franchise’s history that minority owners have been added.
Also among the group added to the Bills’ ownership are Basketball Hall of Famers Vince Carter an Tracy McGrady and former U.S. national team soccer player Jozy Altidore.
“This has been an incredible journey to add such an impressive and diverse group of limited partners along with a reputable private equity partner in Arctos that has an extensive track record of success with professional sports franchises,” said Bills owner Terry Pegula, who along with his with Kim bought the team for $1.4 billion in 2014.
The Dolphins, which owner Stephen M. Ross purchased in 2009 for $1 billion, said investment firm Ares Management will acquire a 10% stake in the team.
In addition, the Dolphins said individual investors Joe Tsai and Oliver Weisberg, owners of the NBA’s Brooklyn Nets, will together will hold a 3% interest.
Ross, who will remain the controlling owner of the Dolphins, said in a news release the resources from this transaction will allow the team to prioritize investment into the Dolphins, additional sports assets and South Florida real estate.
(Reporting by Frank Pingue in Toronto, editing by Ed Osmond)
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