(Bloomberg) — The NFL entered a new era Wednesday by allowing private equity firms’ first investments in teams.
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League owners voted to approve the sale of two 10% stakes, the maximum allowed to be acquired by institutional investors under new ownership rules set earlier this year. The Miami Dolphins are selling to Ares Management, while Arctos Partners is acquiring a stake in the Buffalo Bills, according to the teams. Bloomberg previously reported that both deals were in the works.
The move has the potential to boost team valuations that were already on the rise. Owners said adding another group of deep-pocketed investors would help finance big projects like the stadium renovation.
The league also approved acquisitions by individual investors. Joe Tsai, co-founder of Alibaba and owner of the Brooklyn Nets, is buying a 3% stake in the Dolphins. A large group of investors acquires about 11% of the bills.
The Philadelphia Eagles are selling 8% to two groups of investors: Susan Kim, executive vice president of Amkor Technology, and Zac Peskowitz and Olivia Peskowitz Suter, children of Ed Peskowitz, founder of United Communications Group, sources say close to the file. The transaction values the team at $8.3 billion.
(Updates throughout first paragraph.)
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