Buffalo Bills owners explore ‘25%’ minority stake sale in NFL franchise

April 22, 2024

Buffalo Bills owners explore ‘25%’ minority stake sale in NFL franchise

Terry and Kim Pegula hire Allen & Company to handle potential transaction.

25% working figure not set in stone, according to The Athletic

Pegulas may decide not to sell part of the Bills

Bills were acquired for US$1.4bn in 2014

Buffalo Bills owners Terry and Kim Pegula are exploring the potential sale of a minority stake in the National Football League (NFL) franchise.

The Pegulas have hired investment bank Allen & Company to handle the transaction but the Bills have not said how much of the team is being sold.

According to The Athletic, the Pegulas (pictured above) could part with around 25 per cent of the Bills, though the figure is not set in stone.

“The Pegula family has retained Allen & Company to explore the potential sale of a non-controlling, minority interest in the Bills,” the Bills in a statement to The Athletic. “These discussions only involve the Bills and no other team. No investment would be possible without Terry Pegula and the Pegula family maintaining a controlling interest in the team. Their continued commitment to Western New York, the new Highmark Stadium, our fans and the other teams in their portfolio remains unchanged.

“Neither the team nor the Pegula family are able to comment further at this point.”


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The Athletic added that the Pegulas may eventually opt not to sell part of the Bills, but this is the first time they have been ready to bring in a limited partner.

The Pegulas bought the Bills for a then-NFL record US$1.4 billion back in 2014 in a deal brokered by Allen & Company managing director Steve Greenberg. The team was valued at US$3.7 billion in Forbes’ latest NFL valuations, with the league’s average franchise put at US$5.1 billion.

According to reports last August, the Bills were facing cost overruns on their new stadium, which broke ground in June 2023, and are on the hook for as much as US$300 million. A limited partner would help ease financing concerns.

Allen & Company is no stranger to working with the NFL. The bank was brought in to handle the US$4.65 billion sale of the Denver Broncos to Walmart heir Rob Walton in 2022. It was also hired by Amazon founder Jeff Bezos last year to evaluate a bid for the Washington Commanders, who were eventually sold to a group led by Harris Blitzer Sports & Entertainment’s (HBSE) Josh Harris for US$6.05 billion, a record sum for a North American sports franchise.

NFL teams are highly valuable but expensive, meaning there is a shrinking pool of individuals that can afford to invest. The NFL remains the only major US professional sports league that does not allow institutional investment. However, it was reported earlier this month that private equity firms are preparing funds to invest in the NFL ahead of potential rule changes that will govern institutional money in the league.

Owners are expected to approve such investment as soon as next month, according to the Financial Times.

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