The Bills have not disclosed the exact amount of the franchise being sold…
The owners of the Buffalo Bills, Terry and Kim Pegula, are considering selling a portion of their minority ownership in the National Football League (NFL).
The Bills have not disclosed the exact amount of the franchise being sold, but the Pegulas have retained investment bank Allen & Company to manage the deal.
The Pegulas (seen above) may give up about 25% of the bills, according to The Athletic, though this amount is subject to change.
The Bills said in a statement to The Athletic that “the Pegula family has retained Allen & Company to explore the potential sale of a non-controlling, minority interest in the Bills.” “There is no other team involved in these discussions; only the Bills. Without Terry Pegula and the Pegula family keeping a majority stake in the team, no investment would be feasible. Their unwavering dedication to the other teams in their portfolio, Western New York, the new Highmark Stadium, and our supporters does not alter.
“At this time, neither the Pegula family nor the team are able to comment further.”
The Pegulas may ultimately decide not to sell a portion of the Bills, according to The Athletic, but this is the first time they have been prepared to bring in a limited partner.
Steve Greenberg, managing director of Allen & Company, arranged the NFL record $1.4 billion payment to the Pegula family in 2014 for the Bills. The team is valued at US$3.7 billion based on the most recent NFL valuations provided by Forbes, while the average franchise in the league is valued at US$5.1 billion.
Reports that surfaced in August of last year claim that the Bills are responsible for up to $300 million in cost overruns on their new stadium, which is slated to open in June 2023. A limited partner could ease concerns regarding money.
The NFL and Allen & Company have a long history of collaboration. The bank was brought in to manage the Denver Broncos’ US$4.65 billion sale to Walmart heir Rob Walton in 2022. Additionally, Jeff Bezos, the founder of Amazon, hired it to assess a bid for the Washington Commanders, who were ultimately acquired by a group headed by Josh Harris of Harris Blitzer Sports & Entertainment (HBSE) for a record-breaking US$6.05 billion.
Due to the exorbitant cost of NFL franchises, fewer people are able to invest in them, despite their great value. As far as the major US professional sports leagues go, only the NFL forbids institutional investment. But prior to prospective regulatory changes that will control institutional money in the NFL, it was reported earlier this month that private equity firms are setting up funds to invest in the NFL.
As early as next month, the Financial Times reports that owners are anticipated to approve such an investment.
