The Pegula family, owners of the Buffalo Bills, have decided to sell a minority interest in the team, according to a report by Tim Graham of TheAthletic.com. While the specific percentage of the team up for sale has not been disclosed, reports suggest it could be around 25 percent. This move is motivated by several factors, including the increasing value of NFL teams and potential estate taxes that could impact sole ownership.
Recent sales in the NFL, such as the Commanders going for $6.05 billion, have further highlighted the rising values of professional football franchises. However, league regulations prohibit owners from selling limited partnership stakes to private equity firms, limiting their options for raising capital.
The construction of a new stadium for the Bills is also a factor in the decision to sell part of the team. Initially projected to cost $1.4 billion, the stadium’s expense could climb to nearly $2 billion if there are any overruns beyond state and county contributions. Despite this development, Terry Pegula and his family remain committed to Western New York and their other sports franchises while maintaining control over their beloved NFL team.
Further details on this sale have not yet been disclosed.
In summary, it has been reported that Terry Pegula and his family will sell a minority interest in their Buffalo Bills franchise for an estimated value of around $3.7 million (as per Forbes), significantly higher than what they paid in cash ($1.4 billion) back in 2014 when they acquired it entirely.
This move was motivated by rising values of professional football franchises and potential estate taxes that could impact single ownership. The construction of a new stadium for the Bills is also considered as one of the factors behind this decision.
Despite these developments, Terry Pegula and his family remain committed to Western New York and their other sports franchises while retaining control over their beloved NFL team.
Further details on this sale are yet to be disclosed but it’s evident that this move marks significant changes within one of America’s most popular sports teams.