The Pegula family has decided to sell a minority interest in the Buffalo Bills, as confirmed by the team to Tim Graham of TheAthletic.com. The exact percentage of the team being offered for sale has not been disclosed, but it is rumored to be around 25 percent. The family has hired Allen & Company to explore the potential sale of this non-controlling interest in the team.
In a statement to Graham, the team made it clear that any sale would only involve the Bills and no other team. The Pegula family will still maintain a controlling interest in the team, ensuring their continued commitment to Western New York, the Highmark Stadium, fans, and other teams in their portfolio. While Terry Pegula may ultimately choose not to sell part of the Bills, he is currently entertaining offers to become a limited partner due to the rising valuations of NFL teams and estate taxes.
The recent sale of the Commanders for $6.05 billion has highlighted the increasing value of NFL teams. According to Forbes, the Bills were valued at $3.7 million in August 2023, significantly more than the $1.4 billion Terry and Kim Pegula paid in 2014 to purchase the team. This reflects how much value has been added since then due to factors such as increased revenue from ticket sales and advertising deals with sponsors like PepsiCo and GEICO.
However, owning an NFL team also comes with significant costs that can make it challenging for sole ownership or limited partnerships with private equity firms due to strict rules set by league owners and executives who want to preserve their control over these franchises’ financial performance and future plans for growth or relocation if necessary.
The Bills’ new stadium was originally estimated to cost $1.4 billion but may end up closer to $2 billion, with the Pegulas responsible for any cost overruns beyond state and Erie County’s contributions of $600 million and $250 million respectively.
The sale of a minority interest in the Bills is a strategic move by the Pegula family as they navigate their role as owners while also managing their finances through changing market conditions and tax implications.
Overall, this news highlights how owning an NFL franchise can be both lucrative but also complex due
