Chelsea investor in talks over massive £530m deal after nine-figure injection
Ares Capital is in discussions to become the first private equity firm to buy an NFL team, with the New York-based company in talks to buy a stake in the Miami Dolphins
by Richard Cusack, Frank Dalleres www.cityam.com · football.londonChelsea investor Ares Capital is reportedly in discussions with the owner of the Miami Dolphins, aiming to become the first private equity firm to acquire a stake in an NFL franchise. The asset manager, based in New York, is said to be negotiating the purchase of a ten per cent stake in the Dolphins' parent company, as per multiple reports.
This deal would value the company at approximately £6 billion and would also encompass the team's Hard Rock Stadium and Formula 1's Miami Grand Prix circuit. Just two months ago, NFL owners voted in favour of allowing the sale of minority stakes to private equity firms under very specific conditions.
Ares Capital is among a select group of investors that the league has pre-approved, which includes PE giant CVC, Paris Saint-Germain minority owner Arctos Partners, FC Barcelona supporter Sixth Street and others, as reported by City AM. Last year, the company injected £380m into Chelsea through a preferred equity deal and has amassed nearly £3bn for investing in sports properties and could now fork out £532m for ten per cent of the Dolphins.
It currently manages around £341bn in assets. The Dolphins are the property of billionaire Stephen Ross, who purchased the team in 2009 for just over $1bn.
The team is now estimated to be worth nearly $7bn. The success of the Miami Grand Prix has played a role in this valuation.
Revenue from ticket sales for this year's race surpassed that of all Dolphins home games. Ross had previously engaged in discussions about selling a stake to hedge fund manager Ken Griffin, who was part of a competing bid to buy Chelsea when Roman Abramovich sold to the current Todd Boehly-Clearlake consortium.
Relevent Sports Group, the company behind the International Champions Cup brand of pre-season matches and now assists leagues in selling their international media rights, is also owned by Ross.
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