Ares Management and billionaire Joe Tsai are in advanced talks to purchase a minority stake in the Miami Dolphins football team.

• A source close to the matter reveals that the Miami Dolphins are in advanced negotiations to sell a portion of their ownership.
• The buyers include private equity firm Ares Management and billionaire Joe Tsai.
• The deal would value the Dolphins at $8.1 billion.

Ares Management and billionaire Joe Tsai are in advanced talks with the Miami Dolphins to purchase a minority stake in the team, according to CNBC. This trend highlights the increasing practice of sports team owners seeking to expand their portfolios and manage their own stadiums in order to maximize revenue.

The negotiations have valued the assets at $8.1 billion, including the deal for Hard Rock Stadium, the Miami Grand Prix F1 race, and about half of the Miami Open.

Since the NFL approved new finance rules in August, this is the first private equity investment for the league.

The Miami Dolphins have been valued by CNBC as the eighth most valuable team in the league, with an estimated worth of $7.1 billion, excluding the stadium.

The person said that as part of the negotiations, Ares Management would purchase 10% of the team and Tsai, owner of the Brooklyn Nets, is in discussions to acquire another 3% stake. Bloomberg previously reported on these talks.

No deal has been signed and there is no timeline for a potential agreement, the person stated.

The Miami Dolphins and the NFL did not provide any comment, while Tsai's BSE Global did not respond to a request for comment.

Businessman Stephen Ross purchased the Miami Dolphins in 2009 for $1.1 billion.

Ross, who is also the CEO of Related Companies, is among a select few team owners who both own and operate the stadium, thereby generating revenue from events such as the Miami Grand Prix and Miami Open tennis tournament.

The Dolphins made $673 million in revenue in 2023.

This year, Ross allegedly rejected a $10 billion proposal for control of the team, Formula One Miami Grand Prix, and Hard Rock Stadium, stating his desire to maintain the team within his family.

In August, NFL owners approved a 10% stake investment in teams by private equity firms.

The NFL is the final major professional sports league to permit PE investment, but the league has relaxed its stance as escalating valuations have made it harder to locate buyers.

The NFL approved Ares, which manages $450 billion in assets, as one of the four groups for investment in its teams.

Tsai has been constructing a sports empire by owning and operating several teams in various leagues, including the Brooklyn Nets, New York Liberty, San Diego Seals, Las Vegas Desert Dogs, and Los Angeles FC.