Nothing screams South Florida like the infamous Miami Dolphins football team.
From their vibrant aqua, orange, and white colors to their recognizable mascot, this team is a true embodiment of all that represents the sunshine state of Florida.
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The Miami Dolphins are the only NFL team to hold a perfect season record, winning all 17 games in 1972. The team has also won 13 AFC East division championships and five AFC titles, made it to the playoffs 25 times, and won two Super Bowl championships.
Profits aren't lacking for the Miami Dolphins either, as they are the eighth most profitable team in the NFL, with a valuation of $7.1 billion and revenue of $673 million.
But this week a recent development off the field could make that valuation obsolete.
The NFL reaches a decision that shakes up its ownership structure
Last month, the NFL owners voted to change the league's ownership structure, allowing private equity firms to buy up to a 10% stake in a team with a minimum six-year commitment.
As a private entity, the NFL has prohibited private firms from institutionally owning its teams since its inception in 1920.
Related: NFL change will make Wall Street very happy
However, after the ownership restructuring was passed, privately owned firms can now acquire a piece of their favorite NFL team if the owner approves.
The Miami Dolphins may become the first NFL team to join private equity
Owning the Miami Dolphins is a desirable investment since investors get a two-for-one deal when purchasing a stake in the football team.
The current owner of the Miami Dolphins, Stephen M. Ross, bought the NFL team for $1.1 billion in 2009. Since then, its value has exponentially increased by nearly eight times the original purchase price.
This week, people familiar with the transaction told Bloomberg that Ross has been in advanced talks with two private entities to sell a minority stake in the Florida football team.
According to the supposed deal, Ares Management would acquire a 10% stake in the team, the maximum a private equity firm can hold per the NFL's new ownership structure, while Joe Tsai would purchase a 3% stake through his family office Blue Pool Capital.
Aside from the Miami Dolphins team itself, the deal includes stakes in the Hard Rock Stadium, which the team owns. Additionally, investors also get a stake in the operating rights for the Miami Grand Prix Formula 1 race and around half of the Miami Open, with the deal valuing the franchise and its assets at about $8.1 billion.
Ares Management is a privately owned alternative investment manager corporation that the NFL previously pre-approved during the ownership restructuring proposition.
Tsai is a billionaire and seasoned sports league owner who owns the NBA's Brooklyn Nets and the WNBA's New York Liberty.
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However, this is not the first time the Miami Dolphins owner has been approached with an offer on his team.
Earlier this year, Ross rejected an investor's $10 billion offer to acquire the Miami Dolphins along with all other holdings because he wanted to keep the team and assets under family ownership.
If this rumored new deal goes through, the Miami Dolphins will become the first-ever NFL team with a private equity ownership stake.
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