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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 specific percentage of the team up for sale has not been disclosed, with reports suggesting it could be around 25 percent. The family has enlisted Allen & Company to explore the potential sale, emphasizing that Terry Pegula and the family will maintain control of the team. This move is motivated by the increasing value of NFL teams and potential estate taxes that could impact sole ownership.
The construction of a new stadium for the Bills is also a factor in the decision to sell a minority interest. Initially projected to cost $1.4 billion, the stadium’s expense could climb to nearly $2 billion, with the Pegulas responsible for any overruns beyond the state and county contributions. Despite this potential sale of part of the team, the Pegula family remains committed to Western New York, their other sports franchises, and their long-term vision for the Bills organization.
Recent sales in professional football franchises have further highlighted rising values in NFL teams. Forbes estimated that the Bills’ value increased from $3.7 million in August 2023 to $1.4 billion in cash when Terry and Kim Pegula acquired them in 2014 – an increase significantly higher than other sales in recent years like those of Washington Commanders going for $6 billion or $6 billion plus change, respectively. However, due to league regulations prohibiting owners from selling limited partnership stakes to private equity firms, raising capital becomes more challenging for NFL teams looking to expand their operations or develop new facilities like stadiums or training centers.
In conclusion, while Terry and Kim Pegula remain committed to maintaining control over their beloved Buffalo Bills franchise through this partial sale, they recognize that there are factors at play such as rising team values and potential estate taxes that require careful consideration as they continue their long-term plans for success on both and off-the-field.
