The Pegula family has announced that they will sell a minority interest in the Buffalo Bills, as confirmed by the team to Tim Graham of TheAthletic.com. Although the specific percentage of the team up for sale has not been disclosed, reports suggest 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 several factors, including the increasing value of NFL teams and potential estate taxes that could impact sole ownership. Forbes estimated the Bills’ value at $3.7 million in August 2023, significantly higher than the $1.4 billion Terry and Kim Pegula paid in cash to acquire the team in 2014. Recent sales in the NFL, like the Commanders going for $6.05 billion, have further highlighted the rising values of professional football franchises.
The league’s regulations prohibit owners from selling limited partnership stakes to private equity firms, limiting the options for raising capital. However, this does not prevent owners from selling partial ownership stakes to other individuals or entities who meet certain criteria set forth by league regulations.
Another factor contributing to this decision is the construction of a new stadium for the Bills. Initially projected to cost $1.4 billion, with any overruns beyond state and county contributions falling on Terry Pegula and his family’s shoulders, this project has put a strain on their finances and led them to consider selling a portion of their stake in order to raise additional funds without compromising control over their beloved franchise.
Despite these challenges, however, Terry Pegula remains committed to Western New York and his other sports franchises while exploring this new avenue for financing.
Further details on this transaction are yet to be disclosed at this time but one thing is clear – The Bills are still an important part of Terry Pegula’s legacy in Buffalo and he wants them to remain so for years to come.
