Buffalo Bills Owners Terry and Kim Pegula Sell Minority Interest in Team Amid Rising Values, Stadium Costs and Controversial Player Contracts
Terry and Kim Pegula, the owners of the Buffalo Bills, have decided to sell a minority interest in their NFL team. The specific percentage of the team that will be sold has not been disclosed, but reports suggest it could be around 25 percent. This move is motivated by 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 league, like the Commanders going for $6.05 billion, have further highlighted the rising values of professional football franchises. However, due to league regulations, owners are prohibited from selling limited partnership stakes to private equity firms, limiting their options for raising capital.
In addition to this decision, construction costs for a new stadium for the Bills are also a factor that led to this move. Initially projected to cost $1.4 billion, the stadium’s expense could climb up to nearly $2 billion with Terry and Kim Pegula responsible for any overruns beyond state and county contributions. Despite these changes, they remain committed to Western New York and their other sports franchises while keeping control of the team through a sale of a minority stake.
More details on this sale are yet to be disclosed as part of an ongoing effort by Allen & Company to explore potential buyers for this stake in one of North America’s most valuable sports teams.
The Pegula family has been embroiled in controversy over their handling of player contracts and salary cap management since acquiring the Bills in 2014. Critics have accused them of being too aggressive with contract negotiations and cutting corners on player salaries while reaping significant profits from ticket sales and merchandise revenue.
As news spread about their plans to sell a portion of their ownership stake in the Buffalo Bills, there were mixed reactions among fans who expressed disappointment over what they saw as another step towards turning a beloved franchise into a corporate asset.
Despite concerns from some fans about what this means for the future direction of the franchise under new ownership or management structure, experts believe that such moves will not drastically change how much control Terry and Kim Pegula retain over day-to-day operations or how they run their business decisions.
The announcement comes just weeks before Super Bowl LVI takes place on February 6th at State Farm Stadium in Glendale Arizona where Rams will face Bengals.
