The Pegula family has made the decision to sell a minority interest in the Buffalo Bills, as confirmed by the team to Tim Graham of TheAthletic.com. Although no specific percentage of the team is yet disclosed, reports suggest it could be around 25 percent. The family has enlisted Allen & Company to explore potential sale options while emphasizing that Terry Pegula and the family will retain control of the team.
The motivation behind this move is two-fold: firstly, there are rising values in NFL teams, and secondly, 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 have further highlighted this trend, such as the Commanders going for $6.05 billion. However, league regulations prohibit owners from selling limited partnership stakes to private equity firms, limiting their options for raising capital.
Another factor contributing to this decision is the construction of a new stadium for the Bills, which was initially projected to cost $1.4 billion but could now reach nearly $2 billion if overruns occur beyond state and county contributions. Despite considering selling part of the team, Terry Pegula remains committed to Western New York and his other sports franchises while continuing his commitment to building a new stadium for his beloved Buffalo Bills franchise.
Further details on this sale are yet to be disclosed as this news emerges amidst an exciting season for football fans worldwide who eagerly await more updates on this developing story.