For Sale: Pegula Family’s Minority Interest in Buffalo Bills as Team Valuations Soar and NFL Ownership Becomes Increasingly Complex

The Pegula family has announced that they are putting a minority interest in the Buffalo Bills up for sale, as confirmed by the team to Tim Graham of TheAthletic.com. While the exact percentage of the team being offered for sale has not been disclosed, it is rumored to be around 25 percent. The family has hired Allen & Company to explore the potential sale of this non-controlling interest in the team.

The Pegula family’s decision to sell a portion of their stake in the Bills comes at a time when NFL teams are experiencing rising valuations due to their popularity and increasing revenue streams. According to Forbes, the Bills were valued at $3.7 million in August 2023, significantly more than the $1.4 billion Terry and Kim Pegula paid in 2014 to purchase the team. This recent sale of the Commanders for $6.05 billion has only highlighted the increasing value of NFL teams, making it challenging for sole ownership.

While Terry Pegula may ultimately choose not to sell part of his stake in the Bills, he is currently entertaining offers from private equity firms who want to become limited partners due to rising valuations and estate taxes. However, this option is not available as per NFL rules, which prohibit owners from selling limited partnership stakes to private equity firms, making it difficult for sole ownership.

The Bills’ new stadium was originally estimated at $1.4 billion but may end up closer to $2 billion, with Terry and Kim Pegula responsible for any cost overruns beyond state and Erie County’s contributions of $600 million and $250 million respectively. Selling a minority interest in the Bills is a strategic move by the Pegula family that allows them navigate their financial landscape while maintaining ownership control over their beloved franchise.

Overall, this decision marks an important moment in Western New York sports history and highlights how owning an NFL team can be both financially rewarding and challenging at times