The Pegula family has decided to put a minority interest in the Buffalo Bills up for sale, as confirmed by the team to Tim Graham of TheAthletic.com. The exact percentage of the team being offered for sale has not been disclosed, but 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.
In a statement to Graham, the team made it clear that any sale would only involve the Bills and no other team. The Pegula family will still maintain a controlling interest in the team, ensuring their continued commitment to Western New York, the Highmark Stadium, fans, and other teams in their portfolio. While Terry Pegula may ultimately choose not to sell part of the Bills, he is currently entertaining offers to become a limited partner due to the rising valuations of NFL teams and estate taxes.
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. The recent sale of the Commanders for $6.05 billion has highlighted the increasing value of NFL teams. The NFL does not allow owners to sell limited partnership stakes to private equity firms, making it challenging for sole ownership.
The Bills’ new stadium was originally estimated to cost $1.4 billion but may end up closer to $2 billion, with the Pegulas responsible for any cost overruns beyond the state and Erie County’s contributions of $600 million and $250 million, respectively. The sale of a minority interest in the Bills is a strategic move by the Pegula family to navigate the financial landscape of owning an NFL team.