Buffalo, N.Y. (WBEN) - Back in April, it was revealed that Buffalo Bills owner Terry Pegula was exploring the potential sale of a minority, non-controlling stake in the team with the help of the investment firm Allen & Company.
Tim Graham of The Athletic reported the working figure of the minority stake was 25%, but that number was not set in stone at the time.
A little more than four months later, a report in the Sports Business Journal said the NFL will try to ensure the sale of a minority portion of the Bills in a private equity deal before the end of the year. NFL commissioner Roger Goodell called a special owners meeting last week to outline the league's desire to resolve any team minority stake sales to private equity funds before 2024 comes to a close.
The NFL will next hold a special owners meeting on Tuesday, Aug. 27 to discuss this deal and several similar proposals across the league, with a potential vote on any minority deal coming as well.
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John Cimperman from Barnstorm Sports & Entertainment says the timing of this minority ownership deal for the Bills does not surprise him.
"You see the trend in professional sports, as the values increase of these clubs, these franchises, it's commonplace now that minority partners come into the fold. This isn't unique to Buffalo, it's happening across the sports landscape," said Cimperman in an interview with WBEN.
While minority ownership deals like this vary from circumstance-to-circumstance, Cimperman says these processes usually take anywhere from 6-to-9 months to play out.
"Most recently, there was a minority interest in the Cleveland Guardians, and obviously an ownership change in Washington with the Commanders. So 6-to-9 months is fairly average on these deals," he noted.
Cimperman says fans should not be alarmed by the idea of Pegula selling a minority stake in the team. He rather sees this as a positive in today's sports landscape.
"First of all, diversity of ideas, diversity of thoughts, diversity of experiences are all positives. So this minority partner may bring some other ideas to the table," Cimperman explained. "The other part of this is, potentially, part of a succession plan. There are very few NFL teams or franchises across the country that really have sole family ownership. I think this also helps for future planning, not that there's anything on the horizon. But having additional partners does provide, if and when, there ever wanted to be an ownership transition."
Cimperman feels the timing of this minority sale with the Bills makes total sense.
"The value of the Bills and NFL franchises is at an all-time high. So a minority interest of the team is probably more than [what] the Pegulas purchased the team for originally. So the value, that's not surprising," Cimperman said. "I do think the popularity of the Bills, the Buffalo Bills are not a local brand. NFL teams are national and, in this case, international brands. So we're not limited by our geography on the value of the team."
Another wrinkle into this minority ownership sale is what's happening across the street on Abbott Road with the construction of the new Highmark Stadium, which remains on schedule to be completed in 2026.
"I don't know this to be the case, but potentially this minority investor has interest in ancillary development. The Bills have went on record that they're not interested in developing around the new venue. But maybe, just maybe, this additional partner is." Cimperman pondered. "I think it's a way to maybe to add some value, and I don't think it's a surprise, because, quite frankly, the addition of the stadium also adds value to the franchise."
The Pegulas originally paid $1.4 billion to buy the Bills back in 2014.