The Bills will need to secure $1.2 billion, and possibly more, for their new stadium, partly due to cost overruns exceeding half a billion dollars. One way to raise funds is by selling off some equity.
According to Ben Fischer of Sports Business Journal, the Bills have agreements to sell over 20 percent of the franchise. A group of business executives will acquire 10.6 percent, while private-equity firm Arctos Partners will purchase 10 percent.
Both deals will need to be approved by the NFL.
If the deals are approved, Terry and Kim Pegula will maintain ownership of over 79 percent of the team. They purchased the franchise for $1.4 billion in 2014 from the estate of Ralph Wilson.
The financial details of the minority stakes have not been disclosed. However, the team’s valuation is likely much higher than the $1.4 billion price from a decade ago. In reality, the Pegulas will likely recoup most of what they paid for the entire team by selling just over 20 percent of it.
