Although this is the first time the Pegulas have been prepared to bring in a limited partner, The Athletic said, they may ultimately decide not to sell a portion of the Bills.
In a transaction mediated by Allen & Company managing director Steve Greenberg, the Pegulas acquired the Bills in 2014 for an NFL record US$1.4 billion. The team was valued at US$3.7 billion according to Forbes’ most recent NFL estimations, while the average franchise in the league was valued at US$5.1 billion.
Reports from August of last year stated that the Bills could be responsible for up to $300 million in cost overruns on their new stadium, which is scheduled to open in June 2023. The presence of a limited partner would allay fears about funding.
Working with Allen & Company is nothing new.
Due to the exorbitant cost of NFL franchises, fewer people are able to invest in them despite their great value. As far as major US professional sports leagues go, only the NFL forbids institutional investment. But prior to any regulatory changes that would control institutional money in the NFL, it was reported earlier this month that private equity firms were setting up money to invest in the NFL.
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