Pegula sells a stake in the Bills according to the Sports Business Journal

[BearNorth]

1 hour ago, Buffalo03 said:

I thought he already gave 25% to his daughter? Why do they need to do this?

I think she was given like 2% so that she could be a rep at owners meetings with Kim unable to be there.

[Mr. WEO]

Just now, Bruffalo said:

For now, you're absolutely correct. They don't have any control.

 

Let's please keep it that way.  I don't want to throw around slippery slope arguments but I would be lying if I wasn't concerned. 

 

minority owners have existed for years in the NFL.  It's not a problem, and can't be.

 

This was inevitable and makes sense.  The financial value of an NFL team isn't material to an owner until he sells the team (obviously the tens or hundreds of millions in annual margin every year is nice too).   What better way to put a large chunk of money in your pocket than cashing out a bit of your team while still controlling everything and owning the vast majority of the team's value?

 

The crazy increases  over the last 5-10 years and current valuations made this too tempting for the owners to pass up. 

 

This could be good for the public actually.  Owners trying to steal taxpayer money from a municipality for a new stadium may meet with a local/state negotiating team who can point out that the team owner can easily fund all or most of his new stadium by selling part of his team. 

[BuffaloRebound]

With private equity now involved, expect every penny to be squeezed out of fans and ticket holders if it wasn’t already.  

[Mr. WEO]

12 hours ago, Mike in Horseheads said:

Pegula's retain 90% of the team, the other 10% group really has no say in the operation of the franchise just looking to make money.  I have no problem with who ever owns that small share

 

1 hour ago, BillsShredder83 said:

Article has his at 79.1%.  I get similar looking #'s, but 79% and 90% feels like ocean's apart

It's 79% yes.  

 

1 hour ago, Buffalo03 said:

I thought he already gave 25% to his daughter? Why do they need to do this?

 

other than giving away 25% for nothing vs giving away 20% for 1.1 billion?  

 

No reason I can think of...

[JakeFrommStateFarm]

12 hours ago, SoonerBillsFan said:

He is using this money to cover the cost overruns.  

I think the fans will pick up the cost of the overruns by buying increased PSLs

[Mr. WEO]

3 minutes ago, JakeFrommStateFarm said:

I think the fans will pick up the cost of the overruns by buying increased PSLs

 

you're right.  he won't use this windfall to pay for his obligation toward cost of building.

 

This is for the family lifestyle fund. 

[SoonerBillsFan]

46 minutes ago, JakeFrommStateFarm said:

I think the fans will pick up the cost of the overruns by buying increased PSLs

Unfortunately 

[T.E.]

2 hours ago, Sojourner said:

I would expect, if the Pegulas don’t want to inherit the club; I know his children with Kim are hardcore Buffalonians so I’d think they do, it goes to the NFL board to approve the majority share holder like they’ve done in the past regarding someone becoming a majority shareholder? 

I hope so. Inheriting a team can sometimes not make sense financially due to tax implications; hope that won't be the case here.

[RiotAct]

59 minutes ago, JakeFrommStateFarm said:

I think the fans will pick up the cost of the overruns by buying increased PSLs

wait so how would this work?  They would up the cost of the PSLs on sections that are actively being sold as we speak?

[Mat68]

1 hour ago, BearNorth said:

I think she was given like 2% so that she could be a rep at owners meetings with Kim unable to be there.

Giving his daughter 25 doesnt increase their revenue.  Imo the 10% is to cover the out of pockets for the new stadiums.  Yes, Pegula has the assets to liquidate to generate significant amount of capital. This seems like the easiest way of getting it imo.  

[FLFan]

4 hours ago, BillsShredder83 said:

Article has his at 79.1%.  I get similar looking #'s, but 79% and 90% feels like ocean's apart

He is actually selling just over 20% of the team.  10% to a previously announced venture capital firm (Artec Partners) and 10.9% to this new group.  

[EasternOHBillsFan]

Well, those of you defending this venture capital nonsense let me know how this goes in a couple of years... Subway is TERRIBLE now since owned by Roark.

 

https://www.cnn.com/2024/11/19/food/jersey-mikes-subs-sale/index.html

[Stads]

On 11/18/2024 at 9:14 PM, ToGoGo said:

Whoa. That’s a lot of minority owners all of a sudden. 

How do you know they're not white?

[Saxum]

11 hours ago, BuffaloRebound said:

With private equity now involved, expect every penny to be squeezed out of fans and ticket holders if it wasn’t already.  

 

Squeeze @Mike in Horseheads - he will enjoy it like a big hug.

[Mike in Horseheads]

1 minute ago, Saxum said:

 

Squeeze @Mike in Horseheads - he will enjoy it like a big hug.

Whats your problem? FFS, sorry I pissed you off

[PromoTheRobot]

2 hours ago, EasternOHBillsFan said:

Well, those of you defending this venture capital nonsense let me know how this goes in a couple of years... Subway is TERRIBLE now since owned by Roark.

 

https://www.cnn.com/2024/11/19/food/jersey-mikes-subs-sale/index.html

 

VC money never makes anything better. In fact the usual M.O. is to squeeze every nickel out by slashing costs and dump the lifeless body.

12 hours ago, JakeFrommStateFarm said:

I think the fans will pick up the cost of the overruns by buying increased PSLs

 

Do you understand how PSL's work?

On 11/18/2024 at 11:18 PM, Mango said:

God, I wish he’d sell the Sabres. 

 

Why? So they can move? Sit tight. This is their year. We lived through a 17 year drought with the Bills, 13 years with the Sabres is nothing.

[Jauronimo]

On 11/18/2024 at 9:48 PM, Lost said:

 

They never care about the product just the dollars they can extract from it.

This country has been going to hell ever since PE/VC invented the profit motive.

Edited November 20 by Jauronimo

[Mikie2times]

On 11/18/2024 at 6:07 PM, GASabresIUFan said:

https://www.sportsbusinessjournal.com/Articles/2024/11/18/nfl-private-equity-miami-dolphins-buffalo-bills?publicationSource=closingbell&issue=47e40ffb9cff4644a4bc230be8fb6958

 

Well that’s interesting, I know Gridiron very well. They’re fantastic. Can’t say enough about them really. 

[US Egg]

On 11/18/2024 at 11:24 PM, SoonerBillsFan said:

He is using this money to cover the cost overruns.  

Just saw where the stadium is creeping to near a $1 Billion overrun and likely to increase.
 

In any other world you’d likely see a for sale sign.

[GoBills!]

Great now if you don’t prepay parking by Thursday online you will be charged an additional $20 processing fee on Sunday. 
 

That’s how venture capitalist inject themselves into a business like this…