The owners of the Buffalo Bills, Terry and Kim Pegula, are considering selling a non-controlling, minority interest in the franchise. This decision was made in order to help with the rising construction costs of the team’s new stadium, which is scheduled to open in 2026. The initial cost of the stadium was estimated at $1.4 billion but has since increased to nearly $1.7 billion, with the Bills being responsible for any cost overruns beyond the initial $1.4 billion. The Pegulas have hired Allen & Company to oversee the process of selling shares in the team, with the stipulation that they will retain a controlling interest in the franchise.
The sale of shares in the Bills is limited only to the football team and does not include any of the Pegulas’ other sports holdings, such as the NHL Buffalo Sabres, the AHL Rochester Americans, and National Lacrosse League franchises in Buffalo and Rochester. The Pegulas, who made their fortune in the natural gas industry, have a reported net worth of $6.8 billion. They purchased the Bills for a then-NFL record of $1.4 billion in 2014, and last year Forbes valued the team at $3.7 billion. The decision to sell shares in the Bills comes at a time when speculation is growing over whether the Pegulas are also interested in selling the Sabres, but a source has confirmed that the hockey team is not up for sale.
The sale of a minority stake in the Bills is part of a larger effort by the Pegulas to address the financial challenges associated with the stadium construction project. In August, Terry Pegula chose to separate the Bills and Sabres into separate entities by dissolving their parent company, Pegula Sports and Entertainment, in order to streamline operations. The Pegulas are committed to maintaining a controlling interest in the Bills throughout this process, ensuring that the team remains under their ownership and control. This decision comes at a time when Kim Pegula is facing health issues after experiencing significant language and memory problems following a cardiac arrest in June 2022.
The Bills’ new stadium is being built across the street from their current facility, and the rising construction costs have put pressure on the team financially. The Pegulas have taken steps to address these challenges, including exploring the possibility of selling a minority stake in the franchise to help cover the costs. The sale of shares in the Bills is a strategic move to ensure the long-term financial stability of the team while also allowing the Pegulas to retain control over the franchise. The team’s new stadium is expected to open in 2026, and the Pegulas are hopeful that this investment will help secure the Bills’ future success both on and off the field.
