BREAKING: Buffalo Bills in Talks to Sell Stake to PE Firm Arctos

Arctos Partners may soon add another team to its portfolio, as the investment firm is reportedly in discussions to acquire a minority stake in the Buffalo Bills, Bloomberg reports. If the deal proceeds, the NFL team would join Arctos’ growing list of sports assets, which already includes Paris Saint-Germain and the PGA Tour.

While Arctos declined to comment and the Bills did not immediately respond, any acquisition would require NFL approval. Arctos is one of the private equity firms cleared to purchase stakes in teams, following a rule change in August that allows PE firms to own up to 10% of a team. Dolphins owner Stephen Ross is already leveraging this rule, selling a 10% stake to the approved firm Ares and an additional 3% to Joe Tsai, who owns the Nets and Liberty.

The Bills have been pursuing a minority investor since April when team owner Terry Pegula engaged investment bank Allen & Company to explore options. Details about the potential stake size and valuation remain undisclosed, though Forbes values the Bills at $4.2 billion, making it the least valuable NFL team. Pegula, whose fortune largely stems from natural gas, is estimated to be worth $7.6 billion.

As sports continue to attract investors seeking steady returns, Arctos noted last month that NFL franchises have achieved an average annual revenue growth of 8.6% since 2001, excluding the COVID-19 period. The firm emphasized that franchises not only have reliable revenue growth but also demonstrate low volatility compared to other U.S. equity sectors, even during economic downturns.