Arctos Partners in Talks to Buy Stake in NFL’s Buffalo Bills

Arctos Partners LP, a private equity firm with a focus on sports investing, is in talks to acquire a stake in the National Football League’s Buffalo Bills, people familiar with the discussions told CIO.

There is not yet a conclusive outcome to the ongoing discussions, but parties are hopeful, according to the source. The firm would likely buy a stake from the Bills’ owners, Terry and Kim Pegula, who purchased the team for $1.4 billion in 2014. A spokesperson for Arctos Partners declined to comment.

In April, the Pegulas hired investment bank Allen & Co. to explore a minority stake sale of up to 25% of the Buffalo, New York-based team, according to reports. The NFL’s decision on allowing private equity investment came shortly after.

The NFL announced in August that, for the first time, private equity firms on an approved list may invest in its teams. The initial list included Arctos, CVC Capital Partners, Dynasty Equity, Ares Management, Ludis Capital, Blackstone and the Carlyle Group.

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Under the NFL’s rule, firms are eligible to acquire from 3% through 10% of a team, and teams can sell stakes to multiple firms. Each selected private equity firm is eligible to invest in up to six teams.

Earlier this month, it was reported that Ares Management was in talks with the Miami Dolphins, owned by Stephen Ross, to acquire a stake in that team.