Stephen Ross Wants To Sell His F1 And Miami Dolphins Shares

Billionaire Stephen Ross owns a sizeable, non-voting interest in Hard Rock Stadium, the Miami Dolphins, and the F1 Miami Grand Prix.

The sale of the sports properties was first reported by Andy Slater at Fox Sports 640 earlier today, who said Ross was in preliminary talks with hedge fund billionaire Ken Griffin. Forbes has learned that other potential investors are also kicking the tires and that it is possible that more than one investor buys a piece of the assets.

One person familiar with the sale book says the enterprise value for a minority stake of the assets will exceed the $6.05 billion sale for full ownership of the Washington Commanders in July, which makes sense when you consider the enormous cash the properties generate.

With operating income (earnings before interest, taxes, depreciation, and amortization) of $111 million for the 2022 season, the Dolphins were valued in August at $5.7 billion, ranking 11th in the NFL. The $111 million operating income does not include the F1 Miami Grand Prix and Miami Open tennis, which are part of a long-term joint venture with Endeavor Group Holdings and are not owned by Ross. Instead, it includes over $35 million from non-NFL stadium events, such as soccer and concerts. According to a 15-year agreement with Formula One, Ross owns the F1 Miami Grand Prix, which got underway in 2022 and is expected to make between $350 million and $500 million in operating profits during that time.

The debt for the football team and its stadium is estimated to be $640 million.

For $550 million in 2008, Ross purchased the stadium, half of the football team, and some surrounding real estate from Wayne Huizenga. He acquired an additional 45% from Huizenga in 2009, giving the two-part acquisition an enterprise value of $1.1 billion. Since 2008, Ross has made over $1 billion in investments in Hard Rock Stadium and the team, as well as over $4 billion in south Florida real estate.

Additionally, according to someone familiar with Ross’s plans, he wants to increase his real estate and sports investments. It makes sense that Ross would sell some stock in order to raise money for additional investments. According to a Forbes user, “Debt is expensive and sports properties have high valuations, which makes equity cheap.”