ORCHARD PARK, N.Y. (AP) — Buffalo Bills owners Terry and Kim Pegula are exploring the possibility of selling a non-controlling minority interest in the franchise, the team announced Friday.
A person with knowledge of the decision told The Associated Press that Pegulas' stake in the team he is preparing to sell will be about 25%. The person spoke on condition of anonymity because details have not been released by the team. The Athletic first reported.
The Bills announced that Pegula's has hired Allen & Company to oversee the process, but stressed that the sale will not occur unless Pegula's maintains control of the franchise.
The Bills also said the sale is limited to the Bills and does not include Pegulas' other holdings, including the NHL's Buffalo Sabres, the American Hockey League's Rochester Americans, and the Buffalo and Rochester National Lacrosse League franchises. It was announced that.
The prospect of selling a stake in the Bills comes as the team faces financial difficulties due to soaring construction costs for the team's new stadium, which is under construction across the street from its current facility and is scheduled to open in 2026.
When preliminary agreements were signed with the state and county in March 2022, the stadium's initial cost was set at $1.4 billion. That number jumped to $1.54 billion a few months later, and was last expected to approach $1.7 billion in August.
Under the terms of the agreement, the bill pegs the public share at $850 million and is responsible for covering cost overruns of more than $1.4 billion.
In August, manager Terry Pegula disbanded Pegula Sports and Entertainment, the parent company of the Bills and Sabers, opting to operate them as so-called “separate entities” to streamline operations for both teams.
The sale of the Bills' stock comes as speculation continues to mount about whether the Pegulas are interested in selling the Sabres. Another person with direct knowledge of the Pegulas' plans told The Associated Press that the Sabers are not for sale.
The Pegulas, who made their fortune in the natural gas industry, have a reported net worth of $6.8 billion. They bought the Bills in 2014 for a then-NFL record $1.4 billion. Last year, Forbes magazine valued the Bills at $3.7 billion.
Since Kim Pegula went into cardiac arrest in June 2022, she has been unable to perform her duties due to severe language and memory problems.
