Stephen Ross, chairman and CEO of Related Companies, has not shown any intention to sell the Miami Dolphins, despite the team’s struggles in the NFL standings. The financial implications of such a sale are significant, with capital gains taxes posing a major obstacle.
According to reporting by the Miami Herald, selling his majority stake in the franchise could result in a tax bill exceeding $1 billion if the transaction were valued at $10 billion and included both his share of the team and Hard Rock Stadium. Last year, when Ross sold 13 percent of the team to private equity firm Ares and Brooklyn Nets owner Joe Tsai, it likely led to more than $150 million in capital gains taxes.
Ross first invested in the Dolphins in 2008, acquiring 95 percent of the franchise for $1 billion. He has since invested over $700 million into renovations at Hard Rock Stadium. Under his ownership, the venue has hosted events such as Formula 1 races, the Miami Open tennis tournament, and is set to host FIFA World Cup games next year.
If Ross’s family were to sell the team after his death, they could avoid capital gains tax due to IRS rules. However, this would trigger an estate tax estimated at more than $2.5 billion that would need to be paid within nine months.
There have been attempts by other wealthy individuals to purchase the Dolphins. Citadel founder Ken Griffin reportedly tried to acquire the team from Ross but talks did not progress. An unnamed buyer also made a $10 billion bid for the franchise within the past two years without success.
Ross appears committed to keeping ownership within his family. Three years ago, he named his daughter Jennifer as his successor with the Dolphins. Bruce Beal, president of Related Companies, was previously considered for succession but was passed over after Ross and Beal were penalized by the NFL for violating anti-tampering policies during recruitment efforts involving Tom Brady and Sean Payton.
