Stephen Ross, chairman and CEO of Related Companies, has shown no public interest in selling the Miami Dolphins despite the team’s current struggles in the NFL standings. According to reporting from the Miami Herald, one major factor deterring a potential sale is the significant capital gains taxes that would be triggered.
Ross became majority owner of the Dolphins in 2009 after initially investing in 2008. Over time, he has reduced his stake to about 84.5 percent by selling portions of ownership. Last year, he sold a 13 percent share to private equity firm Ares and Brooklyn Nets owner Joe Tsai, a move that likely resulted in over $150 million owed in capital gains taxes.
If Ross were to sell his remaining share and related Hard Rock Stadium property for an estimated $10 billion, he could face more than $1 billion in capital gains tax liability. While it is possible for his family to avoid this tax if they wait until after his death to sell, they would instead face an estate tax potentially exceeding $2.5 billion, which would need to be paid within nine months.
Ross has invested heavily into the franchise since acquiring it—putting more than $700 million into stadium renovations and securing events such as Formula 1 races, the Miami Open tennis tournament, and next year’s FIFA World Cup matches at Hard Rock Stadium.
In recent years there have been attempts by high-profile buyers to acquire the Dolphins. Citadel founder Ken Griffin reportedly engaged in discussions with Ross but no deal was reached. Another unnamed buyer made a $10 billion bid for the team within the past two years without success.
Ross appears intent on keeping ownership within his family. Three years ago he named his daughter Jennifer as his successor with the franchise. Previously considered successor Bruce Beal was passed over around the time both Beal and Ross were penalized by the NFL for violating anti-tampering rules during recruitment efforts involving Tom Brady and Sean Payton.
“Three years ago, he elevated his daughter, Jennifer, to be his successor with the Dolphins.”
