Stephen Ross, owner of the Miami Dolphins, is unlikely to sell the team despite its current poor performance in the NFL. The Miami Herald has reported that capital gains taxes are a major factor discouraging a sale. If Ross were to sell his 84.5 percent stake in the Dolphins and the Hard Rock Stadium for $10 billion, he could face over $1 billion in capital gains taxes.
Ross, who is chairman and CEO of Related Companies, has gradually reduced his ownership stake since first investing in the Dolphins in 2008, when he bought 95 percent of the team for $1 billion and later spent more than $700 million on stadium renovations. In a recent deal, Ross sold a 13 percent share to private equity firm Ares and Brooklyn Nets owner Joe Tsai, which likely resulted in more than $150 million in capital gains taxes.
The structure of U.S. tax law allows Ross’s family to avoid capital gains tax if they wait until after his death to sell the team. However, this would trigger an estate tax estimated at more than $2.5 billion, payable within nine months of his passing.
Ross has secured several major events for the Miami Gardens stadium, including Formula 1 races, the Miami Open tennis tournament, and FIFA World Cup games scheduled for next year.
Attempts by other buyers have not been successful. Citadel founder Ken Griffin reportedly explored buying the team but did not reach a deal. An unnamed buyer also made a $10 billion offer for the franchise in recent years without success.
Three years ago, Ross named his daughter Jennifer as his successor with the Dolphins, suggesting an intention to keep ownership within the family. Previously, Related Companies president Bruce Beal was considered as a possible successor but was passed over after both he and Ross were sanctioned by the NFL for violating anti-tampering rules during efforts to recruit Tom Brady and Sean Payton.
