Stephen Ross, the majority owner of the Miami Dolphins, has not shown any intention to sell the team, despite the franchise’s current struggles in the NFL standings. According to a report by the Miami Herald, significant capital gains taxes are a major factor in his decision to retain ownership.
Ross, who is also the chairman and CEO of Related Ross, has held the majority stake in the Dolphins since 2009. Over the years, he has reduced his ownership to 84.5 percent by selling portions of his stake. For example, last year he sold 13 percent of the team to private equity firm Ares and Brooklyn Nets owner Joe Tsai, a move that likely resulted in more than $150 million in capital gains taxes.
If Ross were to sell his entire share of the team and the Hard Rock Stadium property for a hypothetical $10 billion, he could face a capital gains tax bill exceeding $1 billion. The potential tax implications have reportedly played a role in previous unsuccessful attempts to sell stakes in the franchise.
Ross’s family could avoid capital gains taxes if they sold the team after his death, due to special IRS considerations. However, this could trigger an estate tax of over $2.5 billion, which would need to be paid within nine months.
Ross first invested in the Dolphins in 2008, acquiring 95 percent of the franchise for $1 billion and later investing more than $700 million in stadium renovations. He has also secured deals that brought events such as Formula 1, the Miami Open tennis tournament, and upcoming FIFA World Cup games to the Miami Gardens stadium.
Attempts by Citadel founder Ken Griffin to purchase the team from Ross were unsuccessful, as were other recent bids, including one from an unnamed buyer who offered $10 billion.
Ross appears committed to keeping the team 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 around the time both he and Ross were penalized by the NFL for violating anti-tampering policies during recruitment efforts for Tom Brady and Sean Payton.
