Stephen Ross, chairman and CEO of Related Companies, has not indicated any interest in selling the Miami Dolphins, despite the team’s poor performance this season. According to a report by the Miami Herald, significant capital gains taxes are a major factor discouraging a potential sale.
Ross has been the majority owner of the Dolphins since 2009. Over recent years, he has reduced his stake to 84.5 percent by selling portions of his ownership. If Ross were to sell his share in the team and Hard Rock Stadium for $10 billion, he could face more than $1 billion in capital gains taxes.
Last year, Ross sold 13 percent of the team to private equity firm Ares and Brooklyn Nets owner Joe Tsai. This transaction likely resulted in over $150 million in capital gains taxes.
There are tax implications for Ross’s family as well. If they were to sell the team after his death, they could avoid capital gains tax due to IRS rules but would instead face an estate tax that could exceed $2.5 billion, which would be due within nine months.
Ross first invested in the Dolphins in 2008, acquiring 95 percent of the franchise for $1 billion and investing more than $700 million into stadium renovations. He has also secured deals bringing Formula One racing, the Miami Open tennis tournament, and upcoming FIFA World Cup games to Hard Rock Stadium.
Attempts have been made by other wealthy individuals to buy the Dolphins. Citadel founder Ken Griffin reportedly tried to purchase the team from Ross without success. In addition, an unnamed buyer made a $10 billion bid for the franchise within the past two years that did not result in a sale.
Ross appears focused on keeping ownership within his family. Three years ago, he named his daughter Jennifer as his successor with the Dolphins.
Previously, Bruce Beal—president of Related Companies—was considered as a possible successor but was passed over around the time when both he and Ross faced NFL penalties for violating anti-tampering policies during attempts to recruit Tom Brady and Sean Payton.
