Photo Credit: https://www.directv.com/insider/highest-paid-nfl-players/
What’s the easiest way to make $1 billion in a year? Own an NFL franchise! Okay, maybe it’s not that simple. But that is exactly what happened for Buffalo Bills owner Terry Pegula over this past year.[1] Hi net worth has increased by a total of ~$3 billion since purchasing the Buffalo Sabres in 2011 and the Buffalo Bills in 2014.[2] And there are many other owners that have seen their net worth grow in staggering numbers as well.[3] To be fair, not all of the owners’ wealth is tied to the increase in value of their franchises, either. Many of the owners (actually all of them) had significant wealth before owning their franchises, such as the Walton family, heirs to the Wal-Mart fortune who own the Denver Broncos, and David Tepper, a hedge fund manager who owns the Carolina Panthers.[4] In fact, the Carolina Panthers, valued at $5.9 billion, make up only about 25% of David Tepper’s overall wealth.[5] In contrast, the Buffalo Bills, valued at $5.35 billion make up roughly 67% of Terry Pegula’s wealth.[6] I know not many of us are going to feel bad for Mr. Pegula, but it does beg the question, why are we (the taxpayers) on the hook to pay for a large part of the construction of a new stadium? A lot of it has to do with market size and the amount of the owner’s money that is tied up in the team.
For example, SoFi stadium was completed in Los Angeles in 2020 and financed with 100% private money.[7] A lot of it has to do with Stan Kroenke, who relocated the Rams from St. Louis to Los Angeles in 2016, has a real estate development background, and so he has the connections to get large corporate sponsors, in addition to his $18 billion net worth.[8] Oh, and because it’s Los Angeles, the second largest media market in the nation. So, it is natural that corporate money will come flowing in.
Contrast that with Buffalo, where Terry Pegula made his money in oil fracking, ultimately selling his company to Royal Dutch Shell for $4.7 billion, and was a relative unknown prior to his acquisition of the Bills.[9] While still super wealthy, Mr. Pegula does not have the advantages of being in a large market where a Fortune 500 company would give the team a blank check to have their name on the stadium. Furthermore, Pegula’s wealth is tied up in illiquid assets that cannot be easily converted into cash to finance the construction of a new stadium. Even today, the Bills are the third-lowest valued NFL franchise due in large part to our small media market and lower ticket prices.[10] This, combined with precedent that has been set by public policy makers, allows team owners to access public capital through tax-exempt bonds issued by state and local governments when they cannot privately raise the money.[11] While this may be frustrating for some, it is a way of doing business that has gone on for decades and will continue to help increase the value of all NFL owners so long as the league continues to control our Sundays.
[1] https://buffalonews.com/news/local/business/article_37034134-1448-431d-8720-94d57f181df5.html#:~:text=Buffalo%20Bills%20owner%20Terry%20Pegula,made%20Forbes’%20list%20of%20billionaires.&text=Pegula%2C%2074%2C%20originally%20made%20a,billionaires%20from%20around%20the%20world.
[2] https://www.wkbw.com/news/local-news/terry-pegula-owner-of-the-buffalo-bills-and-sabres-is-now-worth-7-6-billion#:~:text=Terry%20Pegula%2C%20owner%20of%20the,is%20now%20worth%20%247.6%20billion&text=Terry%20Pegula’s%20net%20worth%20has,Bills%20in%202011%20and%202014.&text=BUFFALO%2C%20N.Y.
[3] https://www.forbes.com/sites/justinbirnbaum/2025/04/01/the-worlds-richest-sports-team-owners-2025/
[4] Id.
[5] https://www.cnbc.com/2024/09/05/official-nfl-team-valuations-2024.html
[6] Id.
[7] https://www.latimes.com/sports/story/2020-09-04/stan-kroenke-nfl-owners-coronavirus-workers-sofi-stadium-rams-chargers
[8] https://www.espn.com/nfl/story/_/id/14558668/st-louis-rams-relocate-los-angeles
[9] https://buffalonews.com/sports/bills/article_bd84e70d-0964-5434-ba84-03ce13f7c844.html
[10] See supra note 4.
[11] https://buffalonews.com/sports/bills/article_bd84e70d-0964-5434-ba84-03ce13f7c844.html