Pegula Sports and Entertainment
| Company type | Private |
|---|---|
| Industry | Sports, entertainment, real estate, media |
| Founded | 2011 |
| Founder | Terry Pegula |
| Defunct | August 28, 2023 |
| Fate | Ceased operations; assets operate independently |
| Headquarters | Buffalo , United States |
Key people | Kim Pegula (President and CEO) |
| Products | Sports teams, real estate developments, media outlets, entertainment ventures |
| Owner | Terry Pegula |
| Website | www |
Pegula Sports & Entertainment (PSE) was a sports and entertainment enterprise headquartered in Buffalo, New York, established by billionaire Terry Pegula to unify his investments in sports franchises, real estate, and entertainment ventures. Its assets encompassed the Buffalo Bills (NFL), Buffalo Sabres (NHL), Buffalo Bandits and Rochester Knighthawks (NLL), as well as the Rochester Americans (AHL). Leadership was under Terry’s spouse, Kim Pegula, who held the positions of president and CEO.
On August 28, 2023, PSE ceased operations, resulting in the Bills and Sabres functioning independently while remaining under Terry Pegula’s ownership and leadership. After Kim Pegula became incapacitated, a series of transactions in 2024 shifted her ownership stake in the Bills into an estate managed by Terry Pegula and Bob Long. Additionally, a minority interest was acquired by Terry’s daughter Laura Pegula. Further shares were sold to private equity firm Arctos and professional athletes Vince Carter, Tracy McGrady, and Jozy Altidore. Terry Pegula continues to possess full ownership of his other sports properties.
Sports teams
Following the sale of his East Resources natural gas enterprise in 2011, Pegula purchased the Buffalo Sabres and Buffalo Bandits by acquiring Hockey Western New York, LLC for $189 million. Shortly thereafter, on May 17, 2011, he acquired the Rochester Americans of the American Hockey League for $5 million, reestablishing their affiliation with the Sabres.
In 2014, Terry and Kim Pegula completed an all-cash acquisition of the Buffalo Bills for $1.4 billion, setting a record as the highest price paid for an NFL franchise at that time. The team was available following the passing of its original owner Ralph Wilson.
Pegula Sports & Entertainment ventured into women’s hockey by purchasing the Buffalo Beauts of the National Women's Hockey League in December 2017. This represented the league’s first external ownership amid an otherwise centrally controlled structure. The Beauts returned to league management in 2019; however, Kim Pegula reaffirmed the company’s commitment to fostering growth in women’s hockey.
In 2018, PSE reached an agreement to acquire the intellectual property rights of the Rochester Knighthawks from the National Lacrosse League, with the transaction taking effect in fall 2019. This purchase complemented ownership of the Bandits and allowed Kim Pegula to assume a more prominent operational role with the Knighthawks. Meanwhile, the original owner relocated staff and players to establish a new franchise in Halifax.
Media
Pegula Sports & Entertainment managed Black River Entertainment, an independent country music label representing artists such as Kelsea Ballerini and Craig Morgan. The company also operated Black River Publishing and Sound Stage Studio located in Nashville, Tennessee.
The organization controlled MSG Western New York, also known as Pegula Sports Network, a Western New York subchannel of MSG that broadcasts Buffalo Sabres and Bills games alongside local sports programming, select Rochester Americans contests, high school football coverage, and special events. This channel replaced MSG’s primary feed on regional cable providers in 2016.
Additionally, PSE owned PicSix Creative, its internal marketing, design, production, and communications agency that also provides services to external clients.
Real estate
Pegula Sports and Entertainment owned and operated LECOM Harborcenter, a $250 million hockey-centric development featuring two ice rinks, a substantial parking structure, retail outlets, dining options including a Sabres-themed Tim Hortons, and a Marriott hotel. The venue opened in stages from November 2014 through August 2015. In 2019, the company secured a decade-long naming rights agreement with Lake Erie College of Osteopathic Medicine (LECOM).
Adjacent to Harborcenter, PSE managed the KeyBank Center arena, where they implemented enhancements such as increasing seating by 380 to reach a total capacity of 19,070—commemorating the Sabres’ founding year—and upgrading all 80 luxury suites with state-of-the-art features. In 2016, the installation of an LED lighting system enhanced both energy efficiency and spectator experience.
After acquiring the Buffalo Bills, PSE took over operations of the team’s Orchard Park stadium. Departing from previous practices, Pegula sold naming rights initially to New Era Cap Company (renaming it New Era Field), followed by Highmark Blue Cross Blue Shield (renamed Highmark Stadium). Additionally, Pegula reintroduced stadium rock concerts after a ten-year break.
On March 28, 2022, PSE finalized a $1.4 billion deal with New York State and Erie County to construct a new Bills stadium in Orchard Park with 62,000 seats. The financing includes $600 million from New York State, $250 million from Erie County, $350 million contributed by the Pegulas, and $200 million obtained through an NFL G-4 loan. The Pegulas secured a 30-year lease agreement while ownership will be transferred to New York State.
In collaboration with Labatt USA, PSE redeveloped 79 Perry Street in Buffalo’s Cobblestone District into a mixed-use complex housing Labatt’s U.S. headquarters, a test brewery named "Labatt House," the restaurant "The Draft Room," along with retail, commercial, and residential spaces. Labatt USA and PSE relocated to this facility in late 2018; Bakery 55—a Pegula-owned bakery—opened there in December 2018.
In June 2017, the Pegulas purchased a downtown Buffalo property at 118 Michigan Avenue near Seneca Buffalo Creek Casino.
By July 2018, PSE assumed control of Rochester’s Blue Cross Arena from SMG. Subsequently, PSE faced criticism for allegedly monopolizing arena usage for its own teams by increasing rental fees to discourage other events.
Moreover, PSE owns Deer Valley Trails located in St. Regis Falls, New York, and Terra Mare restaurant in Fort Lauderdale, Florida. The company also maintains a marketing partnership with Sear Buffalo steakhouse co-owned by Bills alumni Fred Jackson, Terrence McGee, and Brian Moorman.
Brands
Under the Pegula portfolio are IMPACT Performance Cycle & Yoga, two elite athletic training centers situated in Boca Raton, Florida and LECOM Harborcenter in Buffalo. On August 21, 2017, the Pegulas acquired ADPRO Sports retail merchandising business from former majority owner Ron Raccuia. Additionally, PSE operates Healthy Scratch, a dining establishment at HarborCenter owned by Kelly and Jessica Pegula, the latter being an internationally ranked professional tennis player.
The company managed the One Buffalo brand developed by Kim Pegula following the 2014 acquisition of the Buffalo Bills. In partnership with Southern Tier Brewing Company, PSE introduced "One Buffalo" craft beer available at Pegula venues and regionally. This brand extended to include a Perry’s Ice Cream flavor and premium cupcakes, both created under Kim Pegula’s direction.
Previously, PSE owned 716 Food and Sport, a two-level sports-themed restaurant at Harborcenter that was sold to Southern Tier Brewing Company in 2021.
Personnel
Following the acquisition of the Bills, Russ Brandon held the position of President until May 2018. After his exit, a number of top executives either resigned or were terminated: Michael Gilbert and Nik Fattey departed in December 2018, while Bruce Popko (COO), Brent Rossi (CAO), and Erica Muehlman (SVP) left in February 2019. Kim Pegula confirmed that these positions would not be filled immediately.
In April 2020, amid the COVID-19 pandemic in New York (state), The Athletic highlighted layoffs at PSE as part of cost-cutting efforts, alongside reports of diminished morale and a reportedly "toxic culture" within both the Sabres organization and PSE as a whole.