DALLAS, TEXAS – DECEMBER 06: Dallas Mavericks owner Mark Cuban reacts after a basket during the … [+]
Mark Cuban’s sale of the Dallas Mavericks is official. On Wednesday, the NBA Board of Governors voted 29-0 to approve Cuban’s sale of the majority stake in the Mavericks to the families of Miriam Adelson and Sivan and Patrick Dumont, who own and operate the Las Vegas Sands
LVS
The sale of the Mavericks began a new era for the franchise after Cuban helmed the organization for 23 years. Cuban expressed his excitement about the deal Wednesday night, but what exactly is his role with the team now? Here are the pertinent details about the sale and what it means for Cuban and the organization.
Why Cuban sold the team
At one point, Cuban saw himself owning the team well into old age. The 65-year-old billionaire points to a shifting business and media landscape — local television deals becoming an impediment rather than an asset — as a reason for the sale. While he says he could have sold the team for more, the partnership with the new majority ownership group will grow the organization’s revenue base.
“Media companies are going out of business. Or they’re consolidating. That world is changing. And so what went from an advantage was not so much an advantage anymore,” Cuban told media members Wednesday.
“If you look at the teams that spend the most money right now, it’s not because of their media deals. It’s because of their real estate empires that they’ve built,” Cuban continued. “And I have no knowledge in that at all. It’s been hard enough learning the pharmacy and basketball business, let alone trying to learn real estate as well.”
Purchase price
Adelson and the Dumonts purchased the Mavericks at a valuation of more than $4 billion, ESPN reports. Forbes listed the value of the team at $4.5 billion in October 2023, making the Mavericks the seventh most valuable NBA franchise. Bloomberg reports that Adelson sold $2 billion worth of Las Vegas Sands Corp. stock before purchasing the Mavericks to help facilitate the sale.
Ownership stake
While Adelson and the Dumonts are the majority stakeholders, Cuban retains some team shares. He still has a 27% ownership stake in the team.
“I still own 27%,” Cuban said Wednesday. “And those of you who watch Shark Tank on Friday nights on ABC know that I say all the time that, for this particular case, 27% of a watermelon is a whole lot better than 27% of a grape. And so I think the value of the asset went up significantly.”
Governorship
Cuban is no longer the governor of the organization. That title now belongs to Patrick Dumont, Adelson’s son-in-law and president and chief operating officer of Las Vegas Sands. However, Cuban will serve as the Mavericks’ alternate governor.
Basketball operations
Even though he will no longer oversee the organization’s day-to-day operations, Cuban will maintain control of basketball operations for the Mavericks. However, Cuban acknowledges that there is no contractual language in the purchase agreement granting him authority over basketball operations.
“No, because you don’t do that in a sale agreement,” Cuban told reporters. “No, there’s no contractual [agreement]. Like when I came in and bought the Mavs, there were no changes in contracts.”
Cuban says he will still have the power to hire and fire coaches, sign free agents, and potentially spend into the luxury tax to acquire talent. However, if there was ever a disagreement, Dumont ultimately has the final say as the team’s governor.
“It’s like anything they’d have final say, for sure. He’s the governor,” Cuban said. “I’m sure we would work it out.”
New arena
Cuban has been talking about building a new arena for the Mavericks to play in for years. He said he envisioned any new arena as part of a Las Vegas-style casino and resort complex last year. With the team’s sale to owners and operators of Las Vegas Sands, that dream is closer to reality.
Months before Adelson and the Dumonts bought the majority stake in the Mavericks, Las Vegas Sands purchased land in Irving, Texas, a suburb of Dallas. It plans to build a resort across the highway from the former Texas Stadium site, where the Dallas Cowboys played from 1971-2008, NBC 5 reports.
News of the planned resort sparked rumors that the Mavericks could decamp from Dallas for Irving. However, Cuban said Wednesday that he believes any new arena will be built in the City of Dallas.
“Dallas proper,” he said.
Sarah Wilson is your guide to the latest trends, viral sensations, and internet phenomena. With a finger on the pulse of digital culture, she explores what’s trending across social media and pop culture, keeping readers in the know about the latest online sensations.
