The NBA has approved Mark Cuban’s sale of the Dallas Mavericks.
The approval for the majority shares to be acquired by the Adelson and Dumont families, known for their involvement with the renowned Las Vegas Sands Corp., was announced Wednesday.
This development follows the public announcement a month ago by Miriam Adelson, Sivan and Patrick Dumont expressing their intention to purchase the team. According to a news story by the Associated Press, Cuban said:
“Patrick and Miriam, they’re the best in the world at what they do. Literally, around the world. When you get a world-class partner who can come in and grow your revenue base and you’re not dependent on things that you were in the past, that’s a huge win.”
In a statement, the Adelson and Dumont families expressed their intention to elevate the team to new heights through collaboration with Cuban.
“Through our commitment and additional investment in the team, we look forward to partnering with Mark Cuban to build on the team’s success and legacy in Dallas and beyond. The goal is to win and to have a team that proudly represents the greater DFW area and serves as a strong and valuable member of the local community.”
Mark Cuban maintains part ownership of Dallas Mavericks
The team’s valuation ranged around $3.5 billion, but in October 2023, Forbes assessed the value at $4.5 billion, positioning the Mavericks as the seventh most valuable NBA franchise. Despite Dunmont and Adelson being majority stakeholders, Cuban maintains part ownership of 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.”
Cuban’s reason for selling majority shares
Cuban cites that the uncertainty surrounding media rights deals raises concerns about the future, according to the Associated Press. Diamond Sports, the entity in possession of the regional sports network broadcasting the Mavericks, is currently undergoing bankruptcy proceedings.
Hence, the changes in the business and media landscape highlight how local television deals have transitioned from being an asset to becoming a hindrance and are the primary motivation behind the team’s sale.
Although he acknowledges the potential for a higher selling price, he emphasizes that partnering with the new majority ownership group will ultimately contribute to the organization’s revenue growth. Cuban told media members Wednesday:
“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.”
“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.”
Cuban supports legalizing gaming in Texas and partnering with Las Vegas Sands could help Cuban and the team if Dallas becomes a casino resort destination.
“Honestly, I don’t care so much about sports betting,” Cuban said. “If you look at destination resorts and casinos, the casino part of it is tiny, relative to the whole bigger destination aspect of it. Could you imagine building the Venetian in Dallas, Texas? That would just change everything.”
About the Mavericks’ new leadership
Under the Mavericks’ new leadership, Patrick Dumont, the son-in-law of Adelson and president and chief operating officer of the Las Vegas Sands, will assume the role of team governor previously held by Cuban, who will now serve as an alternate governor.
Cuban will retain control over basketball operations. This includes responsibilities such as hiring and firing coaches, signing free agents, and occasionally using the luxury tax to acquire talent.
However, in the event of disagreements, the final decision rests with Dumont, the appointed 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.”
When asked about whether assuming control of the team’s operations was included in the terms of the sale agreement, he responded:
“No, because you don’t do that in a sale agreement. No, there’s no contractual [agreement]. Like when I came in and bought the Mavs, there were no changes in contracts.”
This arrangement proves advantageous for the team, considering the Mavericks struggled as a franchise until Cuban took over ownership in 2000.