Mark Cuban's Majority Sale of Mavericks Receives Final Approval
On Wednesday, the NBA’s Board of Governors approved the sale of the Dallas Mavericks from Mark Cuban to the families of Dr. Miriam Adelson and Sivan and Patrick Dumont, the league said in a statement. Mr. Dumont, President and Chief Operating Officer of Las Vegas Sands Corp., will serve as the Mavericks’ Governor. The transaction is expected to close this week.
What it means: For the first time in 23 years, Cuban will not be the majority owner of the Mavericks. In a unique arrangement, Cuban will retain a 27% stake in the team and will continue to oversee basketball operations. While Dumont will supplant Cuban on the Board of Governors and ultimately have final say over basketball decisions, Cuban told reporters in Dallas on Wednesday that he will continue to run the day-to-day.
“We are honored to be the new majority owners of the Dallas Mavericks and part of the NBA family,” Dumont said in a statement. “We appreciate the faith the NBA and its Board of Governors have placed in us. Our family loves basketball, and we plan to display our passion for the sport by owning and investing in a world-class basketball organization that wins games and proudly represents its community.”
Added Cuban, “It’s a partnership. They’re not basketball people. I’m not real estate people. That’s why I did it. I could have got more money selling to somebody else. This is a great partnership. I’ve known these guys for a long time. They’re great at the things I’m not good at.”
Why Cuban is selling: Cuban, who bought the Mavericks at $285 million, sells his majority stake in the team at a valuation roughly $3.5 billion, sources familiar with the sale confirmed to Sports Illustrated. Rarely do outgoing owners retain control of operations, but with the Adelson family’s interests extending beyond basketball—Adelson is the largest shareholder in Las Vegas Sands and there is reportedly interest in bringing a resort to the Dallas area, one that could include a casino should Texas legalize them in the future—Cuban is able to maintain his, something he told reporters was important for him in this transaction.
“It’s what I love to do,” Cuban said. “I’m also a realist and I’m also self aware. I know what I’m good at. When I first bought the team I knew about the technology and the internet and all the streaming. I had a real advantage there. Now, 24 years later, that’s not the advantage anymore. The advantage is what can you build and where. You need to have somebody who is really, really good at that. Patrick and Miriam, they are the best in the world at what they do. Literally. When you get a world class partner who can come in and grow your revenue base so you’re not dependent on the things that you were in the past, that’s a huge win.”
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Will anything change? Cuban says no, joking with reporters that NBA commissioner Adam Silver told him he could still fine him for his behavior. He reiterated that the sale will add “another base of revenue” that will put the team in a much better position to compete. Nico Harrison will continue to run basketball operations and Jason Kidd will continue on as head coach. At 18–12, Dallas entered Wednesday’s game against Cleveland in fifth place in the Western Conference.
More Cuban: Asked about recent comments where he expressed a desire to own the Mavericks for the foreseeable future, Cuban told reporters “things change.”
“Media companies are going out of business,” Cuban said. “They are consolidating. That world is changing. What went from an advantage was not so much an advantage anymore. Two or three years ago, I was talking about a casino and a destination resort and I told you guys then I wasn’t going to be the one to build it. It makes sense if someone is going to come in and invest billions of dollars, they are going to want equity.”