The NBA Board of Governors on Wednesday unanimously voted to sell controlling interest in the Dallas Mavericks to two families that run the Las Vegas Sands Corporation.
As expected, Mark Cuban's sale to the Adelson and Dumont families faced little to no opposition from 29 members of the NBA Board of Governors and easily achieved the three-quarters majority of votes required for approval.
A person familiar with the terms of the sale told The Dallas Morning News that the sale price is between $3.8 billion and $3.9 billion at a franchise valuation, with the Adelson and Dumont families acquiring 73% and Cuban 23%, as well as the The team retains operational control over this.
It is a groundbreaking deal as it is believed to be the largest cash transaction in NBA history without servicing debt. Miriam Adelson, the 78-year-old widow of casino magnate Sheldon Adelson, financed the purchase by selling shares of Sands Corp. valued at $2 billion and the use of additional cash.
Although the vote on Wednesday makes the sale all but official, it will be formalized in the next few days once the sale documents are signed and the money is distributed to Cuban and the four minority shareholders of the Mavericks who are being bought out. The exception is Mary Stanton, who has decided to keep her 4 percent stake in the franchise for the time being.
Miriam Adelson's 49-year-old son-in-law, Sands Corp. President and COO Patrick Dumont, will be the Mavericks' executive governor, with Cuban, 65, serving as deputy.
Cuban's ongoing operational role is written into the sale documents, a person familiar with the sale parameters said, and the NBA and Board of Governors have signed off on the terms.
Although this arrangement is unique, other NBA owners with similar percentages operate their respective teams, most notably Joe Lacob, who owns 25% of the Golden State Warriors.
The rather sudden and dramatic Adelson-Dumont-Cuban merger makes the Mavericks one of the most dynamic and financially strong franchises in professional sports.
According to Forbes estimates, the Adelson-Dumont families are worth $33 billion. They are the third-richest owners in American professional sports behind Steve Ballmer of the Clippers ($101 billion) and the Walton family of the Denver Broncos ($67.4 billion).
And that's before taking into account Cuba's estimated $6.2 billion worth and pop culture visibility.
What does Adelson-Dumont bring other than pure wealth? Sands Corporation's background and expertise extend far beyond gaming. The company has a long history and extensive infrastructure in real estate development and the entertainment industry.
“To compete in the NBA, it's just as important as what happens on the court,” Cuban said Tuesday during the annual Normathon on Sportsradio 96.7 FM/1310 The Ticket (KTCK-AM). “To be financially competitive, you have to be able to place the organization where it can generate the most revenue and revenue.
“And for the first almost 23 years, media and technology was an advantage that I had. . . And real estate is not my thing. It's not something you want to learn on the fly when you have hundreds of millions or billions of dollars to invest. That’s why I wanted a partner who had that strength.”
Since news of the Mavericks sale broke on Nov. 29, much of the media and public focus has been on Sands Corp.-Cuban's hopes of legalizing gambling in Texas and eventually an arena-casino resort project build.
Although Texas is still years away from legalizing casino gambling, Adelson-Dumont has the financial wherewithal to wait as long as necessary and will likely move forward with a large enough project as soon as possible Integrate Casino. In July, a company with Sands Corp. affiliated company 108 acres across from the former Texas Stadium site in Irving.
“Over time, gaming will come to Texas in all versions. “Casinos will be the last version,” said Republican political consultant Bill Miller. “You have to be patient and have money. You have to be financially able to stay in the game.”
Also notable is the fact that the Mavericks merger has been in the works for at least 13 months, according to two people familiar with sales negotiations. Cuban told The News last December: “My goal and our goal with Las Vegas Sands is that we build a new arena in the middle of a resort and casino. That’s the mission.”
In retrospect, Cuban declared his intentions with the confidence that they would become reality. Dumont traveled frequently from Las Vegas to attend Mavericks games at the American Airlines Center during the 2022-23 season, although he was not spotted this season, perhaps to avoid speculation as the trade deal approached.
Big milestone for the Mavericks
In the 44-year history of the Mavericks franchise, Wednesday's Board of Governors vote is certainly an important milestone.
The franchise was founded on May 1, 1980 for an NBA expansion fee of $12 million plus startup costs. The then 46-year-old majority owner Donald Carter originally invested $13.3 million.
Exactly 16 years later, on May 1, 1996, Carter sold his controlling interest to Ross Perot Jr., then 41, at a franchise valuation of $125 million.
Cuban was 42 years old when he announced on January 4, 2000 that he would purchase the franchise in a deal valued at $285 million.
Cuban immediately assumed operational control, although the formal press conference with Cuban and Perot did not occur until January 20 and approval from the NBA Board of Governors did not occur until April.
While Cuban will now remain the face of the franchise off the field in many ways, the sale to Adelson-Dumont is a passing of the torch in the sense that he is no longer the majority owner.
Cuban's nearly 23-year tenure as majority owner and governor is the longest in franchise history and by far the most successful.
During Carter's tenure, the Mavericks' regular-season record was 541-771, with six playoff appearances – but none in the last six seasons.
Perot owned the franchise for about three and a half seasons, with a 72-172 regular season record and no playoff appearances.
Cuban took over a franchise that was 9-21 at this point in the 1999-2000 season – with an average home attendance of 14,200 – and had endured the worst decade of any major professional sports team: a 240-550 record and three playoff appearances. all in 1990, all defeats.
The Cuban-era Mavericks are 1,152-782, with 18 playoff berths, a trip to the 2006 NBA Finals and the franchise's only NBA title five years later.
Now a new era begins, full of secrets, intrigue and possibilities.
The Associated Press contributed to this report.
Find more Mavericks coverage from The Dallas Morning News here.