By Shams Charania, Mike Vorkunov and Tim Cato
Dallas Mavericks owner Mark Cuban is selling a majority stake in the franchise to Miriam Adelson and her family in a deal valued at about $3.5 billion, league sources said. However, Cuban retains shares in the team and full control of basketball operations. NBA reporter Marc Stein was first to report the news of the sale.
According to league sources, Adelson’s skills in real estate development with the prospect of developing an arena and introducing casino gaming and entertainment to Dallas were attractive factors in selling Cuban.
Adelson, Las Vegas Sands’ largest shareholder, announced Tuesday that she would sell $2 billion worth of shares in the company. That’s about 10 percent of their share.
“The selling shareholders have advised us that they currently intend to use the net proceeds from this offering, together with additional cash, to fund the purchase of a controlling interest in a professional sports franchise pursuant to a binding purchase agreement in accordance with customary league approvals,” Las said Vegas Sands in SEC filing.
According to Forbes, Miriam, born in Israel, and Sheldon, born in Boston, donated $180 million to Republican campaigns and political action committees in 2020. The Adelson family owns the Israeli daily Israel Hayom and the Las Vegas Review Journal, which they purchased in 2015.
Cuban purchased the Mavericks in January 2000 for $285 million.
Why Cuban made the move
This transaction is as interesting as it is surprising. At a time when the NBA and every other sports league is betting on sports, the Mavericks are being purchased by the family of one of the country’s biggest casino tycoons, Sheldon Adelson, who died in 2021. Miriam Adelson and the Miriam Adelson Trust leads a group that owns 57 percent of Las Vegas Sand Corp. which owns and operates casinos around the world. If approved, Adelson would become only the second woman to currently be the principal owner of an NBA team, joining Jeanie Buss of the Los Angeles Lakers.
This is the second basketball team the Adelson family has purchased this year. Matan Adelson, Miriam’s son, bought Hapoel Jerusalem, an Israeli club that also plays in the EuroCup, this summer.
This transaction also ends a seemingly endless valuation climb for NBA teams. The value of teams seemed to continue to rise over the last decade. But after the Hornets were sold for $3 billion earlier this year, a 25 percent stake in the Bucks was sold for a valuation of $3.5 billion, and Mat Ishbia was sold a majority stake in the Suns for a valuation of $4 billion, the Mavericks couldn’t beat that number. This is somewhat surprising since Dallas-Fort Worth is the fifth-largest media market in the country and Dallas is the ninth-largest city by population. Not to mention, they’ve had success recently and have one of the NBA’s biggest stars in Luka Doncic.
It’s also a victory for Cuban, who can continue to play basketball despite selling most of his shares. — Mike Vorkunov, national basketball business reporter
Cuban has already ceded some front office influence to Nico Harrison
Since purchasing the team in 2000, Cuban’s identity has been so closely tied to the Dallas Mavericks that his decision to sell is shocking. But because of that, he gained something unprecedented: continued control of basketball operations, something Cuban has long been known for.
Since Nico Harrison was hired as general manager in 2021, Cuban has been a less influential figure in front office matters: He is still actively involved and aware of what is happening, but leaves much of those decisions to Harrison, who has a much stricter structure The team is stronger than in the past under former general manager Donnie Nelson.
We may only know over time what exactly Cuba’s unique arrangement means on a functional level. Maybe there’s something else that Cuban’s decision to sell leads to, but there’s no question that the Mavericks are now heading into an uncertain future. — Tim Cato, Mavericks writer
Required reading
(Photo: Michael Reaves/Getty Images)