The NBA has recently sanctioned Mark Cuban’s decision to sell the majority shares of the Dallas Mavericks. The acquisition by the Adelson and Dumont families, notable for their ties with the distinguished Las Vegas Sands Corp., received official approval this Wednesday.
This announcement comes on the heels of Miriam Adelson, Sivan, and Patrick Dumont’s declaration last month about their plans to acquire the team. The Associated Press reported Cuban’s commendation of the new partners:
“With Patrick and Miriam’s unparalleled global excellence, we’re stepping into a new era. Their global perspective will not only grow our revenue but also liberate us from past dependencies, marking a significant triumph.”
The Adelson and Dumont families have voiced their determination to propel the Mavericks forward, intending to collaborate closely with Cuban in this venture.
“Our vision is to not only win but also to foster a team that resonates with the DFW area. We’re excited to work alongside Mark Cuban to enhance the team’s presence and ensure it remains a vital part of the local community,” they stated.
Mark Cuban Retains Partial Ownership of Dallas Mavericks
Despite the majority ownership change, Cuban remains a significant stakeholder. The Mavericks, valued at around $3.5 billion and recently estimated by Forbes at $4.5 billion, are the NBA’s seventh most valuable franchise. Cuban still holds a 27% share.
“Owning 27% of this franchise is incredibly lucrative. As I often mention on Shark Tank, 27% of a substantially valued entity like the Mavericks far outweighs the same percentage of a smaller venture,” Cuban commented.
Cuban’s Motivation Behind Selling Majority Shares
Cuban points to the evolving media rights landscape as a key factor in his decision, as reported by the Associated Press. Diamond Sports, holding the regional sports network rights for the Mavericks, faces bankruptcy, signaling a shift in the value of local TV deals from assets to liabilities.
Cuban, acknowledging the possibility of a higher sale price in the future, stressed the strategic importance of the new ownership in driving the Mavericks’ revenue growth.
“With media companies consolidating or failing, our previous media advantages diminished. The highest spending teams now rely on their real estate holdings, a field I’m unfamiliar with. It’s been challenging enough mastering the pharmacy and basketball industries,” Cuban explained.
He also noted the potential benefits of legalizing gaming in Texas, particularly with the partnership with Las Vegas Sands, envisioning transformative developments like a Venetian-style resort in Dallas.
“For me, it’s less about sports betting and more about the grandeur of destination resorts. They offer much more than just casinos, and imagining such a development in Dallas is truly exciting,” Cuban said.
The New Leadership and Structure of the Mavericks
Under the Mavericks’ new ownership, Patrick Dumont, Adelson’s son-in-law and COO of Las Vegas Sands, will replace Cuban as the team governor. Cuban will now serve as an alternate governor but will continue overseeing basketball operations.
Cuban’s responsibilities include crucial decisions like hiring coaches and managing player contracts. However, Dumont, as the appointed governor, will have the final say in disputes.
“In any situation, the final decision rests with the governor, but we’re confident in reaching mutual agreements,” Cuban stated.
Addressing questions about operational control in the sale terms, he clarified:
“Operational control isn’t stipulated in a sale agreement. When I purchased the Mavericks, there were no contractual obligations regarding management changes.”
This ownership structure is seen as beneficial, especially considering the significant improvements the Mavericks have witnessed since Cuban’s takeover in 2000.
Mark Cuban’s sale of the majority shares of the Dallas Mavericks to the Adelson and Dumont families marks a strategic shift in the franchise’s ownership while maintaining his influential role. This move, driven by the changing landscape of media rights and potential new ventures in gaming and real estate, sets the stage for future growth and continued success of the Mavericks under the new shared leadership.