Mark Cuban’s agreement to sell his majority stake in the Mavericks to the Adelson and Dumont families has been approved by the league’s board of governors, tweets NBA writer Marc Stein. Sources tell Stein that the league’s 29 other owners all voted in favor of the move.
Sands Corp. Chief Operating Officer Patrick Dumont will take over as the team's governor with a 73% stake, according to Stein (link). Cuban will retain a 27% share in the team and becomes alternate governor. The Mavericks’ valuation in the deal is likely to fall between $4 billion and $5 billion with the Sands Corp.’s promise of a new arena being included, Stein adds.
The transaction is expected to close this week, the league announced in a formal statement (link). Sale documents still have to be signed, and money has to be paid to Cuban and the team’s five minority stakeholders who are being bought out in the deal, notes Brad Townsend of the Dallas Morning News.
A person familiar with the sale tells Townsend that the franchise is being valued between $3.8 billion and $3.9 billion without the arena considerations. He adds that it’s believed to be the largest pure cash transaction in the history of the league, as Miriam Adelson sold $2 billion in Sands stock to help finance the deal.
Cuban was expected to retain control of basketball operations when news that he was selling broke in late November, and those provisions are being included in the sale documents, another source tells Townsend. Cuban purchased the team for $285M in 2000.
With an estimated fortune of $33 billion, the Adelson and Dumont families will become the NBA’s second wealthiest owners, Townsend states, behind only the Clippers’ Steve Ballmer. Townsend adds that Cuban’s estimated worth of $6.2 billion, and his high profile around the league will continue to serve as assets for the franchise.
The league office streamlined the voting process as a show of support for the new owners, Townsend tweets. A source tells him that the league recommended approval of the sale, then it passed unanimously through a BOG executive committee before Wednesday’s vote was taken.
More must-reads: