Tom Dundon Purchases Portland Trail Blazers For $4+ Billion

Well, well, well. Look who’s making it rain in the Pacific Northwest. Carolina Hurricanes owner Tom Dundon has reportedly struck a deal to purchase the Portland Trail Blazers for a cool $4+ billion. The news broke on Wednesday when Sportico’s Eben Novy-Williams dropped the bombshell, with ESPN’s Shams Charania confirming the eye-watering price tag. And before you start panicking about another potential relocation saga, take a deep breath. Dundon plans to keep the team in Portland.

Dundon’s Track Record Speaks Volumes

Let’s talk about what Dundon brings to the table, because his resume is not exactly littered with participation trophies. Since becoming the Hurricanes‘ majority owner in 2018, the 53-year-old has transformed that franchise into a legitimate contender. Seven straight playoff appearances with three conference finals runs? That’s not luck, folks. That is competent ownership.

The man made his fortune in financial services and private investments, so he clearly knows how to handle money better than whoever’s been making decisions for the Blazers lately. He is also apparently obsessed with pickleball (owns Pickleball Central and helped launch pickleball.com), which might be the most random billionaire hobby since Mark Cuban’s love of basketball analytics.

But here’s the kicker. Dundon isn’t flying solo on this purchase. His ownership group includes Marc Zahr from Blue Owl Capital and Portland-based Sheel Tyle, co-CEO of Collective Global. Having local representation might matter when it comes to understanding what this city needs from its basketball team.

The End of An Era Under Paul Allen’s Estate

Paul Allen’s death in 2018 marked the end of an era for Portland basketball. The Microsoft co-founder purchased the Blazers for $70 million in 1988. A number that looks microscopic compared to today’s $4+ billion valuation. His will specifically called for the team to be sold “at some point,” and after seven years of his sister Jody Allen running things as executor, that point has finally arrived.

The Trail Blazers officially went on the market in May, with all proceeds designated for philanthropic endeavors. It is worth noting that the estate is keeping the Seattle Seahawks and their 25% stake in the Seattle Sounders.

What Portland Desperately Needs

Let’s be brutally honest here. The Blazers have been a hot mess for years. Four straight seasons missing the playoffs, a 36-46 record last season, and a general sense that the franchise has been treading water while other teams try to win championships. Forbes valued the team at $3.5 billion in October, so Dundon’s paying a premium, which hopefully means he’s serious about results.

The timing couldn’t be better. The NBA just signed those massive 11-year media deals worth $77 billion combined with ESPN, NBC, and Amazon. Translation: there’s about to be a lot more money flowing through the league, and having an owner who knows how to capitalize on financial opportunities seems pretty important.

Arena Situation Gets Interesting

Here’s where things get really interesting. The Blazers sold the Moda Center to Portland for basically nothing last year ($1 for the arena, $7 million for the land), then entered into a public-private partnership for renovations with a lease through 2030. Dundon’s group is reportedly planning to discuss their public-private partnership for arena improvements with city and state officials.

This could either be fantastic news or a complete disaster, depending on how those negotiations go. But given Dundon’s business background and the inclusion of local ownership partners, there’s reason for cautious optimism.

The Bottom Line

After years of drift under estate management, Portland finally has an owner who’s proven he can build winning teams. Dundon transformed the Hurricanes from NHL also-rans into perennial contenders, and there’s no reason to think he can’t do the same in Portland.

The $4+ billion price tag might seem insane, but in today’s NBA landscape, that is just the cost of admission to the billionaire boys’ club. At least Portland’s getting someone who’s been there before.