NBA Approves Dallas Mavericks Sale, Team to Remain in Texas, Says Cuban

Posted on: December 28, 2023, 11:10h. 

Last updated on: December 28, 2023, 11:27h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

On Wednesday, the NBA Board of Governors confirmed the sale of a controlling interest in the Dallas Mavericks to the families of Dr. Miriam Adelson and Sivan and Patrick Dumont.

Miriam Adelson
Miriam Adelson, with her late husband, Sheldon, seated to the right. The NBA approved the sale of a controlling interest in the Dallas Mavericks to her and the Dumont family. (Image: Getty Images)

Adelson is the widow of Las Vegas Sands (NYSE: LVS) founder Sheldon Adelson, while Dumont, her son-in-law from a previous marriage, is chief financial officer of the gaming company. He will serve as governor of the franchise, while Mark Cuban will retain a 27% interest in the team and remain as head of basketball operations.

Through our commitment and additional investment in the team, we look forward to partnering with Mark Cuban to build on the team’s success and legacy in Dallas and beyond,” the Adelson and Dumont families said in a statement. “The goal is to win and to have a team that proudly represents the greater DFW area and serves as a strong and valuable member of the local community.”

Adelson sold $2 billion worth of Sands stock in November to fund the purchase of 73% of the NBA franchise. That was roughly equivalent to 10% of her stake in the casino giant, and she remains the largest individual investor in the operator. LVS pledged to repurchase up to $250 million of her sold shares.

Mavs Purchase Stoked Slew of Rumors

The initial headlines of the Adelson and Dumont families taking control of the Mavericks spurred an array of speculation, including the possibility of the Mavericks moving to Las Vegas — a city that’s widely believed in the pole position for an NBA franchise if the league expands.

Cuban quashed that rumor, confirming the team will remain in Dallas. There is other, somewhat overlooked scuttlebutt that Sands could be in talks with an investment company about partnering on a new Las Vegas Strip integrated resort and an effort to bring an NBA team to Sin City. But that hasn’t been confirmed as of yet. Should that plan come to fruition, it’s possible the league would compel Dumont to leave the gaming company to avoid conflicts of interest.

The more believable hearsay is that Sands and Cuban are angling to bring a casino hotel to the Dallas area. Assuming such a venue is approved, it’d be part of a broader entertainment complex that would include a new arena for the Mavs.

In July, a limited liability company (LLC) with ties to Sands acquired 108 acres of land near Texas Stadium in Irving, Texas. That could eventually be the site of a Sands-operated gaming venue. That would require the Texas legislature amending the state constitution so voters can have a say on casino gaming. But that won’t happen prior to 2025.

More Comments from Cuban

Cuban told the Associated Press he doesn’t care too much about sports betting being legalized in Texas. But he views the idea of a Venetian-esque casino hotel in Dallas as a potential game-changer in terms of luring more tourists to the region.

He added that he could have fetched a bigger price for the Mavericks. But his lengthy relationship with the Adelsons and their real estate expertise made them attractive partners.

As for making the team a legitimate championship contender, Cuban told the AP that Dumont gave him near carte blanche to do what it takes to build a winner.