Mark Cuban, owner of the Dallas Mavericks, is currently negotiating a deal to sell a majority stake in the NBA franchise to the family behind the Las Vegas Sands Corp., according to an undisclosed source. The potential agreement is estimated to be valued at $3.5 billion and is expected to undergo a weeks-long processing period within the league. The source, who spoke on the condition of anonymity to The Associated Press, revealed that Cuban would maintain control over the basketball operations in this transaction. NBA reporter Marc Stein initially reported on the potential sale.
Earlier on Tuesday, the company controlled by Miriam Adelson, the widow of casino magnate Sheldon Adelson, disclosed its intention to sell $2 billion of her shares for the acquisition of an unspecified professional sports team.
Cuban expressed interest in partnering with Sands almost a year ago and has been an advocate for the legalization of gambling in Texas, a cause that faced challenges in the state Legislature’s biennial session earlier this year.
At 65 years old, Cuban, who recently announced his departure from the business TV program “Shark Tank” after the upcoming 16th season, gained prominence rapidly after acquiring the Mavericks in 2000. Under his ownership, Dallas transformed from one of the worst franchises in the 1990s to one of the best, with significant contributions from star forward Dirk Nowitzki.
Miriam Adelson, the controlling shareholder of Las Vegas Sands Corp., a publicly traded company known for building the Venetian and Palazzo resorts, plans to sell $2 billion in stock. The filing with the Securities and Exchange Commission did not specify the team, league, or location involved in the purchase.
If the entire $2 billion is allocated for the acquisition, it could represent at least a 57% ownership stake in the NBA team based on the $3.5 billion valuation. Following the sale, the 78-year-old Adelson, a medical doctor, will retain 51.3% of company shares, according to the filing. The Adelson family also owns the Las Vegas Review-Journal, Nevada’s largest newspaper.
The company indicated in the SEC filing that the net proceeds from the offering, along with additional cash on hand, would be used to fund the purchase of a majority interest in a professional sports franchise, subject to customary league approvals.
The NBA’s vetting process for new owners typically spans several weeks, with final approval required from the league’s Board of Governors.
Cuban’s ambition to build a new arena in downtown Dallas, which could also function as a casino resort if gambling is legalized in Texas, was mentioned last year. Despite the challenges faced by supporters of legalized gambling in Texas during the recent legislative session, Cuban, who will retain control of basketball operations, is likely to remain in the spotlight. His visibility in sports, business, and finance has spanned nearly 25 years, showcasing his outspoken nature, including numerous fines amassed as an owner, often directed at officials during Mavericks games.