NBA team owner and entrepreneur Mark Cuban surprised many people when it was announced in November that he would be selling majority control of the Dallas Mavericks.
The NBA has approved the sale. Here's what things look like moving forward.
What Happened: Cuban, who has owned the Mavericks since 2000, is selling a majority stake in the Mavericks to Miriam Adelson.
Adelson is the widow of Sheldon Adelson, who was best known as the casino magnate behind Las Vegas Sand Corp LVS.
On Wednesday, the NBA's Board of Governors approved the sale, according to a statement from the league. The transaction will see Las Vegas Sands Chief Operating Officer Patrick Dumont serve as the Mavericks' governor, according to the league.
The deal values the Mavericks at $3.5 billion and will see Cuban maintain a minority ownership stake in the NBA team. Cuban bought the Mavericks for $285 million in 2000.
The Mavericks’ $3.5-billion valuation surpasses many external predictions, ranking just behind the record-setting $4-billion Phoenix Suns sale in 2023 as the NBA’s second-highest team valuation in history.
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What's Next: The transaction from the Las Vegas Sands Corp heir could be the next step in attempting to build a casino and arena complex in Dallas, according to Bloomberg.
The casino company has tried to get the state of Texas to legalize casinos for many years, and the move is expected to help the company work with the state on a potential large resort.
Shares of Las Vegas Sands were previously under pressure when it was announced that Adelson would sell $2 billion worth of the stock to help facilitate a sports team purchase. The casino company announced it would buy back $250 million in shares in connection with the offering.
Cuban will serve as alternate governor for the Mavericks and will retain control of basketball operations after the sale.
The sale coincides with the impending lease expiration of the Mavericks’ current home, the American Airlines Center, set for 2031, according to Sportico.
"I think a new arena, real estate area and hopefully a future resort casino can replace what we lose in media and fund current and future Mavs," Cuban previously told local media.
LVS Price Action: Las Vegas Sands shares are down 1.3% to $48.40 on Wednesday, versus a 52-week trading range of $43.77 to $65.58.
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