Mark Cuban Selling the Majority Stake of the Mavs
Dallas Mavericks owner Mark Cuban has long dreamed of building a new arena for the team with a casino resort as a major part of the potential venue. After announcing a new ownership partner on Tuesday, the popular entrepreneur and Shark Tank cast member seems in a nice spot to make that happen, at least from a business perspective.
The family of late casino mogul Sheldon Adelson has reportedly agreed to purchase a majority stake in the franchise. However, the deal is also expected to leave Cuban still in charge of basketball operations.
“Adelson, listed as the fifth-richest woman in the world by Forbes with an estimated net worth of more than $33 billion, revealed in a company announcement and a Securities and Exchange Commission filing Tuesday that she is selling $2 billion worth of company stock in Las Vegas Sands Corp. — roughly 10% of her stake in the company — to fund the ‘purchase of a majority interest in a professional sports franchise pursuant to a binding purchase agreement, subject to customary league approvals,'” NBA reporter Marc Stein noted.
Details on the Deal
Cuban has yet to comment on the deal, but reports note that the agreement values the Mavericks at more than $3 billion. The gregarious owner purchased the club from Ross Perot Jr. in 2000 for $285 million. The ability to still be in charge of all things basketball may have had a bearing on the valuation, considering that Forbes recently valued the team’s value at more than $4 billion.
“The uncommon structure of the agreement, mind you, figures to hold far greater appeal to Cuban than making a deal at a higher franchise valuation, since this deal appears uniquely poised to allow him — for the foreseeable future — to function with the same hands-on ownership style that he has employed for nearly 24 years,” Stein noted.
The agreement could bring another link to legalized gaming for the NBA. Las Vegas has hosted the league’s annual Summer League for several years. Like other sports leagues, the NBA has also embraced sports betting recently as well.
The Mavericks are expected to stay in Dallas, but Cuban hasn’t been shy about his hopes in bringing a casino resort to the city as a part of a new arena for the franchise. He owns land in the Dallas area that is believed to be meant for a future arena.
“My goal, and we’d partner with Las Vegas Sands, is when we build a new arena, it’ll be in the middle of a resort and casino,” Cuban told the Dallas Morning News in 2022. “That’s the mission.”
The team is now looking to bring Sands on board, according to reports. The gaming company has lobbied heavily in recent years for casino gambling in Texas. That has yet to bear fruit, although there was some discussion in the last legislative session.
Adding casinos in the Lone Star State won’t be an easy process. Any expanded gaming would require legislative approval as well as a signature by the governor. The move would then require a constitutional amendment to be approved by voters. The state’s legislature meets every two years, so the next session isn’t until 2025.
This wasn’t the only Mark Cuban-related news this week. He also announced that his run on Shark Tank would be coming to an end. The show is currently in its 15th season.
“Next year, our 16th year, is going to be my last year, so I’ve got one more year to go,” Cuban told former NBA players Matt Barnes and Stephen Jackson on the Up in Smoke podcast.
New York Mayor Seeks Zoning Changes for Casinos
In other casino-related news, as efforts continue to bring a casino to New York City, Mayor Eric Adams is hoping the Big Apple becomes even more amenable to a new gambling venue.
The New York Post reports that Adams is concerned that the city’s zoning laws don’t reflect the possibility of a casino moving into the city. He argues that this opens a potential casino up to litigation, which could lead to delays. One potential Sands location in Nassau County is already facing legal action.
“As the state considers proposals for casinos downstate, it’s important that we create a level playing field for applicants within New York City so they can compete for this opportunity,” the city’s director of the department of city planning and planning commission chairman Dan Garodnick said. “This text amendment would avoid duplicating the state’s rigorous licensing process … while setting up a rational framework for consideration within our zoning.”
City officials argue that the move would streamline the approval process, making casinos acceptable under zoning law. The plan still needs approval from the planning commission and city council. The state is expected to approve a new casino for the city in the coming months.
