At the beginning of this week, the billionaire businessman Mark Cuban sold the majority of his ownership in the Dallas Mavericks to families who were affiliated with the late Sheldon Adelson, who was a casino mogul in Las Vegas.
The fact that Cuban lacked experience in the field of real estate was the driving force behind the transaction. He believes that real estate will play a key role in the success of NBA clubs in the future, particularly in the media industry, which is seeing growth. Fortune reported on Wednesday that Cuban has investigated the possibility of establishing a casino and destination resort that is connected to the Mavericks. Cuban referred to this as “another base of revenue.”
Today, the National Basketball Association (NBA) gave its approval to the $3.5 billion deal, which will allow Cuban to maintain a lesser ownership portion and management of the basketball franchise.
Cuban, who is also the presenter of Shark Tank and was one of the co-founders of Cost Plus Drugs, said that he was not qualified to construct such infrastructures. He stated, “If someone is going to come in as a partner and invest potentially billions of dollars, they are going to want equity.”
Cuban is optimistic about the deal, believing that it would increase the value of the Dallas Mavericks, despite the fact that the sale has taken place. “27% of a watermelon is a whole lot better than 27% of a grape,” he said, referring to the fact that he still owns 27% of the franchise.
In addition to this, he brought attention to the fact that modern sports organizations require knowledge in real estate, demonstrating that the new majority owners possess talents in areas that he does not possess. His statement was, “They are excellent at the things that I am not good at.”
The Importance of It: The National Basketball Association Board of Governors had begun the process of Cuban selling his controlling ownership in the Mavericks to Cuban earlier in the month of December. Among the prospective purchasers were members of the Adelson family as well as the Las Vegas Sands Corporation (LVS +0.89%).
The Casino family is offering a free report.
Cuban had shown interest in a new arena for the Mavericks, which could potentially be linked with a property that houses a casino resort. Due to the fact that casinos and sports betting are still illegal in the state of Texas, this move comes at a time when there are continuing efforts to modify the law regarding these activities.
