Mark Cuban, the owner of the Dallas Mavericks, is currently in discussions to sell a majority interest in the NBA franchise to the family that operates the Las Vegas Sands casino company, according to a source familiar with the negotiations on Tuesday night.
The deal is expected to be valued at around $3.5 billion and may take several weeks for the league to approve, the person, who spoke to The Associated Press on condition of anonymity, revealed as the details were not public yet.
In this potential agreement, Cuban would still maintain control over the team’s basketball operations. NBA reporter Marc Stein was the first to report on the potential sale.
Earlier on the same Tuesday, the company controlled by Miriam Adelson, the widow of casino tycoon Sheldon Adelson, announced that it was selling $2 billion of her shares for the purchase of a professional sports team, without specifying the team or league.
Mark Cuban expressed his interest in partnering with the Sands almost a year ago. He has advocated for the legalization of gambling in Texas, a matter that did not progress in the state Legislature during the most recent session.
The 65-year-old Cuban, who recently announced his departure from the popular business TV program “Shark Tank” after the 16th season next year, rose to fame quickly after acquiring the Mavericks in 2000.
Dallas, once one of the worst franchises in professional sports during the 1990s, transformed into one of the best under Cuban’s ownership, with significant contributions from star forward Dirk Nowitzki.
According to a filing with the Securities and Exchange Commission, Miriam Adelson, the controlling shareholder of Las Vegas Sands Corp., has disclosed the sale of $2 billion in stock. The filing did not specify the team, league, or location.
If the entire $2 billion is allocated for the purchase, it would mean Adelson could potentially acquire at least 57% of the NBA team, considering the $3.5 billion valuation.
The filing indicated that Adelson, 78, a medical doctor and the widow of Sheldon Adelson, intends to retain 51.3% of company shares following the sale. The family also owns the Las Vegas Review-Journal, Nevada’s largest newspaper.
“We have been advised by the selling stockholders that they currently intend to use the net proceeds from this offering, along with additional cash on hand, to fund the purchase of a majority interest in a professional sports franchise … subject to customary league approvals,” the company stated in the SEC filing.
The vetting process for new owners in the NBA typically takes at least several weeks, and approval must be granted by the league’s Board of Governors.
Additionally, Cuban expressed his desire last year to construct a new arena in downtown Dallas, which would also double as a casino resort.
However, the legalization of gambling faces challenges in Texas, where Republicans have been in power for three decades. Supporters were unable to secure a vote on a constitutional amendment in the last legislative session as the measure did not move out of committee.
