Adelsons Set to Secure Majority Stake in Dallas Mavericks in Blockbuster Deal
In a groundbreaking move, Miriam Adelson, the widow of the late casino mogul Sheldon Adelson, is preparing to offload $2 billion worth of shares in Las Vegas Sands Corp. The purpose? To facilitate the acquisition of a controlling interest in the NBA’s Dallas Mavericks franchise from tech billionaire Mark Cuban.
The anticipated deal, still pending an official announcement, will see Mark Cuban, aged 65 and a prominent figure in the tech industry, retaining partial ownership of the team. According to a source familiar with the Adelson family’s plans, this high-profile transaction is poised to reshape the landscape of NBA team ownership.
The valuation of the Dallas Mavericks franchise is expected to soar to $3.5 billion following the Adelsons’ entry into the ownership arena, as reported by the Athletic website.
A regulatory filing by Sands on Tuesday disclosed that the Adelson family has already entered into a binding purchase agreement for the NBA team. The acquisition will be funded through the proceeds from the upcoming stock sale, combined with existing cash reserves, all contingent on customary league approvals.
Mark Cuban, boasting an estimated net worth of $6.4 billion, acquired the Mavericks in 2000 from H. Ross Perot Jr. for a modest $285 million. Under Cuban’s stewardship, the team has achieved significant success, clinching three division titles, two conference championships, and the coveted NBA title in 2011.
Beyond his contributions to the NBA, Mark Cuban has gained widespread recognition for his involvement in the ABC talent show Shark Tank, where he has been a key figure for 15 seasons. However, a recent podcast interview reveals that he plans to exit the show after the upcoming 16th season.
While spokespersons for Sands and the Adelsons, as well as representatives for the NBA and the Mavericks, have declined to comment on the impending deal, basketball reporter Marc Stein previously reported the sale by Cuban on Substack.
Miriam Adelson, an Israeli-born physician who assumed leadership of the Adelson family following Sheldon Adelson’s passing in January 2021, is orchestrating this significant move. The president of Sands, Patrick Dumont, who is also Adelson’s son-in-law, plays a pivotal role in the family’s business endeavors, overseeing operations in casinos located in Singapore and Macau.
Despite the Adelsons’ divestment of the flagship Venetian resort in Las Vegas to Apollo Global Management Inc. last year, their ties to the gambling capital remain strong. The family still owns the Las Vegas Review-Journal newspaper, and the company is headquartered in Las Vegas.
According to the most recent proxy statement, Miriam Adelson controls over 56% of the total outstanding shares of Sands, amounting to approximately 433 million shares. The forthcoming sale represents about 11% of her total holdings and is expected to generate significant capital.
Miriam Adelson’s net worth is estimated to be around $33 billion, according to the Bloomberg Billionaires Index.
In the aftermath of the announcement, shares of Sands experienced a 3.2% dip to $46.15 in extended trading, rebounding from an initial larger decline. The 46.3 million shares being sold by Adelson were priced at $44 per share, as disclosed in a filing late Tuesday. The sale was facilitated by book runners Goldman Sachs Group Inc. and Bank of America Corp.
As this blockbuster deal unfolds, the Adelsons’ foray into NBA team ownership marks a pivotal moment in sports business, capturing the attention of fans and industry observers alike.
