Billionaire entrepreneur Mark Cuban earlier this week offloaded his majority stake in the Dallas Mavericks to families associated with the late Las Vegas casino mogul Sheldon Adelson.
What Happened: Cuban’s lack of knowledge in real estate prompted the sale. He sees real estate as a significant factor for NBA teams’ success in the future, especially in a wavering media industry. Cuban has considered developing a casino and destination resort linked to the Mavs, calling it “another base of revenue,” Fortune reported on Wednesday.
The NBA approved the $3.5 billion deal on Tuesday, letting Cuban keep a smaller ownership share and control of the basketball team.
Cuban, co-founder of Cost Plus Drugs and host of Shark Tank, admitted he wasn’t suited to build such infrastructures, saying, “If someone’s going to come in as a partner and invest potentially billions of dollars, they’re going to want equity.”
Despite the sale, Cuban is positive about the arrangement, believing it will enhance the Dallas Mavericks’ value. He still owns 27% of the franchise, stating that “27% of a watermelon is a whole lot better than 27% of a grape.”
He also highlighted the need for expertise in real estate in modern sports franchises, pointing to the new majority owners’ skills in areas where he lacks. He said, “They’re great at the things I’m not good at.”
Why It Matters: Earlier in December, the NBA Board of Governors had initiated the process for Cuban to sell his majority stake in the Mavericks. Potential buyers included the Adelson family and the Las Vegas Sands Corp. LVS Casino family.
Cuban had expressed interest in a new arena for the Mavericks, potentially paired with a casino resort. This move comes at a time when casino and sports betting are still prohibited in Texas, though there are ongoing efforts to change this law.
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