This week, multibillionaire businessman Mark Cuban sold the bulk of his Dallas Mavericks ownership to relatives of the late Las Vegas casino mogul Sheldon Adelson.
What transpired was that Cuban’s ignorance of real estate led to the sale. In his opinion, real estate will play a big role in NBA teams’ future success, particularly in the shaky media landscape. According to Fortune on Wednesday, Cuban has thought about creating a casino and destination resort associated with the Mavs, referring to it as “another base of revenue.”
Cuban was able to maintain control over the basketball team and a smaller ownership stake after the NBA approved the $3.5 billion deal on Tuesday.
According to Cuban, co-founder of Cost Plus Drugs and Shark Tank host, “If someone’s going to come in as a partner and invest potentially billions of dollars, they’re going to want equity,” he acknowledged he wasn’t qualified to build such infrastructures.
Cuban is pleased with the deal, even with the sale, and thinks it will raise the Dallas Mavericks’ worth. “27% of a watermelon is a whole lot better than 27% of a grape,” he said, maintaining his 27% ownership stake in the company.
He also emphasized the necessity for real estate knowledge in contemporary sports teams, highlighting the competencies of the new majority owners in areas where he is weak. They’re excellent at the things I’m not good at, he remarked.
Why This Is Important:The NBA Board of Governors had started the process for Cuban to sell his majority ownership of the Mavericks earlier in December. The Adelson family and Las Vegas Sands Corp. were potential buyers.
Cuban had indicated interest in the Mavericks moving into a new arena that might include a casino resort. This action is being taken while sports betting and casinos are still illegal in Texas, despite ongoing efforts to amend the legislation.
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