Mark Cuban shocked the sports world on Nov. 28 when it became public that he would be selling the NBA's Dallas Mavericks.
According to a report by The Athletic's Shams Charania and longtime NBA reporter Marc Stein, Cuban is selling a majority stake of the Mavericks to Miriam Adelson and her family which would value the franchise at $3.5 billion.
Adelson and her family are worth $31.4 billion according to Forbes, which ranks her as the 44th richest person in the world. She is the largest shareholder of the Las Vegas Sands Corporation, and the company announced on Nov. 28 that she was selling $2 billion in stock to purchase a sports franchise. That wound up being the Mavericks.
Related: Dallas Mavericks will have a new owner - What we know about Mark Cuban's $3.5 billion deal
But in an unprecedented move, Cuban, who is known as one of the most active team owners in all of professional sports, will maintain shares in the team and control of basketball operations.
That unique dynamic between Cuban and the Mavericks' new majority ownership could explain why Cuban's sale was valued lower than projections.
Forbes' NBA franchise valuations released last month valued the Mavericks at $4.5 billion, the seventh highest among NBA teams and a full billion dollars more than what Cuban fetched from Adelson in valuation.
Sportico valued the Mavericks at $3.26 billion as of December 2022, 10th among NBA franchises, but that number was likely going to go up this year. For example, the Phoenix Suns were valued by Sportico at $3 billion but were sold for $4 billion just two months after Sportico's valuations were published.
That difference in price doesn't mean that purchasing an NBA team was a bad investment for the former Shark Tank judge. Cuban purchased the Mavericks in January 2000 for $285 million, which shows that team value has appreciated by nearly 1,300% in just over two decades.
Sports franchises have turned into a strong investment tool as of late with teams from many teams across both the major sports and the growing leagues showing double-digit year-on-year growth. There's no better example than the Washington Commanders who were sold for $6.05 billion earlier this year, the largest sale of a professional sports team in history.
Major sports leagues outside of the NFL have also opened up investment from institutional capital over the last few years which has allowed for more investors and could boost valuations even higher.
Related: Mark Cuban’s net worth: 'Shark Tank' investments, the Dallas Mavericks, and more
There have been a handful of NBA teams sold over the last few years as valuations have continued to shoot up. Here's how the Cuban's Dallas Mavericks sale compares with other NBA teams:
Recent NBA franchise sales
| Team | Year Sold | Valuation (in billions) | New Owner | Previous Owner |
|---|---|---|---|---|
Dallas Mavericks |
2023 |
$3.5 |
Miriam Adelson |
Mark Cuban |
Charlotte Hornets |
2023 |
$3.0 |
Gabe Plotkin and Rick Schnall |
Michael Jordan |
Milwaukee Bucks* |
2023 |
$3.5 |
Haslam Sports Group |
Mark Lasry |
Phoenix Suns |
2023 |
$4.0 |
Matt Ishbia |
Robert Sarver |
Minnesota Timberwolves |
2021 |
$1.5 |
Marc Lore, Alex Rodriguez |
Glen Taylor |
Utah Jazz |
2020 |
$1.66 |
Ryan Smith |
The Miller Family |
The Timberwolves and Jazz were both sold a few years ago, but each are now valued by Forbes significantly higher than when they were sold.
The Timberwolves, who are 29th out of 30 teams in terms of valuation, were valued at $2.5 billion by Forbes, 66.7% more than they were just two years ago.
The Jazz were valued at $3.09 billion by Forbes, nearly double of their valuation in 2020.
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