Purchase low, promote excessive. Mark Cuban simply proved himself a grasp of that tried-and-true funding mantra.

The Shark Tank mainstay will not be solely swimming away from that present after 14 profitable seasons, he has now acquired approval from the NBA Board of Governors to promote the bulk stake in his beloved Dallas Mavericks.

Cuban purchased the Mavericks for $285 million in 2000 is now promoting the crew for about $3.5 billion. That’s a cool $3-plus billion over the acquisition value and Cuban will reportedly retain 27% of the crew and will properly retain management of basketball operations. A reasonably candy deal.

Per Yahoo Sports activities:

Cuban is promoting at a time franchise values are rising (partially primarily based on a brand new nationwide tv broadcast deal beginning in 2025 [that is] anticipated to double that nationwide income) and sure enlargement will deliver a flood of money to groups’ backside traces (by means of enlargement charges). Cuban has expressed concern up to now in regards to the broadcast deal after this one (seemingly after 2030) and expresses concern that the sports activities broadcast rights bubble might burst.

Cuban can also be promoting at a excessive level when it comes to participant personnel. The Mavericks’ present roster, led by all-world level guard Luka Doncic and, to a lesser extent, celebrity Kyrie Irving, is the strongest the crew has assembled because it received the NBA championship behind all-time nice Dirk Nowitzki in 2010-2011.

The customer is the Las Vegas Sands Corp., owned by the Adelson and Dumont households. Miriam Adelson, widow of on line casino magnate Sheldon Adelson, introduced final month she was promoting $2 billion of her shares to purchase a sports activities crew that was extensively tipped to be the Mavericks. That has now been confirmed. Her son-in-law Patrick Dumont is the COO of Sands Corp. and can take the Mavericks’ seat on the Board of Governors.

Cuban reportedly wished to associate with The Sands to construct an enviornment, resort and on line casino in downtown Dallas. The Sands has lobbied Texas state legislators to make playing authorized within the state, which might require alterations to the Texas Structure. (Attention-grabbing to notice right here that Houston Rockets proprietor, billionaire Tilman Fertitta, can also be within the playing enterprise. He owns the Golden Nugget Casinos.)

The transfer mirrors a development that has seen skilled sports activities leagues, lengthy immune to associations with playing, embrace betting and kind official relationships with sports activities books. In 2018, the NBA turned the primary main U.S. sports activities league to associate with a sportsbook operator for authorized wagering. That deal made MGM Resorts the unique official gaming associate of the NBA and WNBA. In 2021, FanDuel took over these rights.

Additionally of curiosity to Cuban and his new companions is the variety of stadiums that now have sportsbooks within them, permitting followers to guess on the sport in progress. They embrace Rocket Mortgage FieldHouse, residence to the NBA’s Cleveland Cavaliers; Wrigley Area, the place Chicago Cubs followers can place wagers; and FedExField, residence to the Washington Commanders. All of these offers went into impact in 2023.

For Cuban, it’s a minimum of his second blockbuster asset sale. In 1999, he bought Broadcast.com to Yahoo for $5.7 billion. Cuban made the deal on the peak of the dot-com bubble. On the time, Broadcast.com had about 570,000 customers, making the acquisition value $10,000 per person. Cuban bought most of his Yahoo inventory that very same 12 months, netting over $1 billion. Yahoo! shut down most of its broadcast providers division in 2002 and discontinued Broadcast.com.

Simply months after the Broadcast.com deal, Cuban used a few of his Yahoo cash to purchase the Mavericks for $285 million.