Miriam Adelson, widow of casino magnate Sheldon Adelson, is set to sell $2 billion worth of Las Vegas Sands stock to facilitate the acquisition of a majority stake in the Dallas Mavericks NBA franchise from current owner Mark Cuban. The deal, expected to be valued at $3.5 billion, allows Cuban to retain a stake in the organization and continue leading the team. The Adelson family, with a binding purchase agreement, plans to use the proceeds from the stock sale, along with available cash, subject to customary league approvals.
Key Points:
Background on Mark Cuban and the Mavericks:
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- Mark Cuban, a tech billionaire with an estimated net worth of $6.4 billion, acquired the Dallas Mavericks in 2000 for $285 million from H. Ross Perot Jr.
- Under Cuban’s ownership, the Mavericks have achieved significant success, including three division titles, two conference championships, and an NBA title in 2011.
Adelson Family’s Acquisition Plan:
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- Miriam Adelson, leading the family since Sheldon Adelson’s passing in January 2021, is orchestrating the acquisition of the Mavericks.
- The family has a binding purchase agreement for the team, intending to use $2 billion from the Las Vegas Sands stock sale and available cash for the purchase.
Financial Details:
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- The total valuation of the Dallas Mavericks franchise is reported to be $3.5 billion.
- Miriam Adelson, controlling over 56% of Sands stock, plans to sell about 11% of her holdings in the $2 billion stock sale.
- The stock sale is priced between $43 and $45.25 per share, representing a potential 10% discount to Las Vegas Sands’ closing price.
Cuban’s Continued Involvement:
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- Mark Cuban will retain a stake in the Mavericks and continue to lead the organization, ensuring continuity in the team’s management.
Market Reaction:
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- Following the news, shares of Las Vegas Sands experienced a 3.2% decline in extended trading, initially falling further. The stock sale is managed by Goldman Sachs and Bank of America.
Conclusion:
Miriam Adelson’s strategic move to sell Las Vegas Sands stock to fund the majority stake acquisition in the Dallas Mavericks highlights the intersection of sports and business. The deal underscores the continued appeal and valuation growth of professional sports franchises and positions the Adelson family as prominent stakeholders in the NBA. The ongoing developments are expected to shape the future trajectory of the Dallas Mavericks under new ownership.
