Miriam Adelson and Trust Acquire Majority of Dallas Mavericks
In an unprecedented move that sent shockwaves across the NBA, the Miriam Adelson Trust announced on Wednesday its acquisition of a majority stake in the Dallas Mavericks. This news came after much speculation on Tuesday, following the announcement by Las Vegas Sands (NYSE: LVS), the gaming company founded by Miriam’s late husband Sheldon Adelson, that she and her family trust were selling $2 billion worth of the casino operator’s stock.
It was confirmed that the proceeds from the share sale would be used to fund the purchase of a majority interest in an unidentified sports franchise, which was later revealed to be the Mavericks. This historic acquisition was formalized in a binding pact by the Adelson and Dumont families.
Pending approval by the NBA’s Board of Governors, the Adelson and Dumont families are expected to take majority control of the Mavericks from current owner Mark Cuban before the end of the year. Cuban will remain with the team, overseeing basketball operations.
The news of the share sale caused a decline in the LVS stock by approximately 10%, leading to a slump in its value by 4.87% on Wednesday. The company announced a plan to repurchase up to $250 million of the shares Adelson is selling. This transaction has sparked a lot of speculation about the future of the Mavericks and the developments in the Texas gaming industry. Mark Cuban has expressed his interest in working with Sands to develop a Dallas-area entertainment district anchored by a casino hotel and a new arena for the Mavericks. However, the approval of casino gaming in Texas would need to pass through the legislative process.
The involvement of the Adelson and Dumont families in basketball decisions remains to be seen, but their financial resources could potentially attract and retain some of the NBA’s biggest stars. Additionally, Patrick Dumont’s investment banking background and previous role as chief financial officer (CFO) of Sands could prove beneficial in navigating the complex world of the NBA salary cap. However, it is uncertain whether this will lead to any involvement in the potential expansion of casino resorts and sports wagering in Texas. The focus of Las Vegas Sands has largely been on luxury land-based casino hotels rather than online sports wagering.