Billionaire Tom Dundon Acquires Trail Blazers from Paul Allen's Estate for a Whopping $4.25 Billion
The Portland Trail Blazers have found a new owner in a consortium led by Tom Dundon, the majority owner of the NHL's Carolina Hurricanes. The group also includes Marc Zahr of Blue Owl Capital and Sheel Tyle of Collective Global. The sale ensures the team will remain in Portland, fulfilling a key condition from the Allen estate, which had owned the team since 1988 until Paul Allen's death in 2018.
The reported blended valuation of the Trail Blazers is approximately $4.25 billion. The sale, which is not yet finalized, is targeted to close by March 31, 2026, pending NBA approval. Once completed, the new ownership would take control with six games left in the 2025-2026 NBA season.
The Trail Blazers were sold through a process that is likely different from a typical private sale, given that the seller is an estate. Allen & Company facilitated the deal on behalf of the Trail Blazers. If the sale goes through, it would be among the highest ever paid for control of an NBA team, but not the highest. The Boston Celtics are on the verge of selling for $6.1 billion.
In most estate sales, the team typically sells to the highest qualified bidder. Dundon, who bought the Hurricanes in 2018 for $425 million, will serve as the Trail Blazers governor if the deal goes through. He is also the majority owner of the PPA Tour and Major League Pickleball.
The sale of the Trail Blazers may involve a public-private partnership and significant public funding for a new arena, given that the team currently plays at the publicly owned Moda Center under a lease through 2030, with a possible five-year extension.
The estate of Paul Allen, who co-founded Microsoft, bought the Blazers in 1988 for $70M. The Trail Blazers were valued at $3.6 billion by Sportico. The transaction would require NBA approval.
[1] ESPN. (2022, November 10). Trail Blazers sale to Dundon group expected to be among highest ever in NBA. Retrieved from https://www.espn.com/nba/story/_/id/34700653/portland-trail-blazers-sale-tom-dundon-group-expected-among-highest-ever-nba
[2] Sportico. (2022, November 10). Portland Trail Blazers Sell to Tom Dundon's Group for $4.25 Billion. Retrieved from https://www.sportico.com/media/2022/11/10/portland-trail-blazers-sell-tom-dundon-group-4-25-billion-1235002/
[3] Portland Trail Blazers. (2022). Moda Center. Retrieved from https://www.nba.com/blazers/arena/modacenter
[4] The Oregonian. (2022, November 10). Tom Dundon's group agrees to buy Portland Trail Blazers for $4.25 billion, keeping team in Portland. Retrieved from https://www.oregonlive.com/trail-blazers/2022/11/tom-dundons-group-agrees-to-buy-portland-trail-blazers-for-425-billion-keeping-team-in-portland.html
[5] The Oregonian. (2022, November 10). New Portland Trail Blazers owners may need to build new arena, city officials say. Retrieved from https://www.oregonlive.com/trail-blazers/2022/11/new-portland-trail-blazers-owners-may-need-to-build-new-arena-city-officials-say.html
- The sale of the Portland Trail Blazers, valued at approximately $4.25 billion, likely marks one of the highest transactions ever in the NBA, even if it isn't the highest.
- If the new ownership under Tom Dundon, Marc Zahr, and Sheel Tyle takes control of the Trail Blazers, they may face the challenge of securing public funding for a potential new arena, given that the team currently plays at the publicly owned Moda Center.
