Billionaire Tom Dundon is set to purchase the Trail Blazers basketball team from Paul Allen's estate at a whopping $4.25 billion.
The Portland Trail Blazers, a staple of the NBA's Western Conference, have a new owner. Tom Dundon, the owner of the NHL's Carolina Hurricanes, is leading an investor group that includes Marc Zahr of Blue Owl Capital and Portland-based Sheel Tyle. The sale price for the Trail Blazers exceeds $4 billion, making it one of the highest ever paid for control of an NBA team.
The Deal and Approval Process
The sale of the Trail Blazers is subject to NBA approval, with a target closing date of March 31, 2026. If approved by then, Dundon's group would assume control with six games left in the 2025-2026 NBA season. The sale is being facilitated by Allen & Company, and Hogan Lovells is serving as the legal advisor.
Location and Arena Considerations
The Trail Blazers will remain in Portland, honoring a condition tied to the sale and the Allen family’s wishes. The team currently has a lease at the publicly owned Moda Center through 2030 with an option for a five-year extension. However, NBA Commissioner Adam Silver has indicated that a new arena will likely need to be built in Portland, which may have considerable financial implications for local taxpayers.
Future Implications
The new ownership group's focus on maintaining the Trail Blazers' community legacy is evident, but the eventual need for a new venue marks a significant forthcoming challenge. Tom Dundon's success with the Carolina Hurricanes, guiding them to playoff appearances, suggests potential renewed competitiveness for the Trail Blazers under new ownership. Active roster management is also anticipated, with trade rumors involving players like Jrue Holiday.
Valuation and Previous Ownership
According to Sportico, the Portland Trail Blazers are currently valued at $3.6 billion. This sale represents a significant valuation milestone, with the sale price among the highest ever paid for control of an NBA team. Jody Allen, the executor of Paul Allen's estate, has been serving as the owner of the NBA and NFL teams. Tom Dundon bought the NHL's Hurricanes in 2018 for $425 million.
In Summary
The sale of the Portland Trail Blazers to Tom Dundon's group is a pivotal moment for the team's future both on and off the court. The new ownership group's focus on maintaining the Trail Blazers' community legacy, potential renewed competitiveness, and active roster management signal an exciting time for fans. The eventual need for a new arena, however, presents a significant challenge that will require careful consideration and planning.
People from various backgrounds, including Tom Dundon of the NHL's Carolina Hurricanes and Marc Zahr from Blue Owl Capital, have shown interest in sports as they're part of an investor group aiming to purchase the NBA's Portland Trail Blazers. The sale might lead to significant changes in basketball, considering Dundon's history of winning in sports and potential roster changes like the rumored trade of Jrue Holiday.
