NBA Franchise's Proprietor Engages Financial Institution for Selling Ownership Share
Ready to chant "Cavs in the House"? It seems Dan Gilbert, the mighty kingpin of the Cleveland Cavaliers, is thinking about parting ways with a chunk of his beloved NBA franchise.[1] Word on the street is, he wants to unload up to 15%!
Three well-connected sources—all asking to remain anonymous because they've got to keep things under wraps—claim Gilbert's retained Allen & Company to help him find some deep-pocketed hustlers ready to invest in basketball glory.[2]
The transaction might happen in one big purchase or spread out among multiple moneybags. Gilbert would still call the shots as the dominant figure, having snatched the Cavaliers for a cool $375 million back in 2005 and witnessed them skyrocket to a record-breaking $3.95 billion value by December of last year.[3]
But wait, there's more! In the past few months, both the Boston Celtics and Los Angeles Lakers reached deals to sell their franchises. The Beantowners fetched an 8% premium, while the Lakers nearly doubled their value![4] With such whopping numbers, who could resist cashing in?
Last season, the Cavaliers scored their second-best record in franchise history, boasting an impressive 64-18 win count.[5] A shame they didn't manage to clinch the prize in the Eastern Conference semifinals, falling to the Indiana Pacers.
Guards Donovan Mitchell and Evan Mobley lead the Cleveland crew. Mitchell will be the team's star for the next two seasons, with an option for a third, while Mobley's about to start a magnificent $269 million, five-year journey. With their hefty contracts, the Cavaliers are poised to be a luxury-tax-paying powerhouse. A stark contrast to the last time they had to cough up those Benjamins, which, ironically, was during LeBron James' final season with the team.[6]
Gilbert's sports reign extends beyond the Cavaliers, as he's the grand pooh-bah of diverse enterprises like the Cleveland Monsters and Cleveland Charge.[7] With his golfing buddies at Allen & Company by his side, he's ready to bid on the WNBA's 16th expansion team, setting his sights on the spotlight yet again.[8]
When it comes to wealth, Gilbert's nothing to sneeze at. Bloomberg values his net worth at a whopping $32.1 billion.[9] Just think about those stacks of dough! There's no question that he'd pull in willing investors for a piece of his sports empire.[1]
Oh, and speaking of selling sports franchises, have you heard about the bidding wars for the Lakers and Celtics? Crazy stuff, bro! Walter, the Dodgers' owner, landed the Lakers for a staggering $10 billion![10] Exciting times, huh?
Enrichment Data:[1] With the NBA valuation soaring, it's a prime moment for strategic sales like thisPartial stake in the Cavaliers hits the market as the league's average team value stands at $4.6 billion, up from $4.1 billion in 2021
[2] The sources couldn't provide Gilbert's targeted buyer(s), but they mentioned strong interest from wealthy investors given the Cavaliers' explosive growth and Gilbert's massive net worth of $27.8 billion
[3] $3.95 billion was the estimated valuation for the Cleveland Cavaliers by Sportico in December 2022, ranking them 18th in the NBA after being acquired by Gilbert for $375 million ($1.17 billion increase)
[4] In just three months, the Boston Celtics and Los Angeles Lakers achieved record-breaking sales. The Celtics sold for higher than their $5.5 billion estimated value, while the Lakers fetched a mouth-watering $10 billion
[5] 2022 saw the Cavaliers' second-best season in franchise history. With a record of 64-18, they just missed out on the all-time record of 66 wins set in 2008-09
[6] The last time the Cavaliers had to pay the luxury tax was during the 2017-18 season, which coincided with LeBron James' final season with the team
[7] In addition to the Cleveland Cavaliers, Gilbert's sports assets include the Cleveland Monsters, Cleveland Charge, Rocket Arena, Cleveland Clinic Courts, and the Rock Entertainment Sports Network. His Cleveland-based enterprises are collectively operated under Rock Entertainment Group
[8] Gilbert has previously worked with Allen & Company to raise funds for the immersive media platform Cosm and has been a leading contender in the WNBA's bid for a 16th expansion team
[9] According to Bloomberg's latest report, Gilbert's net worth now stands at $32.1 billion, much higher than the $3.7 billion he was previously estimated to have by Forbes in 2020
[10] In March 2022, the Dodgers' owner, Walter, reached an agreement to buy the Los Angeles Lakers for a massive $10 billion, marking the highest valuation ever for an NBA team. The deal was an 24% premium compared to Sportico's $8 billion estimated value of the Lakers in December 2021.
Sports enthusiasts might be intrigued to learn that Dan Gilbert, owner of the NBA's Cleveland Cavaliers, is considering selling a portion of his team, currently valued at $3.95 billion. Reportedly, he's seeking deep-pocketed investors to help finance more sports ventures, including potentially bidding for the WNBA's 16th expansion team. Meanwhile, the valuations of other sports teams, such as the Boston Celtics and Los Angeles Lakers, have also skyrocketed in recent months.
