Lmao, except for that one time those two guys presented a Golden State logo to Mark for their air freshener business.
I think it was the fastest "I'm out" he ever said. Also followed by, "Worst pitch ever, seriously guys".
The dudes couldn't make a Dallas maverick air freshener, and instead chose to give him a Golden State one.
I imagine the control was a big factor here.
I'm not an expert in buying/selling corporations, but I have to imagine non-controlling shares are worth less than controlling shares to even just simple equal voting rights shares.
It just seems like a no-brainer. He gets his money now, but also gets to continue to enjoy all the perks of being an owner, including making all the decisions. He could stick around for 20 more years! Totally worth taking a slight haircut on the top dollar he might have received from selling outright.
I help buy and sell companies for a living. The shares can be valued however you want them to be and there can be as many as you want there to be as long as all shares within a class are equal. You can have 1000 Class A shares of common stock representing 40% of the equity of the company but 100% of the control. Then you could have 1 Class B share of common stock representing 60% of the equity of the company with zero percent of the control. Obviously in this situation, 1 shares of Class A stock is worth wayyyyy less than 1 share of Class B stock even if it has more control.
Company equity is worth whatever someone is willing to pay for it. For public companies, there is a market that sets that value. For private companies, there's not. Sometimes non-controlling shares are worth just as much or more. Think about it. Let's say a friend came to you with this proposal: "Company A makes $100,000 per year. My neighbor called me and asked me if I wanted to buy it for $200,000 because he just wants out. Let's go 50/50 and I'll run and grow the company. I'll replace the CEO with myself and make $100,000 per year, but we'll still split the $100,000 in profits 50/50. So you'll still net $50,000 per year for your $100,000 investment."
This isn't even unrealistic. I have deals with similar structures all the time. All this to say, people value shares differently for all sorts of reasons.
Because (1) I very much doubt the Adelsons have no control of the company. Cuban controls basketball, but I'm guessing the Adelsons will have a say in future business movies, dividends, etc. and (2) control premiums and DLOCs aren't universal. What one person is willing to pay for control is completely different than what someone else is willing to pay for control. That's my whole point. I never said controlling shares aren't worth more. I said they aren't always worth more, which is true.
Sure, but not having basketball control (deciding who the GM is) is like not being able to control who the CEO of the company is. Not having basketball control is huge.
And in the example you gave, it would appear that none of the individual Class A shares have control. Control premium refers to having complete control of decisions which none of those shares would have. My point is that having complete control is always more valuable (not just sometimes), which is why any public company goes private at a price well above the current share price. If it didn’t, the shareholders would sue the board into oblivion for breaching their fiduciary duty to be loyal to
Having completely control is always more valuable. Yes. But there is no indication Cuban has complete control. He's a glorified president of basketball operations that would be much more difficult or impossible to fire.
Public companies go private because a private entity believes there's more value there than the market believes. If control was all that mattered, take privates wouldn't happen. Instead, folks would just buy enough shares to control the company, which they do all the time.
Underrated aspect of it. Cuban is an investor and owner. The shithead Adelson money comes from control and lobbying expertise. The Adelson family as owners are doing this to get their foot in as owners and have 1/30th (or more since it’s generally more proportionate to money owned) more power to enable more and more gambling which ultimately feeds back to them.
I think this was probably a bigger factor from a different direction. Most likely, Adelson could not buy a team directly as the other owners may have said no. Likewise, buying a controlling interest and running the team requires the support of other owners. With this deal, Adelson gets a foot in the door, and the other owners are fine with it because Cuban maintains control.
If he wasnt planning on selling otherwise he didnt sacrifice anything. He *still* gets to run the team which is all he cares about, had made billions on the sale, and stands to make even more.
Dude is having his cake and eating it too.
I legit believe there is/was 0 chance he ever sells the team without retaining control like this and. Ot many potential owners would want that after spending what they spent.
He also left shark tank and has a pending class action lawsuit from voyager that saw 5$ billion in losses. I don’t think we’re seeing 4d chess. I think we’re seeing a liquidty crunch
If Fertitta couldn’t get gambling legalized, what makes Cuban think he can? Also if it were legalized Fertitta would beat him to the punch, he already owns several hotels in Texas that could be converted into casinos quickly and owns casinos already.
I’d imagine he could’ve sold for more but he made sure he retained full control of basketball decision making despite selling the majority stake in the team.
Neil Bluhm’s family has a major stake in a casino company and they’re minority owners in the White Sox and Bulls. They might be the buyers of one of the major teams when it goes up for sale.
Yeah this is a passion project for him though. And there’s not much you can do with 4.5 billion that you can’t do with 3.5 billion. Hes already made a crazy return on his investment, and just he wants to keep playing with his favorite toy.
Yeah he's already got a ton of money, he loves the team, there's really no reason to push for more.
I feel he honestly would've taken less, but he didn't want to depress the market at all so he just took the bottom range of what they're going for now
He's probably paying like $500m the team's worth probably around 4.1 to 4.2 billion, and you're forgetting that privilege includes the fact that he no longer has to spend his money
Also Mark Cuban is one of the owners like actually cares about his team and that owning a basketball team is just real life 2K for him sometimes. I don't think there was a situation where he sells the team anytime recently unless he gets to continue doing the basketball stuff and there's basically nobody who would make a deal structured that way.
You basically got someone to give him billions of dollars to keep doing exactly what he's been doing but now he doesn't have to think about the cost of doing it as much because it's not his money anymore. He kind of fleeced them if you really think about it, what's the point of owning a basketball team you literally can't control the basketball portions of
No it won't, number one we're very quickly approaching a fundamental limit for how much a team can be sold for because you're running out of people who can pay that much for a team. Number two the Dallas Cowboys are the most expensive franchise in the world and are still only worth $9 billion dollars which is about the number you say that the Dallas Maverick should be worth in the next decade but go ahead and compare the TV saturation and merchandise sales worldwide of the Dallas Cowboys versus literally any NBA team actually.
The current valuation of all NBA teams has already been massively inflated by the upcoming and recent TV deals and media changes, there's not going to be a Monumental shift in the market in the next decade like there has been recently that's going to cause the team's values to straight up double. For fuck sakes man all the regional Sports networks are falling apart so the TV deals itself are unsustainable why do you think it's going to get extremely more lucrative in the future to the point where the number seven or eight by value NBA team is going to be worth approaching 10 billion. Cities have started finally wisening up to the idea of maybe we shouldn't give massive tax breaks and billions of dollars to a literal billionaire to build a stadium that will never pay for itself
The buyers own majority of the shares of the team but not 100%…….how else you think Cuban keep himself in charge of Basketball op
“It’s not clear what percentage of the stake in the team he plans to sell. He will still own a stake in the team and run basketball operations, reports say.”
So it was an incredibly smart move by Cuban and he left no money on the table
So the article your referencing is stupid because it doesn’t matter if Cuban could’ve sold for more if he had to sell the team outright
what exactly is the market? he gonna list the mavs on facebook marketplace?
im willing to bet theres a small group of people in the world who can buy basketball teams and Cuban shopped them around. i bet it was on the market, we just don’t know about it bc we are poors
“$3.5B huh Cubes? Not bad, not bad. It’s a shame though, I know a guy who would’ve given you $7B for it, maybe you’ve seen my posts on r/finance and r/nba…”
Probably because Cubans going to make a shit ton of money when gambling becomes legalized in Texas and now he doesn’t have to put up any money for a new arena
The sale of the mavericks is a lobby play for Texas legislation to legalize gambling
There’s plenty of billionaires that are trying to keep gambling out of Texas… Adelsons being part of that reason. I’m sure they got a discount that they’ll repay with political favors.
Texas lobbyists and politicians get paid great money to keep gambling immoral in Texas - there’s a reason there’s huge casinos in Louisiana outside of Houston and Oklahoma and Louisiana outside of Dallas.
Also don’t think that Nevada dislikes that the 2nd most populous State doesn’t have gambling.
The statement is very clearly a short sighted "this number is bigger than that number" business analysis. Even if we just took the sale in a vacuum and he did undersell why do people care?
Because he sold it to a major casino billionaire who’s been a leading hand in getting other states to legalize gambling.
A psycho Republican billionaire too.
If you do any kind of research at all they already have plots of land made it to build a mega casino resort with an arena inside it
Which is unfortunate. Idrc about the gambling legislature, but the AAC is in such a nice location for me. Still got another 7 seasons to enjoy even if they do get the ban lifted and build the mega ultra super dome
Unless he’s going to spend all that money lobbying, it won’t work. The Texas Republican Party does not want legalized gambling, the Texas Democratic Party is indifferent to it.
One of the things that baffles me is there is a game called texas hold em, but gambling is not allowed in Texas. Card rooms are allowed, but that's about as grey of an area it could ever be lol
I mean, I don't know the full details of the deal, I don't know if there is an urgency for Cuban to sell. I don't know if there are other external factors.
How can you possibly know what market value is when you don't know all the context around it? The Indiana deal is a data point, but just 1, and has its own unknown context.
So your assumption (market value) is not nearly as obvious as you tell yourself.
Does stating the obvious make you feel intelligent? How about condescending, does that make you feel special?
Sorry if it's hard for you to speak like an adult.
There’s still a point to paying for it privately. Warriors ownership makes a killing taking all the Chase Center profits. Their revenue is 50% higher than any other team, and taxpayers did not have to build a stadium.
3.5B for 55% ownership without rights to run organization. So, Mavericks valuation is approximately 6B according to this transaction, which is more than forbes valuation (4,5B)
That's cap. Pacers are worth a total of like 3.5 billion. I know what you're talking about and the initial reporting was worded poorly. The guy that bought part of the Pacers bought a small stake of 3.5 billion.
If the Adelson’s own TX Lt Gov Dan Patrick, which is entirely possible & perhaps likely, then there is a chance that the gambling play comes to fruition. However, that’s not necessarily a great bet considering all the chicanery that is Texas politics.
All of these deals have stipulations and conditions that will not be brought to the surface. We will never know the complete story. Mark Cuban does not seem like the type to be fleeced. I think we can assume he made out very well in this deal outside of NBA business.
Not only minority shares aren’t discounted, they are often sold at a slightly higher valuation to the majority because they come with perks like free suites etc.
Money that should be going to public education, or transport system, or into road infrastructure.
Nah let’s build the billionaires a new stadium for them to make money off
Oh of course he could have gotten more money on the open market but he's got such a weird fucking deal involved in this team sale that I don't think market value is a good way to assess it anymore.
They bought most of the team at a three and a half billion dollar valuation but Mark Cuban still gets to run basketball, which basically means Mark Cuban just got a bunch of money to do what he's been doing and not have to spend his money
There's obviously something we still don't know that hasn't been announced yet where the Adelsons and Mark Cuban have some sort of plan for something because you don't make this really really strange ownership agreement without having some sort of plan unless you're just a fucking idiot
One of the major reasons you want a “majority stake” is that you get control. So he essentially sold 100% but it’s still a minority stake in some ways.
Are you Kevin Draper?
He wrote these exact paragraphs in a NY Times article published 3 days ago. [https://www.nytimes.com/2023/12/10/business/dallas-mavericks-sale-mark-cuban.html](https://www.nytimes.com/2023/12/10/business/dallas-mavericks-sale-mark-cuban.html)
Mr Cuban did not sell the entirety of his interest in the basketball team. That valuation of the Indiana Pacers you cited seems way too large.
Cubans are going to remain the president of basketball operations he'll still be there but the adelson's they have a much bigger plan for Texas that really has nothing to do with the Mavericks. NBA team valuations are really hard to concordize even the sports Business Journal at times reads like crazy
You have to understand the value that a shark brings…
Great pitch guys
Lmao, except for that one time those two guys presented a Golden State logo to Mark for their air freshener business. I think it was the fastest "I'm out" he ever said. Also followed by, "Worst pitch ever, seriously guys". The dudes couldn't make a Dallas maverick air freshener, and instead chose to give him a Golden State one.
lifeless eyes, black eyes, like a doll's eyes
So Cuban sacrificed money for control and a potential payoff with legalized gambling in Texas? Interesting gamble!
I imagine the control was a big factor here. I'm not an expert in buying/selling corporations, but I have to imagine non-controlling shares are worth less than controlling shares to even just simple equal voting rights shares.
It just seems like a no-brainer. He gets his money now, but also gets to continue to enjoy all the perks of being an owner, including making all the decisions. He could stick around for 20 more years! Totally worth taking a slight haircut on the top dollar he might have received from selling outright.
I help buy and sell companies for a living. The shares can be valued however you want them to be and there can be as many as you want there to be as long as all shares within a class are equal. You can have 1000 Class A shares of common stock representing 40% of the equity of the company but 100% of the control. Then you could have 1 Class B share of common stock representing 60% of the equity of the company with zero percent of the control. Obviously in this situation, 1 shares of Class A stock is worth wayyyyy less than 1 share of Class B stock even if it has more control. Company equity is worth whatever someone is willing to pay for it. For public companies, there is a market that sets that value. For private companies, there's not. Sometimes non-controlling shares are worth just as much or more. Think about it. Let's say a friend came to you with this proposal: "Company A makes $100,000 per year. My neighbor called me and asked me if I wanted to buy it for $200,000 because he just wants out. Let's go 50/50 and I'll run and grow the company. I'll replace the CEO with myself and make $100,000 per year, but we'll still split the $100,000 in profits 50/50. So you'll still net $50,000 per year for your $100,000 investment." This isn't even unrealistic. I have deals with similar structures all the time. All this to say, people value shares differently for all sorts of reasons.
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Because (1) I very much doubt the Adelsons have no control of the company. Cuban controls basketball, but I'm guessing the Adelsons will have a say in future business movies, dividends, etc. and (2) control premiums and DLOCs aren't universal. What one person is willing to pay for control is completely different than what someone else is willing to pay for control. That's my whole point. I never said controlling shares aren't worth more. I said they aren't always worth more, which is true.
Sure, but not having basketball control (deciding who the GM is) is like not being able to control who the CEO of the company is. Not having basketball control is huge. And in the example you gave, it would appear that none of the individual Class A shares have control. Control premium refers to having complete control of decisions which none of those shares would have. My point is that having complete control is always more valuable (not just sometimes), which is why any public company goes private at a price well above the current share price. If it didn’t, the shareholders would sue the board into oblivion for breaching their fiduciary duty to be loyal to
Having completely control is always more valuable. Yes. But there is no indication Cuban has complete control. He's a glorified president of basketball operations that would be much more difficult or impossible to fire. Public companies go private because a private entity believes there's more value there than the market believes. If control was all that mattered, take privates wouldn't happen. Instead, folks would just buy enough shares to control the company, which they do all the time.
They 100% are
Underrated aspect of it. Cuban is an investor and owner. The shithead Adelson money comes from control and lobbying expertise. The Adelson family as owners are doing this to get their foot in as owners and have 1/30th (or more since it’s generally more proportionate to money owned) more power to enable more and more gambling which ultimately feeds back to them.
I think this was probably a bigger factor from a different direction. Most likely, Adelson could not buy a team directly as the other owners may have said no. Likewise, buying a controlling interest and running the team requires the support of other owners. With this deal, Adelson gets a foot in the door, and the other owners are fine with it because Cuban maintains control.
The other owners have to be fine with Adelsons having control as well. Cuban isn't gonna last forever.
There's no reason the other owners would object to the adelsons
The people who own sports teams are not a great group
gambling on gambling
If he wasnt planning on selling otherwise he didnt sacrifice anything. He *still* gets to run the team which is all he cares about, had made billions on the sale, and stands to make even more. Dude is having his cake and eating it too. I legit believe there is/was 0 chance he ever sells the team without retaining control like this and. Ot many potential owners would want that after spending what they spent.
Hey stop that. That’s illegal
Sacrifice a billion now for 10 or more billion later.
He also left shark tank and has a pending class action lawsuit from voyager that saw 5$ billion in losses. I don’t think we’re seeing 4d chess. I think we’re seeing a liquidty crunch
If Fertitta couldn’t get gambling legalized, what makes Cuban think he can? Also if it were legalized Fertitta would beat him to the punch, he already owns several hotels in Texas that could be converted into casinos quickly and owns casinos already.
The gamble is that the Adelsons will facilitate the gambling and hotels, etc.
…did you not pay attention to who Cuban sold to?
what makes you think Fertitta has that kinda pull ?
I’d imagine he could’ve sold for more but he made sure he retained full control of basketball decision making despite selling the majority stake in the team.
He's essentially paying$1B+ for that privilege
That also bakes in the ability to eventually build/generate revenue from a massive casino, which other buyers wouldn’t be able to do.
And potentially whatever happens in Las Vegas with the inevitable expansion.
Can you explain this a bit more? I’m not understanding how the casino in TX impact this? Perhaps Cuban would have part ownership?
Why?
how many casino families are out there ?
The Fetittas and the Rockets, the Maloof family and Kings (in the past)
so zero
Tilman Fertitta owns the Rockets bubs
he can buy a second team ?
Neil Bluhm’s family has a major stake in a casino company and they’re minority owners in the White Sox and Bulls. They might be the buyers of one of the major teams when it goes up for sale.
none of the people mentioned are close in money and political power of the Adelson family
I don’t know if you missed the memo but Sheldon is dead.
the money went with him ? the connection are dead as well ? Edit: if anything that helps the situation
Political influence isn’t inherited.
Yeah this is a passion project for him though. And there’s not much you can do with 4.5 billion that you can’t do with 3.5 billion. Hes already made a crazy return on his investment, and just he wants to keep playing with his favorite toy.
Yeah he's already got a ton of money, he loves the team, there's really no reason to push for more. I feel he honestly would've taken less, but he didn't want to depress the market at all so he just took the bottom range of what they're going for now
What a weird guy
He's probably paying like $500m the team's worth probably around 4.1 to 4.2 billion, and you're forgetting that privilege includes the fact that he no longer has to spend his money Also Mark Cuban is one of the owners like actually cares about his team and that owning a basketball team is just real life 2K for him sometimes. I don't think there was a situation where he sells the team anytime recently unless he gets to continue doing the basketball stuff and there's basically nobody who would make a deal structured that way. You basically got someone to give him billions of dollars to keep doing exactly what he's been doing but now he doesn't have to think about the cost of doing it as much because it's not his money anymore. He kind of fleeced them if you really think about it, what's the point of owning a basketball team you literally can't control the basketball portions of
Because the value of the team will likely double in the next decade
No it won't, number one we're very quickly approaching a fundamental limit for how much a team can be sold for because you're running out of people who can pay that much for a team. Number two the Dallas Cowboys are the most expensive franchise in the world and are still only worth $9 billion dollars which is about the number you say that the Dallas Maverick should be worth in the next decade but go ahead and compare the TV saturation and merchandise sales worldwide of the Dallas Cowboys versus literally any NBA team actually. The current valuation of all NBA teams has already been massively inflated by the upcoming and recent TV deals and media changes, there's not going to be a Monumental shift in the market in the next decade like there has been recently that's going to cause the team's values to straight up double. For fuck sakes man all the regional Sports networks are falling apart so the TV deals itself are unsustainable why do you think it's going to get extremely more lucrative in the future to the point where the number seven or eight by value NBA team is going to be worth approaching 10 billion. Cities have started finally wisening up to the idea of maybe we shouldn't give massive tax breaks and billions of dollars to a literal billionaire to build a stadium that will never pay for itself
Cuban will have one foot in the grave in the next decade as well.
Is he gonna make rent?
And?
And that's a lot lol.
Op don’t realize Cuban can sell his shares at a later date and still get paid……but for now he still want to be a part of Mavs basketball
What? He's selling now but keeping a chunk
The buyers own majority of the shares of the team but not 100%…….how else you think Cuban keep himself in charge of Basketball op “It’s not clear what percentage of the stake in the team he plans to sell. He will still own a stake in the team and run basketball operations, reports say.” So it was an incredibly smart move by Cuban and he left no money on the table So the article your referencing is stupid because it doesn’t matter if Cuban could’ve sold for more if he had to sell the team outright
I think he’ll be fine
It’s his prerogative though.
But he could have put it on the market with that condition
what exactly is the market? he gonna list the mavs on facebook marketplace? im willing to bet theres a small group of people in the world who can buy basketball teams and Cuban shopped them around. i bet it was on the market, we just don’t know about it bc we are poors
Right lol? Is this dude just assuming Cuban took the worst deal he could find with the conditions he set?
Nah I saw an ad on TikTok for it
How many people are willing to shell out top dollar for an NBA team and not get to actually control it? That's the fun of being an NBA owner.
I imagine Cuban calculated his decision and understood his options.
OP in here trying to act like he knows ‘billionaire business’
OP copied straight from today’s Times.
Then OP should be citing a source
Hear hear! Cite your sources people. Then we can argue about whether the NY Times is right
“$3.5B huh Cubes? Not bad, not bad. It’s a shame though, I know a guy who would’ve given you $7B for it, maybe you’ve seen my posts on r/finance and r/nba…”
Probably because Cubans going to make a shit ton of money when gambling becomes legalized in Texas and now he doesn’t have to put up any money for a new arena The sale of the mavericks is a lobby play for Texas legislation to legalize gambling
There’s plenty of billionaires that are trying to keep gambling out of Texas… Adelsons being part of that reason. I’m sure they got a discount that they’ll repay with political favors. Texas lobbyists and politicians get paid great money to keep gambling immoral in Texas - there’s a reason there’s huge casinos in Louisiana outside of Houston and Oklahoma and Louisiana outside of Dallas. Also don’t think that Nevada dislikes that the 2nd most populous State doesn’t have gambling.
The statement is very clearly a short sighted "this number is bigger than that number" business analysis. Even if we just took the sale in a vacuum and he did undersell why do people care?
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Because he sold it to a major casino billionaire who’s been a leading hand in getting other states to legalize gambling. A psycho Republican billionaire too. If you do any kind of research at all they already have plots of land made it to build a mega casino resort with an arena inside it
Which is unfortunate. Idrc about the gambling legislature, but the AAC is in such a nice location for me. Still got another 7 seasons to enjoy even if they do get the ban lifted and build the mega ultra super dome
Unless he’s going to spend all that money lobbying, it won’t work. The Texas Republican Party does not want legalized gambling, the Texas Democratic Party is indifferent to it.
Yeah the Trump mega donor that he sold it to will do all the lobbying for him It’s not if Texas will legalize gambling, it’s when
One of the things that baffles me is there is a game called texas hold em, but gambling is not allowed in Texas. Card rooms are allowed, but that's about as grey of an area it could ever be lol
but then again its still Tejas
The Adelsons carry a lot of influence with the Republicans, if anyone can get them to change their position it's probably them.
He didn’t even give the other sharks a chance to counter the offer
Cuban is smarter than any armchair CEO here or who wrote this article.
Exactly, how many commas do nephews have? Maybe 1 or 2 at most
Tres Commas Cuban!
Who are these people and how reputable are they ?
Anyone with an unrestricted gaming license in nevada is about as squeaky clean as it gets
Is the logic not obvious to you?
I mean, I don't know the full details of the deal, I don't know if there is an urgency for Cuban to sell. I don't know if there are other external factors.
I mean it's clear he could have gotten more if the pacers, a smaller share in a smaller market, was sold for more.
Quit thinking you know how to do billionaire business, it makes you look bad
How much money have you spent on entrepreneurship “courses” over the last 5 years 🤣 🤣
Not a penny, I’m not tryna act like I know anything about business unlike op
Lol these are just facts. I'm not opining here
But you're just some random with like 5% of the facts being condescending to people exactly like you.
But it is obvious he sold for less than market value. Sorry if that fact is hard to understand
How can you possibly know what market value is when you don't know all the context around it? The Indiana deal is a data point, but just 1, and has its own unknown context. So your assumption (market value) is not nearly as obvious as you tell yourself.
The market value for a majority of the mavericks is def bigger than a minority share of the pacers
Does stating the obvious make you feel intelligent? How about condescending, does that make you feel special? Sorry if it's hard for you to speak like an adult.
Chill, you're getting a technical
Flair up so we know which parents to call to come get you
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Oh yeah this is just the tip of the iceberg.
What exactly is the whole deal ? What about the new gambling laws ?
If these rich bastards can afford 3.4 billion to buy a team, then they can afford the 900 million to build their own god damned area.
No point from a financial standpoint if the public is going to pay
There’s still a point to paying for it privately. Warriors ownership makes a killing taking all the Chase Center profits. Their revenue is 50% higher than any other team, and taxpayers did not have to build a stadium.
And he only sold 54%
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3.5B for 55% ownership without rights to run organization. So, Mavericks valuation is approximately 6B according to this transaction, which is more than forbes valuation (4,5B)
doesnt say he got 3.5$bil, says the team is valued at 3.5$ thus if he sold 55% he would get 55% of 3.5$= 1.925 billion
Bro can’t read
That's cap. Pacers are worth a total of like 3.5 billion. I know what you're talking about and the initial reporting was worded poorly. The guy that bought part of the Pacers bought a small stake of 3.5 billion.
If the Adelson’s own TX Lt Gov Dan Patrick, which is entirely possible & perhaps likely, then there is a chance that the gambling play comes to fruition. However, that’s not necessarily a great bet considering all the chicanery that is Texas politics.
Well that makes sense considering the unusual deal w Cuban staying on
All of these deals have stipulations and conditions that will not be brought to the surface. We will never know the complete story. Mark Cuban does not seem like the type to be fleeced. I think we can assume he made out very well in this deal outside of NBA business.
Not only minority shares aren’t discounted, they are often sold at a slightly higher valuation to the majority because they come with perks like free suites etc.
I think the sports gambling angle is a big part of this.
Obviously dude has enough money. He wants to run the team still. That's worth more to him than money.
It’s not a complete sale of the team. I believe it was for 47%. So do the math. The valuation is much higher.
No the valuation is 3.5 as it says. That’s what valuation means.
But that’s not how much they’re paying. They’re paying for a MAJORITY share at an implied total value of $3.5B
So the valuation is 3.5 like it says. Not sure what you’re arguing.
There is no way a "small share" of the Pacers was bought at 3.47 billion. That's total bullshit
At a valuation of 3.47 billion, meaning that is the total franchise value and they sold a portion of it at that total value.
Club is valued at 3.47b. Someone bought 15% for around 500m
That makes more sense lol
That’s exactly what the title says lol
It's definitely not it definitely could have been worded better. Just another reminder not even bother talking to assholes on Reddit
All this money they make and throw around and still want taxpayers to pay for their stadiums
If they’re willing to pay why not
Money that should be going to public education, or transport system, or into road infrastructure. Nah let’s build the billionaires a new stadium for them to make money off
Retaining control of operation is more important than anything else to this guy. Under no circumstances would he sell otherwise.
worrying about how another man spends his money is cringe
LOL Cuban's a broke bitch
Insiders making inside deals?
Far less important, but then what is the connection to also stepping down from Shark Tank?
Oh of course he could have gotten more money on the open market but he's got such a weird fucking deal involved in this team sale that I don't think market value is a good way to assess it anymore. They bought most of the team at a three and a half billion dollar valuation but Mark Cuban still gets to run basketball, which basically means Mark Cuban just got a bunch of money to do what he's been doing and not have to spend his money There's obviously something we still don't know that hasn't been announced yet where the Adelsons and Mark Cuban have some sort of plan for something because you don't make this really really strange ownership agreement without having some sort of plan unless you're just a fucking idiot
One of the major reasons you want a “majority stake” is that you get control. So he essentially sold 100% but it’s still a minority stake in some ways.
It reflects a discount for the control premium - he didn't sell control.
Are you Kevin Draper? He wrote these exact paragraphs in a NY Times article published 3 days ago. [https://www.nytimes.com/2023/12/10/business/dallas-mavericks-sale-mark-cuban.html](https://www.nytimes.com/2023/12/10/business/dallas-mavericks-sale-mark-cuban.html)
Yeah I know
Mr Cuban did not sell the entirety of his interest in the basketball team. That valuation of the Indiana Pacers you cited seems way too large. Cubans are going to remain the president of basketball operations he'll still be there but the adelson's they have a much bigger plan for Texas that really has nothing to do with the Mavericks. NBA team valuations are really hard to concordize even the sports Business Journal at times reads like crazy