Mark Cuban, Photo by Gage Skidmore
Mark Cuban’s sale of his NBA franchise the Dallas Mavericks is set to be approved by the NBA. A few weeks ago it was revealed that Cuban was selling out to none other than Miriam Adelson, the widow of the late casino magnate Sheldon Adelson.
According to a report in the Las Vegas Journal Review, the NBA Board of Governors is conducting an e-mail vote on the matter that is expected to be concluded in the coming days.
The price being paid for the majority ownership in the Dallas Mavericks gives the team an estimated valuation of $3.5 billion. The exact amount to be paid has not yet been revealed, but Miriam Adelson revealed earlier this week that she would be cashing out $2 billion in stock from her family’s Las Vegas Sands company to make an unspecified acquisition.
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Mark Cuban, who has an estimated net worth somewhere north of $6 billion, acquired a majority stake in the Dallas Mavericks in 2000 for just for $285 million. There is a reason why people say that owning major sports franchises in America like the Mavericks is a license to print money. The franchises not only increase in value at a rate wildly above the rate of inflation, offering absurdly high returns on investment, but even after taxes, the owners pocket millions of dollars a year from the profits.
According to his official bio, in 1995, Mark Cuban and long-time friend Todd Wagner came up with an internet based solution to not being able to listen to Hoosiers Basketball games out in Texas. That solution was Broadcast.com – streaming audio over the internet. In just four short years, Broadcast.com (then Audionet) would be sold to Yahoo for $5.6 billion dollars. His trade to collar his shares of Yahoo! stock received in the sale of Broadcast.com in advance of the popping of the Internet bubble has been called one of the top 10 trades of all time.
