Billionaire investor Mark Cuban is selling a majority stake in the Dallas Mavericks to Miriam Adelson and her family, a source familiar with the deal told CNBC.
Cuban remains involved with the team and will oversee basketball operations.
Adelson is selling $2 billion worth of Las Vegas Sands stock, or about 10% of her stake, according to a company announcement. The proceeds will be used to purchase a professional sports team, the casino company said in a filing Tuesday.
Adelson and her family are the largest shareholders in Las Vegas Sands.
“The selling shareholders have advised us that they currently intend to use the net proceeds from this offering, together with additional cash, to fund the purchase of a controlling interest in a professional sports franchise pursuant to a binding purchase agreement in accordance with customary league approvals,” Las said Vegas Sands in submission.
Las Vegas, which has become a sports mecca, is rumored to be a destination for an NBA team. The Aces of the WNBA play there and the city is the venue for the final games of the NBA’s midseason tournament.
The league did not comment on the news and the Mavericks referred CNBC to the Adelson family for comment. CNBC has reached out to Cuban for comment.
Adelson is listed by Forbes as the fifth richest woman in the world. She and her family inherited 56% ownership of the world’s largest casino company when her husband, Las Vegas Sands founder Sheldon Adelson, died in 2021. At Tuesday’s close, shares in the Adelson estate were valued at more than $20 billion.
Shares of LVS have remained roughly flat year to date, suggesting investors are factoring in the reopening of casinos in Macau, where the company has the largest real estate presence in the market, and Singapore.
Las Vegas Sands said in filings Tuesday that it will buy $250 million worth of Adelson shares. The company announced a $2 billion stock repurchase authorization in its third-quarter earnings call on Oct. 18. The stock fell more than 4% in extended trading after Adelson announced the stock sale.
“When considering our future return on capital, we expect share repurchases to be weighted more heavily than dividends. “We believe repurchases will add greater value over time than dividends because they reduce the denominator,” Patrick Dumont, president and chief operating officer of Sands and Adelson’s son-in-law, said on the call. “We fundamentally believe in the long-term added value of share buybacks.”
Owning a sports franchise will mark a significant departure from the activities that Miriam Adelson and her late husband were known for.
According to the Center for Responsive Politics, which tracks political spending, the couple set records for political donations, including more than $218 million to Republican and conservative causes in the 2020 election cycle alone.
According to published reports, Miriam recently met GOP candidate Nikki Haley as well as former President Donald Trump in Las Vegas.
As a doctor, Miriam Adelson is also widely known for her focus on addiction.
She was born in Israel and has made significant philanthropic donations to causes that improve Jewish relations in the United States. Recently, she has been a vocal critic of people protesting Israel’s military response to the October 7 Hamas terrorist attacks.
–CNBC’s Jessica Golden contributed to this article.
Source : www.cnbc.com