Cash Struggles & 1 Other Fear Forced Billionaire Mark Cuban to Follow Michael Jordan’s Footsteps for Mavericks Sale

It's a golden era to own an NBA team, with revenues and team values reaching new heights. But some owners are cashing out for big returns. Wyc Grousbeck put the Boston Celtics up for sale before their 18th NBA title. Mark Cuban took a similar route with the Dallas Mavericks last year. He had cash flow worries and other fears. Much like Michael Jordan's move with the Hornets, Cuban made his exit—walking away with a hefty profit.

Mark Cuban bought the Dallas Mavericks for $285 million in 2000. But when he sold a majority stake in the team last year, the value soared up to $3.5 billion. Cuban said he sold the team because he was doubtful if one of his three kids, ages 14 to 20 wanted to eventually run the franchise. "If they don't," the business tycoon told The Athletic, "it's a nightmare trying to figure how to deal with estate issues."

Meanwhile, the iconic NBA legend Michael Jordan paid $275M for the Hornets in 2010 and sold them for $1.5 billion in 2023. Well, according to an anonymous investor, most owners might be "hitting the tipping point" a bit, lately. He said: "Most owners that have been in for a while in any of the sports leagues are sort of asset rich and cash poor." The secret NBA owned added: "Most of the long-term standing owners, I think, if you ask them, I think in their wildest dreams, they could never have imagined that these teams would become these mini Disneys as I call them, or these phenomenal entities that have tremendous economic capacity."

Well, putting teams up for sale seems to have become a new trend in the NBA-verse. Why shouldn't it be? The owners are indeed getting their share of the profit no matter which franchise they bought and when they bought. Thus Mark Cuban just like most NBA owners gave up his stakes keeping just 27.7% of what he owned once in the Mavs.

Mark Cuban and other owners selling off their NBA team is a new normal Mark Cuban sold his majority share of the Dallas Mavericks at the start of 2024. He pocketed $3.5 billion but kept a 27.7% stake. Cuban explained that running an NBA team now requires more than basketball. Owners need casinos or major real estate projects to stay competitive. "When I first bought [the Mavericks] in 2000, I was the tech guy in the NBA," he said on the All-In podcast. "Now fast-forward 24 years... you have to have other sources of revenue." Cuban didn't want to invest billions in something outside his expertise

At the same time, Larry Miller sold the Utah Jazz for $1.66 billion after buying the team for roughly $25 million in the mid-80s. Meanwhile, Glen Taylor paid $88M for the Timberwolves in 1994. But took a $1.5 billion offer from Marc Lore and Alex Rodriguez. Marc Lasry sold a 25% stake in the Milwaukee Bucks for $3.5 billion in 2023. Well, these are just a few examples of what the market for the NBA looks like currently. And honestly, it isn't an exaggeration to say that with the right cash flow and assets to rely on, now is the right time to own a team.

Mark Cuban's move shows a shift in NBA ownership. Team values are soaring, but so are the pressures on owners. Franchises are now massive financial assets. Many longtime owners are cashing in rather than facing new demands. These include expansions into gambling, real estate, and other areas. Recent sales by Cuban, Jordan, and others show the changing times. While teams are worth more than ever, owning one has become more complex. By selling a stake, Cuban and others can secure profits and step back from these demands.