Mark Cuban’s decision to sell a majority stake in the Dallas Mavericks surprised many. The billionaire investor says he did so because new ways to make money in the NBA are emerging, but it’s not one he’s familiar with.
The $3.5 billion deal between Cuba and the family of casino mogul Miriam Adelson made headlines in November 2023 before the NBA approved the sale in December. Cuban, who also owns the pharmacy company Cost Plus Drugs, currently owns a 27% stake in the basketball team and will continue to manage its operations.
On Monday, Cuban, 65, delved deeper into the reasoning behind his big decision while hosting an “Ask Me Anything” session on X, formerly known as Twitter. A follower asked Cuban, “Why did you sell part of the Mavs?”
“To spend more time with my family and because I believe the next wave of income generation will be around real estate and entertainment, as those are not my strengths,” the billionaire replied.
Cuban isn’t shy about pointing out where his strengths lie, saying in the past that he’s “really, really good at sales.”
But the “next wave” he referred to revolves around the trend of NBA franchises seeking additional revenue sources off the court, including a deal with “tech giants.” This also includes partnerships. [and building] To supplement the construction of new facilities, they built multimillion-dollar condominiums and a lively restaurant,” ESPN reports.
Cuban said in a Dec. 27 pregame interview that such a pursuit makes more sense for the Adelson family, which has a long history in entertainment, casinos and real estate. Adelson and his family are the largest shareholders in Las Vegas Sands, a giant casino and resort chain currently worth more than $37 billion.
“If you look at the teams that are spending the most money right now…it’s not because of media deals. It’s because of the real estate empires they’ve built,” Cuban said. “And I don’t know anything about it. Learning the business of pharmacy and basketball was hard enough, let alone trying to learn real estate as well.”
Miriam Adelson, recognized by Forbes as the world’s fifth richest woman, lost her family’s stake in the world’s largest casino company when her husband, Las Vegas Sands founder Sheldon Adelson, died in 2021. inherited 56% of
Of the new majority stakeholders, Cuban said in a pregame interview, “Their ability to build and redevelop the arena, and what happens beyond that, is really important.” [the Mavericks franchise] We are in a much better position to compete.”
As a longtime basketball fan, he said he foresaw this change years ago and knew he wasn’t cut out for the job.
“A couple of years ago, I started talking about casinos and destination resorts. And I knew that. I told you guys at the time that I wasn’t going to build it. ” he said.
Cuban’s desire to spend more time with his family also shaped his decision to leave ABC’s “Shark Tank,” which concludes its 16th season in 2025. But such a major career change could also make room for his other passion, sports betting.
A bill has been proposed in Texas that would legalize online sports betting, but it remains prohibited. But following a new partnership with Casino Royalty, Cuban is hopeful of making progress in bridging the gap between professional sports and gambling in Texas.
“I don’t know [when Texas will legalize sports betting]” Cuban posted on X on Monday.
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”
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