It’s Official: Miriam Adelson Taking Control of Dallas Mavericks
Posted on: November 29, 2023, 04:01h.
Last updated on: November 29, 2023, 04:20h.
Following rampant speculation on Tuesday, Dr. Miriam Adelson and the Miriam Adelson Trust announced Wednesday that they have entered into a binding pact to acquire a majority share of the NBA’s Dallas Mavericks.
Rumors to that effect surfaced Tuesday when Las Vegas Sands (NYSE: LVS), the gaming company founded by Miriam’s late husband Sheldon Adelson, announced she and her family trust were selling $2 billion worth of the casino operator’s stock. In a filing with the Securities and Exchange Commission (SEC), Sands said Adelson would be using proceeds from the share sale to fund the purchase of a majority interest in an unidentified sports franchise.
Soon after news of the equity sale hit the wires, rumors surfaced that the team in question was the Mavericks. That was confirmed Wednesday by the buyers.
The Adelson and Dumont families have entered into binding purchase agreements to acquire majority ownership and the right to serve as Governor of the Dallas Mavericks,” according to a statement.
Dumont references LVS President and COO Patrick Dumont and his family. He’s Miriam Adelson’s son-in-law. Pending approval by the NBA’s Board of Governors, the Adelson and Dumont families are expected to take majority control of the Mavericks from current owner Mark Cuban before the end of this year. The “Shark Tank” star will remain with the team, overseeing basketball operations.
Adelson Share Sale News Hit Sands Stock
Prior to news of the share sale, Adelson and her family entities controlled about 57% of LVS stock. That figure will decline by approximately 10% as she funds the purchase of her interest in the Mavericks.
To be precise, the $2 billion share sale represents 46.26 million shares. Sands announced that the offering was priced at $44, well below the Tuesday closing price of $47.66. As a result, the stock slumped 4.87% Wednesday on volume that was more than six times the daily average, extending its year-to-date decline to 5.68%. The gaming company said Tuesday it will repurchase up to $250 million of the shares Adelson is selling.
The extent to which the Adelson and Dumont families are involved in basketball decisions remains to be seen, but they have the financial resources necessary to potentially attract and retain some of the NBA’s biggest stars.
Additionally, Patrick Dumont’s investment banking background and previous role as chief financial officer (CFO) of Sands could prove advantageous in terms of navigating the complex world of the NBA salary cap, if only on an ad hoc basis.
Transaction Stirs Plenty of Speculation
Clarity on the Adelson/Mavericks transaction has added fuel to the Texas gaming expansion rumor mill with chatter over the past 24 hours largely focusing on the possibility of casino resorts and sports wagering coming to the second-largest state.
Those are separate issues. For his part, Cuban has made clear he’d like to work with Sands to develop a Dallas-area entertainment district anchored by a casino hotel and a new arena for the Mavericks. Politicians would need to approve casino gaming, something they failed to do in this year’s legislative session, before the matter can be put to Texas voters.
As for sports wagering, Texas bettors shouldn’t get their hopes up simply because the largest Sands shareholders are entering the state via the Mavs acquisition. Under both Sheldon Adelson and the current leadership regime, the operator has largely eschewed online sports wagering, opting to focus on its luxury land-based casino hotels.
Source: casino.org
