The NBA’s board of governors on Monday approved the transfer of controlling interest in the Portland Trail Blazers from the estate of the late Paul Allen to a consortium headed by investor Tom Dundon.
The league said it expects the transaction, valued by ESPN at $4 billion, to be finalized later this week. The move follows the March sale of the Boston Celtics for $6.1 billion.
Who’s in the buying group
Dundon’s partners include Portland-based entrepreneur Sheel Tyle, co-founder of investment firm Collective Global; Marc Zahr, co-president of Blue Owl Capital; and the Cherng Family Trust, the family office of Panda Express co-founders Andrew and Peggy Cherng.
Dundon’s sports background
Earlier in March, Dundon sold 12.5 percent of the NHL’s Carolina Hurricanes to three new minority investors in a deal reportedly worth $332.5 million. He first bought into the Hurricanes in 2017, became majority owner in 2018 and obtained sole ownership in 2021. Dundon is chairman and managing partner of Dallas-based Dundon Capital Partners.
Arena renovation cleared
State lawmakers cleared a key hurdle for the sale earlier this month when the Oregon Legislature approved funding for an overhaul of the 30-year-old Moda Center. The bill grants the state joint ownership of the arena with the City of Portland and sets up a mechanism to raise $365 million for renovations, easing concerns that new owners might relocate the franchise.
From Paul Allen to philanthropy
The estate of Microsoft co-founder Paul Allen began shopping the Trail Blazers last May. Allen bought the team in 1988 for $70 million and died in 2018 at age 65 from complications of non-Hodgkin lymphoma. His will directed that proceeds from the eventual sale of his sports holdings be used for philanthropic causes.
Allen’s sister, Jody Allen, has served as chair of both the Trail Blazers and the NFL’s Seattle Seahawks and is a trustee of the Paul G. Allen Trust. The estate initiated the process of selling the Seahawks in mid-February, roughly two weeks after the franchise claimed its second Super Bowl title.
The Trail Blazers’ sale is expected to close later this week, officially transferring ownership to Dundon’s group once final paperwork is complete.
Source: ESPN
