Dan Gilbert in Advanced Talks to Divest Minority Share of Cavaliers to Blue Owl
dan-gilbert-advanced-talks-sell-minority-cavaliers-blue-owl
Cleveland Cavaliers owner Dan Gilbert is closing in on an agreement to sell between 5 percent and 10 percent of the NBA franchise—and of Cleveland’s planned WNBA team—to investment firm Blue Owl, according to multiple reports.
People familiar with the negotiations told Bloomberg that the deal would value the basketball properties at $5.5 billion. Gilbert, who bought the Cavaliers for roughly $375 million in 2005, would keep majority control.
Expanding sports portfolio
Blue Owl has steadily built a presence across the league. The firm already holds minority positions in the Atlanta Hawks, Charlotte Hornets, Sacramento Kings and Minnesota Timberwolves, and previously sold a stake in the Phoenix Suns.
Long-planned move
The potential sale follows Gilbert’s decision last year to hire Allen & Company to explore selling as much as 15 percent of the Cavaliers, Sportico reported. That outlet estimated Cleveland’s franchise value at $4.86 billion in December, underscoring the rapid rise reflected in the current $5.5 billion figure.
Recent team outlook
Shortly after the Cavaliers were eliminated in the Eastern Conference finals, Gilbert addressed fans on X, writing, “We took a step ahead this spring, but we are nowhere near where we need to be… We will grind until we get there.”
Should the transaction be completed, Gilbert would remain in charge of basketball operations while adding Blue Owl as a new minority investor.
Source: Hoops Wire
