Tom Dundon reportedly had a chance to become the owner of a future NBA expansion franchise in Las Vegas. But instead, he chose to buy the Portland Trail Blazers for a little more than half the price of what the Las Vegas expansion team was expected to cost.
According to columnist John Canzano, Dundon scouted an idea of a potential Las Vegas expansion team for around $8 billion before ultimately deciding that buying the Portland Trail Blazers for $4.2 billion represented far better investment value.
The decision wasn’t simply about saving money. It was also about buying a known, established NBA franchise with great upside. Dundon saw Portland’s price tag as a much stronger investment than paying nearly double for an expansion franchise.
An expansion would come into the league with no infrastructure, history or fans. But the Blazers already had all three.
For Dundon, acquiring that foundation for $4.2 billion represented a much smarter and more attractive business proposition than paying $8 billion for the right to launch a new franchise and then spending even more on an arena and players.
That doesn’t mean his work in Portland is finished. In fact, the biggest challenge might only be beginning.
The Trail Blazers remain locked in tense negotiations with the city of Portland over the future of the Moda Center. The current lease expires in 2030, and the two sides remain far apart on a long-term agreement.
Dundon’s ownership group could adopt a familiar negotiating strategy. Instead of going for relocation, the ownership group could want a new arena or want greater control in the surrounding real estate.
If those demands aren’t met, the organization could leverage the city by hinting at a move elsewhere. Interestingly, Canzano doesn’t believe those threats would involve Seattle or Las Vegas. Instead, he pointed to Raleigh, North Carolina, as the most logical alternative.
Dundon already owns the NHL’s Carolina Hurricanes, which gives him an established presence in Raleigh. If negotiations with Portland continue to stall, simply having another city available is a credible option, and that could strengthen the Trail Blazers’ negotiating position.
But we do not know if relocation is truly the ultimate goal.
The threat itself might be the entire strategy. By creating uncertainty over the franchise’s future in Portland, Dundon’s ownership group could be pressuring the city into helping build a new arena or offering more favorable lease terms.
Recent reports also hint that negotiations have become increasingly strained. Still, NBA Commissioner Adam Silver has stated that the league is working with both sides to ensure that the Trail Blazers remain in Portland for a long time.
From a basketball point of view, the franchise is entering an exciting period. The Blazers have assembled a very interesting roster around Damian Lillard, Ja Morant, Jrue Holiday, Deni Avdija, Shaedon Sharpe, Scoot Henderson and Donovan Clingan.
That gives fans hope about the team’s future on the court.
But off the court, the arena situation will continue to dominate headlines. Ultimately, Dundon’s decision to pass on an $8 billion expansion franchise wasn’t simply about taking on a smaller investment.
He saw greater value in purchasing an existing NBA organization with an established brand, loyal fan base and strong growth potential.
But now comes the difficult part. If Dundon can secure a favorable arena deal that keeps the Trail Blazers in Portland, his $4.2 billion investment could be one of the smartest ownership decisions in NBA history.
If not, questions about the franchise’s long-term future in the city are only going to get louder.
