The Dallas Mavericks looked to be the kind of team that likely would never see a change of ownership as long as Mark Cuban was around, given his love for the franchise and active role in making them one of the most valuable NBA franchises. Despite those assumptions, Cuban sold a majority stake in the team to Miriam Adelson for a valuation of $3,5 billion. It’s unclear how much of the team Cuban still owns, but it’s clear he isn’t going to be the majority shareholder anymore, though he will remain in charge of basketball operations.
The day before he sold a large portion of his Mavericks’ stake, Cuban had stepped down from his role on ‘Shark Tank’, a show that made him into a recognizable figure across the world. These decisions would make sense for a 65-year-old Cuban if he was planning on retiring sometime soon, but it’s clear he’s motivated as ever to work, given the control he maintained over the Mavericks.
So what is the plan for Cuban? He seems headed in a direction almost no one would’ve predicted at the start of the season. Rumors are swirling around, from a potential Presidential Run to lobbying for gambling legalization in Texas all being discussed. So what could be the potential routes Cuban is headed down after all the changes he’s made in the past week?
A Future Presidential Candidate?
One of the initial reactions many people on social media had to the news was whether Cuban was preparing for a Presidential campaign.
.@ColinCowherd tells @getnickwright why Mark Cuban could be preparing for a run at President pic.twitter.com/wER2Mn7Tt6
— The Volume (@TheVolumeSports) November 29, 2023
The rumors were so rife that Cuban clarified he would not be running in the 2024 Presidential race to NBC Sports. However, that doesn’t mean there will be no presidential ambitions from Cuban’s side going forward.
Cuban contemplated running for President in the 2020 election but held off, as Joe Biden and Donald Trump went into battle as the two leading candidates, with the Democrat Biden winning. Cuban has often been considered a Democrat with his open world view and active philanthropic interests, including the operation of his Cost Plus Drugs website, which aims to shake up American healthcare by giving patients medication at a slight markup to production cost, undercutting the prices set by major pharmacies.
Most people reckon that Cuban could run as an Independent nominee but his sale of the Mavericks may show a shift in political alignment. The new majority shareholders of the Mavericks were among the biggest contributors to Donald Trump’s Presidential Campaign and have also donated to Texas Governor Greg Abbot’s political campaigns. Given who he’s made close business ties with, it would make sense to assume Cuban would choose to run from that political party, especially with him previously claiming he doesn’t want to identify as a Democrat.
A campaign in 2024 is not viable, but the 2028 election could interest Cuban if he has the time to prepare. With the advancements made in technology in recent years, especially with AI, it’s possible controlling technology becomes a viable political platform to run on. Cuban’s expertise in that field would make him one of the first tech-oriented candidates we’ve ever seen, which could be a massive advantage in a world dominated by new technology.
Does Mark Cuban See A Dip In NBA Team Values Coming?
One of the biggest talking points in sports business for the NBA in the coming season is the new media rights deal for the league. With the previous TV deal being the most lucrative in league history, there is a sense of nervousness about what the NBA will get for their next deal. Traditional sports networks are either shutting down or running in losses, including existing NBA media partners such as Disney (ESPN) and Time Warner (TNT). But with the advent of streaming sites such as Amazon, Apple, and Netflix also viable options, the league will likely get a good deal.
Cuban discussed the next media rights deal on ‘All The Smoke’, saying that he expects the next deal to be fine but is worried about the media deals that may follow.
Selling the team at a valuation of $3.5 billion, which is lower than what Forbes lists the Mavericks’ net worth could indicate Cuban having some hesitancy over the future of NBA franchises that have skyrocketed in value over the last 20 years. Does he think these teams have hit their ceiling in terms of value? That’s what some experts believe.
The discounted valuation of the sale was likely because Cuban wanted to maintain control of basketball operations. Given the non-basketball financial opportunities this opens up for Cuban through gambling, he may be pivoting onto his next big project as he could likely see his biggest investment, the Mavericks, lose value in the coming seasons.
“This is a massive red flag… I think Mark Cuban is looking and saying, ‘This is the bubble, and the bubble is about to burst.’”@DarthAmin explains why Mark Cuban selling a majority stake in the Mavs is a giant red flag ahead of the NBA negotiating its next rights deal. 🚩… pic.twitter.com/kfusXi8y6L
— Oddball w/ Amin Elhassan and Izzy Gutierrez (@oddballhoops) November 30, 2023
One way to avoid that loss of value will be integrating the basketball brand into something greater, which the team’s new owners could possibly help Cuban with.
Move To Legalizing Gambling In Texas
Texas is one of the states in the US that still hasn’t officially legalized gambling. There are no casinos allowed to operate in the state, as well as online betting platforms due to the strict rules against it. With the NBA itself partnering with sportsbooks, it’s clear sports betting has become one of the biggest revenue generators for leagues and crucially, states, in recent years. Texas has three NBA teams within its borders and could stand to benefit a lot from the legalization of betting and whatever taxation laws they apply to the same.
The Adelson family has made its fortune in Las Vegas through a network of casinos. The operating family for the ‘Las Vegas Sands’ has been trying to make moves towards the legalization of gambling in Texas before they even partnered up with the Mavericks. The Dallas Morning News had reported that the Adelson-owned Las Vegas Sands had hired 63 lobbyists to push the legalization of gambling in Texas, at a cost of $5.9 million.
Is Adelson family buying the Mavs the most expensive and clever lobbying play in history? Eventually dangle a fully private funded new arena in a top 5 US city in exchange for the legalization of casino gaming in Texas and build an integrated casino resort within the same complex
— Dave VanEgmond (@Dave_VanEgmond) November 29, 2023
Cuban had also made his intention to move the Mavericks to a new arena clear before the sale ever went through, publicly saying he wanted to build an integrated arena complex that also features a resort with a casino. With Cuban’s influence in Texas and one of the biggest GOP contributors in the Adelson family, gambling may be one step closer to being legalized in a state that has pushed very hard against it in past years.
If this ends up working, the Adelson family will have one of the most lucrative paths of entry into the brand-new gambling sector in Texas, through their ownership of the Mavericks. Cuban, who has expressed interest in online sports betting before, could possibly explore a venture in Las Vegas, where it’s legal, or wait to benefit from the legalization of the same in Texas.
Whatever is next for Cuban could either change the Mavericks completely and make them one of the first NBA teams to lean into gambling to this extent, or this could end up not working and he sold most of his team to partners that can’t fully realize their interests in Texas.
It’s definitely a high-risk move, but not one Cuban will shy away from given all the high rewards he has reaped over his entrepreneurial career.
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