What's Happening?
Paul Allen's estate has formally agreed to sell the Portland Trail Blazers to a group led by Tom Dundon, owner of the Carolina Hurricanes. The deal, valued at $4.25 billion, is expected to close by the end of the upcoming NBA season. The new ownership group includes Marc Zahr, co-president of Blue Owl Capital, Sheel Tyle, CEO of Collective Global, and the Cherng Family Trust, co-founded by Andrew and Peggy Cherng of Panda Express fame. The sale is pending approval from the NBA Board of Governors. Dundon's group outbid RAJ Sports and the Bhathal family, who own the NWSL's Portland Thorns and the Portland Fire, a new WNBA team. The new owners have committed to keeping the Trail Blazers in Portland and are expected to address the future of the Moda Center and the surrounding Rose Quarter district.
Why It's Important?
The sale of the Trail Blazers marks a significant shift in ownership for one of the NBA's longstanding franchises. The involvement of high-profile investors like the Cherng Family Trust highlights the financial strength behind the new ownership group. Keeping the team in Portland is crucial for local fans and the city's economy, as the Trail Blazers are a major sports franchise in the region. The potential redevelopment of the Moda Center and Rose Quarter could lead to significant economic and infrastructural benefits for Portland. The sale also reflects broader trends in sports franchise valuations, with the Trail Blazers' $4.25 billion price tag underscoring the increasing value of NBA teams.
What's Next?
The next steps involve obtaining approval from the NBA Board of Governors, which is necessary for the sale to be finalized. Once approved, the new ownership group will likely focus on plans for the Moda Center and the Rose Quarter, as NBA Commissioner Adam Silver has indicated the need for a new or significantly renovated arena. The new owners will also need to establish a working relationship with the Bhathal family, who will share the Moda Center as tenants. The local coalition, Rip City Forever, has called for a public-private partnership to ensure the Trail Blazers' long-term presence in Portland, suggesting potential collaboration with city officials and business leaders.
