Cavs Insider

Cleveland Cavaliers Owner Looking to Make Huge Move

Cavaliers owner Dan Gilbert is reportedly looking to make a major move involving the franchise he purchased in 2005 for $375 million.
Evan Dammarell|
May 31, 2018; Oakland, CA, USA; Cleveland Cavaliers owner Dan Gilbert during the third quarter against the Golden State Warriors in game one of the 2018 NBA Finals at Oracle Arena. Mandatory Credit: Kyle Terada-Imagn Images
May 31, 2018; Oakland, CA, USA; Cleveland Cavaliers owner Dan Gilbert during the third quarter against the Golden State Warriors in game one of the 2018 NBA Finals at Oracle Arena. Mandatory Credit: Kyle Terada-Imagn Images | Kyle Terada-Imagn Images

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Cleveland Cavaliers

According to reports from Sportico, Cleveland Cavaliers majority owner Dan Gilbert is looking to sell a minority stake in the franchise. The same report shares that Gilbert has retained Allen & Company and has been engaged to facilitate the potential sale, which could involve up to 15% of the franchise.

The sale could go to one person or be split among several buyers, but Gilbert would still keep control of the team. He bought the franchise in 2005 for $375 million, which was a record for a single NBA team at the time. As of December, Sportico valued the Cavaliers at $3.95 billion, ranking them 18th among all NBA teams.

The move comes shortly after the Buss family’s decision to sell a controlling stake in the Los Angeles Lakers, showing a growing trend in high-value NBA ownership shifts.

NBA team values have surged in recent years, doubling over the last four and rising 1,100% over the past 15. As of December, the average team was worth $4.6 billion. In the past three months alone, the Boston Celtics and Lakers reached deals to sell portions of their franchises at premiums of 8% and 24% above Sportico’s estimated values of $6.1 billion and $10 billion, respectively.

The Cavaliers are coming off their second-best regular season ever, finishing 64-18 with a franchise-record 15-0 start. Only the 66-win 2008–09 squad had a better record. However, their playoff run ended in the Eastern Conference semifinals, with a loss to the Indiana Pacers.

Gilbert’s sports portfolio, housed under Rock Entertainment Group (REG), includes the AHL’s Cleveland Monsters, the G League’s Cleveland Charge, and operations of Rocket Mortgage FieldHouse, Cleveland Clinic Courts, and a regional sports network in partnership with Gray Media. REG also announced plans in November to bid for a WNBA expansion franchise.

Under Gilbert’s 20-year ownership, the Cavaliers have made five NBA Finals appearances and won their only championship in 2016.

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Evan Dammarell
EVAN DAMMARELL

Evan Dammarell is a credentialed, award-winning sports journalist who has covered the Cleveland Cavaliers and the NBA for nearly a decade right off the shores of Lake Erie. His work has appeared on Forbes, ClutchPoints, SBNation, FanSided, Heavy, The Locked On Podcast Network, and Right Down Euclid, among others. Evan is committed to his vision to go beyond the scores and so much more so that every fan can always keep up with what’s going on with their favorite teams on and off the court.

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