As LeBron James eyes team ownership, billionaire Mark Cuban SPILLS real reason for backing out
Billionaire Mark Cuban has disclosed the reasons behind his decision to sell his majority stake in the Dallas Mavericks.
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LeBron James wants to own an NBA franchise like former Dallas Mavericks owner Mark Cuban
Mark Cuban knows a thing or two about business. He has started several companies, built them up, and sold them for profit. Cuban bought the Dallas Mavericks, built it up to be one of the most competitive teams in the NBA, and then sold it at a massive profit.
With the likes of LeBron James and other players eyeing team ownership, the billionaire reveals why he sold his team. Mark Cuban was a guest on Andrew Schultz‘s podcast Flagrant. While discussing what it takes to be in real estate, Cuban spoke about why he sold the Dallas Mavericks.
Because I’m just not good at that s**t. To compete now with the CBA, you see all these teams building real estate. That’s not me, I’m not into real estate. To go build s**t and put up billion dollars or two billion, have to borrow, no man, that’s not me.
Mark Cuban said
The 66-year-old billionaire gave examples of how the owners of the Boston Celtics, Golden State Warriors, and the Sacramento Kings are building infrastructure that will help the team earn a supplementary income. With the increasing costs of maintaining a team, it is crucial to their long-term stability.
With salaries already past the $300 million mark, Cuban feels that his way of managing a team was not going to help in the long run. This was why he sold it to the Adelson family, who have extensive experience in real estate and running businesses.
Mark Cuban’s words are a warning for LeBron James and others
NBA franchises have seen their valuations balloon to the billions. Michael Jordan found it better to cash in on the Charlotte Hornets, which brought him more than $3 billion in profits. With the likes of LeBron James and others eyeing team ownership, Mark Cuban’s words serve as a warning.
Teams now need a complete package to survive. Gone are the days when gate receipts and merchandise sales were enough. They now need other forms of income to stay profitable in the long run.
LeBron James and the Fenway Sports Group have similar ideas with regard to the Las Vegas expansion franchise. It will need completely new facilities, along with the other ancillaries. Only then can they avoid running into financial trouble.
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Joseph Varghese
(2313 Articles Published)