Gilbert purchased the Cavs for $375 million in 2005.
Cleveland Cavaliers team owner Dan Gilbert is reportedly seeking to sell a 15% stake of the franchise, according to Sportico. Gilbert purchased the Cavs for $375 million in 2005 — then a record for a standalone NBA franchise. The sale of that percentage could come in several smaller individual sales or in one transaction.
The valuation of the team has risen to $3.95 billion (18th in the NBA), in no small part due to the success of the franchise. The Cavs have made five trips to the NBA Finals under Gilbert’s ownership, winning a title in 2016.
According to Sportico, Allen & Company has been retained by Gilbert to explore the possibility of selling the 15% stake in the organization. Allen & Company was also used to help facilitate Gilbert’s bid for a WNBA franchise, which is expected to be awarded to Cleveland.
Gilbert’s desire to sell a portion of his NBA team comes at a time when many others around the league have already sold or are in the process of selling. The Boston Celtics, earlier this year changed ownership at a cost of $6.1 billion, and the equally historic Los Angeles Lakers are in the process of being sold by the Buss family for a record $10 billion. Just a few days ago, the Minnesota Timberwolves had their sale to Alex Rodriguez and Marc Lore approved by the NBA’s Board of Governors. The Portland Trail Blazers have also indicated they are looking to sell the team, with all proceeds going to philanthropic endeavors per the wishes of late owner Paul Allen.
NBA team valuations have doubled over the past four years and have jumped a staggering 1,100% over the last 15 years. It’s almost hard to imagine buying an entire NBA team for less than half of New York Mets star Juan Soto’s contract, but here we are.
In addition to the Cavs, Gilbert also owns the Cleveland Monsters of the AHL and the Cleveland Charge of the NBA G League through Rock Entertainment Group (REG). That includes the Cleveland Clinic Courts (current and future) and Rocket Arena.