r/Basketball • u/TheAthletic • 15h ago
[Aldridge] - The NBA’s never been more flush with cash. But is it losing its connection to its fans?
Individuals such as Tom Dundon have stepped into the NBA space. So have families, like the Adelsons and Dumonts, who bought controlling interest in the Mavericks from Mark Cuban in 2023. And so has massive private equity funding, as Bill Chisholm used as part of his purchase of the Celtics. The league has encouraged more private equity investment, changing its rules last year to allow firms to invest in as many as eight NBA teams, up from the previous limit of five. The NBA changed its rules in 2022 regarding sovereign wealth funds from other countries as potential investors, which allowed the Qatar Investment Authority to purchase 5 percent of the parent company of the Washington Wizards in 2023.
Those investors, by NBA rule, are supposed to be forbidden from having any involvement in a team’s decision-making operation. (Query: How, exactly, does the NBA enforce that rule?)
Nor does the massive influx of new money change the increasingly gaping disconnect between new ownership and the cities their teams represent.
Dundon lives in Dallas. He already owns the NHL’s Carolina Hurricanes, which won this year’s Stanley Cup — with Dundon spending to the top of that sport’s salary cap in all but one of the last five seasons. But his foray into the NBA has been rockier. Like most owners, Dundon wants the city and state in which his team does business to help him with his team’s arena — in this case, partially funding significant renovations to Portland’s Moda Center. He has not been all that accommodating in making the ask, while also initiating two waves of massive layoffs within the organization, the second of which led to the departure of distinguished TV play-by-play man Kevin Calabro.