It's official: Miriam Adelson to take over Dallas Mavericks
After intense speculation on Tuesday, Dr. Miriam Adelson and the Miriam Adelson Trust announced Wednesday that they have entered into a binding agreement to acquire the NBA's Dallas Mavericks )'s controlling interest.
On Tuesday, Las Vegas Sands (NYSE: LVS), the gaming company founded by Miriam's late husband, Sheldon Adelson, announced that she and her family's foundation would purchase the casino The operator's stock, worth $2 billion, is rumored to be for sale.
In a filing with the U.S. Securities and Exchange Commission (SEC), Sands said Adelson would use proceeds from the stock sale to fund the purchase of a controlling stake in an unidentified sports franchise.
Shortly after news of the stock sale broke, rumors swirled that the team was the Mavericks. The buyer confirmed this on Wednesday.
The Adelson and DuMont families have entered into a binding purchase agreement to acquire a controlling interest and the right to serve as governor of the Dallas Mavericks," a statement said.
Dumont was referring to LVS President and Chief Operating Officer Patrick Dumont and his family. He is Miriam Adelson's son-in-law. Pending approval from the NBA's Board of Governors, Adelson and the Dumont family are expected to take over majority control of the Mavericks from current owner Mark Cuban later this year. The "Shark Tank" star remains with the team and oversees basketball operations.
Adelson stock selling news affects Sands stock
Before news of the stock sale broke, Adelson and her family business controlled about 57% of LVS stock. That number will fall by about 10% as it funds the purchase of Mavericks stock.
Specifically, the stock sale is worth $2 billion, equivalent to 46.26 million shares. Sands said the offering was priced at $44, well below Tuesday's closing price of $47.66. As a result, the stock plunged 4.87% on Wednesday, with trading volume exceeding six times its average daily volume, extending its year-to-date losses to 5.68%. The gaming company announced on Tuesday that it would buy back up to $250 million in shares sold by Adelson.
It remains to be seen how involved the Adelson and DuMont families will be in basketball decisions. Still, they have enough financial resources to attract and retain some of the NBA's biggest stars.
Additionally, Patrick Dumont's investment banking background and previous role as Sands' chief financial officer (CFO) could help navigate the complex world of the NBA's salary cap, even if only on an interim basis.
Transaction sparks massive speculation
The clarity surrounding the Adelson/Mavericks trade has further fueled rumors of expanded gaming in Texas. Much of the discussion over the past 24 hours has focused on the possibility of casino resorts and sports betting coming to the second-largest state.
These are separate topics.Cuban has made it clear that he wants to work with Sands to develop a Dallas-area entertainment district flanked by casino hotels and the Mavericks' new arena.
Politicians must approve casino gambling before the issue goes before Texas voters, but they failed to do so during this year's legislative session.
When it comes to sports betting, Texas bettors shouldn't get their hopes up just because Sands Corp.'s largest shareholder is entering the state by acquiring the Mavericks. Under Sheldon Adelson and the current leadership regime, the operator has largely eschewed online sports betting and instead focused on its luxury land-based casino hotels.
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Source: www.casino.org
