Miriam Adelson Acquires Majority Stake in Dallas Mavericks as Las Vegas Sands Paves the Way for Pro Sports Team Purchase

Mark Cuban, the billionaire investor, is reportedly divesting a majority share of the Dallas Mavericks to Miriam Adelson and her family, as reported by CNBC. Despite the sale, Cuban retains ownership in the team and will continue to oversee its basketball operations.

Adelson is in the process of selling approximately $2 billion in Las Vegas Sands stock, representing about 10% of her ownership, as stated in an official announcement from the company. The funds generated from this sale are earmarked for the acquisition of a professional sports team, as outlined in the casino company's filing on Tuesday. It's worth noting that Adelson and her family currently hold the largest stake among shareholders in Las Vegas Sands.

“We have been advised by the Selling Stockholders that they currently intend to use the net proceeds from this offering, along with additional cash on hand, to fund the purchase of a majority interest in a professional sports franchise pursuant to a binding purchase agreement, subject to customary league approvals,” Las Vegas Sands said in the filing.

Las Vegas, having evolved into a prominent sports hub, has been the subject of speculation as a potential location for an NBA team. The WNBA's Aces already have a presence in the city, and it is noteworthy that Las Vegas is slated to host the concluding games of the NBA's midseason tournament.

Forbes ranks Adelson as the fifth wealthiest woman globally. She, along with her family, inherited a substantial 56% stake in the world's largest casino company following the passing of her spouse, Sheldon Adelson, the founder of Las Vegas Sands, in 2021. As of the close of the market on Tuesday, the shares held by the Adelson estates were assessed at a value exceeding $20 billion.

The year-to-date performance of LVS shares indicates a relatively stable trend, suggesting that investors may be cautious or discounting the anticipated reopening of casinos in Macao. Notably, Las Vegas Sands holds the largest real-estate footprint in the Macao market. This trend also extends to Singapore, another significant market for the company. The flat performance implies a measured approach by investors in assessing the potential impact of casino reopenings in these key locations.

In filings made on Tuesday, Las Vegas Sands revealed its intention to purchase $250 million worth of shares belonging to Adelson. This move follows the company's announcement during its third-quarter earnings call on October 18 of a $2 billion share repurchase authorization. However, the stock experienced a decline of over 4% in extended trading subsequent to the news of Adelson's share sale.

Patrick Dumont, the President and Chief Operating Officer of Sands and Miriam Adelson's son-in-law, articulated during the earnings call, "In contemplating our future capital return, we anticipate that share repurchases will carry more significant weight than dividends. Our belief is that repurchases will yield greater accretive benefits over time, as they contribute to reducing the denominator." Dumont emphasized the company's fundamental belief in the compounding long-term advantages associated with share repurchases.

Acquiring a sports franchise represents a notable departure from the endeavors that Miriam Adelson and her late husband were previously recognized for.

The couple established records in political contributions, notably contributing over $218 million to Republican and conservative causes during the sole 2020 election cycle, as reported by the Center for Responsive Politics, an organization that monitors political spending.

The quotes used in this piece were extracted from CNBC.