Cleveland Cavaliers owner Dan Gilbert may be looking to downsize.
The longtime Cavs owner Gilbert is looking to sell a stake in the franchise and has retained Allen & Company to explore selling up to 15 percent of the team, according to a report Thursday by Sportico. However, Gilbert would reportedly maintain his majority stake in the Cavs after any potential deal.
Sportico adds that Gilbert could end up selling the stake in either one parcel or to multiple individuals. You can read their full report on Gilbert’s situation here.
Gilbert purchased the Cavs in 2005 for a sum of $375 million, which was a then-record for an NBA team. Under Gilbert’s ownership, Cleveland won their first championship in franchise history in 2016 and also made five total appearances in the NBA Finals (though they admittedly did all of that on the back of LeBron James).
Also the co-founder and chairman of Rocket Mortgage, Gilbert is 63 years old now and has suffered some major health issues in recent years. Thus, it would make sense for him to cash out on part of his investment in the Cavs.
The current NBA landscape is also ripe for sellers. NBA franchise valuations are through the roof, in no small part due to the recent sale of the Los Angeles Lakers (one of the league’s banner franchises) for a ridiculous and record-shattering figure earlier this month. While the Cavs are a tier or two below that as a smaller-market team, they did just win 64 games and a division title this year, so it may indeed be wise for Gilbert to sell a stake in the franchise right now.
