Cleveland Cavaliers owner Dan Gilbert, who has been at the helm since 2005, is reportedly considering selling a portion of his stake in the franchise. According to Sportico, Gilbert has brought on Allen & Company to potentially facilitate the sale of up to 15 percent of the Cavs. Despite this possible transaction, Gilbert plans to maintain his majority control of the team.
There’s flexibility in the potential sale, as Gilbert might opt to sell the stake to a single buyer or distribute it among several interested parties. This represents a significant moment for the Cavaliers, given the journey they’ve been on since Gilbert’s acquisition for a then-record $375 million. Under his ownership, the Cavs reached the pinnacle of the NBA in 2016, capturing their first championship, largely powered by the talents of LeBron James. In total, the franchise made five NBA Finals appearances during Gilbert’s tenure so far.
Gilbert, who is also the co-founder and chairman of Rocket Mortgage, is currently 63 years old. His recent health challenges may be influencing his decision to offload part of his investment. Furthermore, with current NBA franchise valuations soaring—highlighted by the record-breaking sale of the Los Angeles Lakers this month—the market is highly favorable for sellers. Although the Cavaliers might not match the glamour of the Lakers, they demonstrated their competitive prowess by securing 64 wins and a division title this season. This combination of personal and market-driven factors could make it an opportune time for Gilbert to evaluate his holdings in the Cavs, while still retaining control over the franchise’s future.
