NBA approves Trail Blazers sale to Tom Dundon-led group for $4 billion

The Portland Trail Blazers have officially entered a new era. The NBA board of governors approved the sale of controlling interest in the franchise from Paul Allen’s estate to a group led by investor Tom Dundon on Monday, marking the end of more than three decades under Allen’s ownership.

The league confirmed in a statement that the deal is expected to close this week. ESPN previously reported the transaction value at $4 billion, though this falls short of the record-setting $6.1 billion sale of the Boston Celtics in March.

A diverse ownership group takes control

Dundon’s investment group brings together several prominent business figures. The consortium includes Portland-based Sheel Tyle, co-founder of investment firm Collective Global, Marc Zahr, co-president of Blue Owl Capital, and the Cherng Family Trust, the family office of Panda Express co-founders.

The new majority owner brings significant sports franchise experience to Portland. Dundon, chairman and managing partner of Dallas-based Dundon Capital Partners, has been involved with the NHL’s Carolina Hurricanes since purchasing a stake in 2017. He became majority owner in 2018 and took sole possession in 2021. Earlier this month, he sold a 12.5% stake in the Hurricanes to three new minority owners for a reported $332.5 million.

Securing the franchise’s Portland future

The ownership transition comes at a crucial time for the franchise’s long-term stability in Portland. The Oregon Legislature approved funding for Moda Center renovations in early March, providing $365 million for the 30-year-old arena’s upgrade. The measure gives the state joint ownership of the facility with the city and effectively eliminated concerns about potential relocation under new ownership.

Paul Allen’s estate announced the sale process in May, fulfilling the late Microsoft co-founder’s wishes outlined in his will. Allen, who died in 2018 at age 65 from complications of non-Hodgkin lymphoma, originally purchased the Trail Blazers in 1988 for $70 million. His will stipulated the eventual sale of his sports properties, with proceeds directed toward philanthropic endeavors.

Since Allen’s death, his sister Jody Allen has served as chair of both the Trail Blazers and NFL’s Seattle Seahawks while acting as trustee of the Paul G. Allen Trust. The estate also announced plans to sell the Seahawks in mid-February, continuing the systematic divestiture of Allen’s sports empire.