The Cleveland Cavaliers’ majority owner, Dan Gilbert, is exploring the sale of up to a 15% minority stake in the NBA franchise, according to multiple sources familiar with the matter. According to Sportico, Gilbert has retained Allen & Company, a prominent investment bank, to manage the process. The transaction could involve a single buyer or be divided among multiple investors, but Gilbert will maintain majority control of the organization.
Gilbert originally purchased the Cavaliers in 2005 for $375 million, a record sum for a standalone NBA franchise at the time. As of December 2024, Sportico valued the team at $3.95 billion, placing it 18th in the league. However, CNBC’s February 2025 valuations ranked the Cavs even higher at $4.35 billion, 15th among all NBA franchises. Based on these figures, selling a 15% stake could earn Gilbert approximately $652 million.
This move aligns with a broader trend of high-profile NBA franchise stake sales. The Boston Celtics recently sold a stake at an 8% premium to Sportico’s valuation of $6.1 billion, while the Los Angeles Lakers reached a deal valuing the team at $10 billion, a 24% premium over its estimated worth. League-wide, NBA team values have more than doubled in the past four years and surged by 1,100% over the past 15 years. The average team is now worth $4.6 billion as of December.
Despite the proposed sale, Cavaliers fans have little reason to be concerned. The sale would be limited to a minority stake, meaning Gilbert retains decision-making authority and control of team operations. Gilbert remains deeply rooted in Northeast Ohio through numerous business and civic ventures. His Rock Entertainment Group (REG) not only oversees the Cavaliers but also owns the AHL’s Cleveland Monsters, the G League’s Cleveland Charge, and operates Rocket Mortgage FieldHouse and Cleveland Clinic Courts.
