Dan Gilbert nearing sale of minority stake in Cavs

Cavaliers owner Dan Gilbert is reportedly nearing a deal to sell a minority stake in the franchise.

As relayed by Sportico’s Kurt Badenhausen, Gilbert is close to selling a 5-to-10 percent interest in both the Cavs and Cleveland’s future WNBA franchise to investment firm Blue Owl at a reported $5.5 billion valuation. Bloomberg first reported the agreement.

Gilbert would retain his controlling interest in the organization.

The reported valuation shows just how dramatically NBA franchise values have climbed. Gilbert purchased the Cavs in 2005 for a reported $375 million. Since then, the organization has captured its first NBA championship, undergone a major rebuild and emerged once again as an Eastern Conference contender.

Blue Owl has become increasingly active in professional sports ownership, with minority investments in several NBA franchises, including the Hawks, Hornets, Kings and Timberwolves. According to Badenhausen, the firm previously sold its stake in the Suns.

The reported deal comes just weeks after Gilbert addressed Cavs fans following the club’s Eastern Conference finals exit.

“We took a step ahead this spring, but we are nowhere near where we need to be,” Gilbert wrote on X. “We will dig in all summer and do everything we possibly can to take the next step. We will grind until we get there.”

At any rate, the potential sale has been in the works for some time. According to Sportico, Gilbert hired Allen & Company last year to explore selling up to a 15 percent stake in the franchise. Sportico valued the Cavaliers at $4.86 billion in December, making the reported $5.5 billion valuation another sign of the NBA’s soaring franchise values.

If completed, the transaction would represent another sign of the soaring value of NBA franchises while leaving Gilbert firmly in control of the Cavs’ basketball operations and long-term direction.

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