Hurricanes Owner Tom Dundon Has Deal to Buy Trail Blazers

The Portland Trail Blazers are being sold to a group led by Carolina Hurricanes owner Tom Dundon, the Hurricanes confirmed in a statement to Front Office Sports.

“We can confirm Tom Dundon is in the process of buying the Portland Trail Blazers and is excited about the opportunity,” a Hurricanes spokesperson said.

ESPN’s report that the team was sold at a valuation north of $4 billion is accurate, according to a source familiar with the matter.

The news of the deal was first reported by Sportico.

That valuation is higher than the most recent Forbes estimate of $3.5 billion for the Blazers, though it is a far cry from the records recently set by rival organizations. NBA team valuations have skyrocketed lately, as evidenced by the Lakers sale at a $10 billion valuation and the Celtics sale at a $6.1 billion valuation.

The buying group—which also includes Marc Zahr, co-president of asset manager Blue Owl Capital, and Portland-based Sheel Tyle, co-CEO of venture capital firm Collective Global—intends to keep the team in Portland, the source confirms.

In July, NBA commissioner Adam Silver said at a press conference, “It is our preference that that team remains in Portland,” and noted the team “likely needs a new arena, so that will be part of the challenge for any new ownership group coming in.” 

The Blazers have played in the Moda Center since 1995. It was supposed to be upgraded ahead of hosting the 2030 women’s Final Four, but those plans are reportedly on hold until the team is sold.

The estate of Paul G. Allen put the Blazers up for sale in May, hiring Allen & Company and law firm Hogan Lovells as financial and legal advisers, respectively.

The sale of the Blazers is in line with the wishes of the late Microsoft cofounder Paul Allen, who bought the Blazers for $70 million in 1988 and died in 2018. Since then, Jody Allen has served as her late brother’s executor and trustee of his estate. She has been the chair of both the Blazers and NFL’s Seahawks during that span. 

The Seahawks and Allen’s 25% stake in the Seattle Sounders MLS club—the other pro teams Paul Allen requested be posthumously sold—were not put up for sale. Representatives for the NBA and Allen & Co. declined to comment. A representative for the Blazers did not immediately respond to a request for comment.

Dundon is a major player in U.S. pro sports. In addition to the Hurricanes—which in 2018 he bought a majority stake in before taking over the team in its entirety in 2021—he leads investment firms Dundon Capital Partners and Southpaw Capital Partners. He also has a number of other major sports holdings, including a significant investment in Topgolf Callaway Brands and is among the owners of Major League Pickleball.

He was also a backer of the short-lived Alliance of American Football and has become embroiled in controversy over the league’s bankruptcy. There have been two lawsuits filed in the wake of the AAF bankruptcy, one of which was against Dundon. It alleges he fraudulently bought the league in February 2019 from the founder with a pledge to invest $250 million that he had no intention of spending. Instead, the trustee alleges in court filings, Dundon wanted a tax credit to offset gains elsewhere in his portfolio and bought the league to kill it.

Dundon in turn has sued Charlie Ebersol, the AAF cofounder and son of legendary NBC executive Dick Ebersol. The AAF needed a cash infusion in February 2019 when Reggie Fowler abruptly pulled out—he was the league’s main investor who had pledged $50 million plus a $120 million line of credit. Dundon claims Ebersol fraudulently induced him to buy the floundering league and the AAF was a financial basket case.

Those suits are still ongoing.