Blue Owl Capital Inc., through its Dyal HomeCourt Partners fund, is in advanced discussions to purchase a minority stake in the NBA's Cleveland Cavaliers. This transaction is anticipated to involve a 5% to 10% stake in the franchise. The deal values the Cavaliers and the upcoming Cleveland WNBA team, set to begin play in 2028, at a combined $5.5 billion.
Previous reporting by Bloomberg indicated these advanced talks, and Blue Owl's Dyal HomeCourt Partners fund has a history of acquiring stakes in other NBA teams, including the Atlanta Hawks, Sacramento Kings, and Minnesota Timberwolves. Cavaliers owner Dan Gilbert, who bought the team in 2005 for $375 million, had been exploring the sale of up to 15% of his NBA franchise since last summer, retaining Allen & Company for this purpose. Despite the sale of a minority stake, Gilbert will maintain his majority ownership.
According to Sportico's December valuations, the Cavaliers were valued at $4.86 billion, ranking 16th in the league. This potential deal reflects a significant increase in NBA team values, which have more than doubled over the past four years and surged 1,300% over the past 15 years, reaching an average of $5.51 billion. The Cavaliers recently made an Eastern Conference finals appearance, their first without LeBron James since 1992, and had the second-best regular season record in franchise history the previous year at 64-18. Their current roster is the NBA's most expensive, with a payroll of $217 million and a luxury tax of approximately $67 million. Looking ahead, the team has Donovan Mitchell ($50.1 million) and Evan Mobley ($50.1 million) on the books for next year, alongside a $42.3 million player option for James Harden.
