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.
Additionally, Gilbert is spearheading a major redevelopment project in downtown Cleveland. The Cleveland Clinic Global Peak Performance Center, expected to open in 2027, will serve as a cutting-edge training facility for the Cavaliers. The broader redevelopment plan includes 2,000 housing units, 850,000 square feet of office space, and expanded public and recreational amenities along the Cuyahoga River.
Gilbert is also actively involved in bringing a WNBA expansion team to Cleveland. Allen & Company, the same firm handling the Cavaliers stake sale, is representing him in this effort. REG confirmed in November its intent to bid for the 16th WNBA team, potentially restoring a professional women’s basketball presence in the city after the Cleveland Rockers folded.
On the court, the Cavaliers are coming off a historic season. Their 64-18 record marked the franchise’s second-best finish ever, including a 15-0 start, the best in team history. Led by First-Team All-NBA guard Donovan Mitchell and rising star Evan Mobley, the Cavs were eliminated in the Eastern Conference semifinals by the Indiana Pacers. Mitchell remains under contract through the 2026-27 season with a player option for 2027-28, while Mobley begins a five-year, $269 million extension next season, making the Cavaliers a luxury tax-paying team for the first time since 2017-18.
Under Dan Gilbert’s 20-year ownership, the Cavaliers have reached the NBA Finals five times and won their lone championship in 2016.
