In what is poised to reshape the business landscape of the gaming and sports industries, a significant financial maneuver is unfolding as the Adelson family undertakes the sale of a substantial block of shares in the renowned Las Vegas Sands Corporation. The transaction, which amounts to approximately 10% of the family’s total holdings in the company, will see 41,186,161 shares sold at $48.56 each—mirroring the closing price of Sands’ common shares on November 27.
This decision will decrease the Adelson family’s commanding share in Sands from about 56.4% to an estimated 46.0%, yet they will maintain their majority stake in the company. Out of the shares being sold, 6,480,883 are owned directly by Miriam Adelson, and the Miriam Adelson Trust is parting with all of its 34,705,279 shares. Post-sale, Miriam Adelson will continue to hold onto 386,707,968 shares of the company.
Moreover, Sands is looking to reacquire a portion of its stock, proposing to repurchase up to $250.0 million worth of shares at the same price as those being publicly offered. This repurchase plan is set to remain active until November 3, 2025.
Remarkably, all the proceeds from this sale will go directly to the Adelson family, as Sands itself will not benefit financially from the event. The objective behind this large-scale disposal of assets is to fund the acquisition of a majority interest in a professional sports franchise, augmenting existing cash reserves.
While the identity of the sports franchise remains officially undisclosed, there is speculation fueled by media outlets, including The Athletic, that the focus of Adelson’s investment appetite is the Dallas Mavericks, an illustrious NBA basketball team. Reports estimate a sale value of about $3.5 billion, with Adelson expected to gain majority control of the franchise.
Any transaction of this magnitude concerning a sports team is subject to formal purchase agreements and must receive approvals from the relevant sports league, ensuring due diligence and compliance with customary regulations.
Adding another layer to this complex transaction is the possibility that Mark Cuban, the current owner, may retain a minority share in the Mavericks while maintaining full control over basketball operations. This atypical situation often signals sophisticated negotiations where both patronage and operational command are meticulously balanced.
Miriam Adelson’s association with Las Vegas Sands has been enduring and influential. Since February 2021, following the passing of her husband Sheldon Adelson a month earlier, she has served as a co-founder and special advisor. Sheldon Adelson, who succumbed to complications from non-Hodgkin’s lymphoma at the age of 87, had announced his diagnosis and treatment commencement in March 2019.
During Sheldon Adelson’s final days, he took a leave of absence, leading to Robert Goldstein stepping up as chairman and CEO. Under Goldstein’s guidance, Las Vegas Sands has preserved its stature in the gaming industry, carrying on the legacy of its visionary founder.
The story of Sheldon Adelson and Las Vegas Sands is one of remarkable industry influence, stretching from the purchase and reinvention of Las Vegas’ Sands Casino in 1988 to pioneering endeavors in Asia, most notably in Macau. Following Macau’s opening to legalized gambling, Sands established its presence with the construction of Sands Macau in 2004, followed by the iconic Venetian Macau and other resorts, cementing the company’s international clout. Moreover, expanding its reach to Singapore with Marina Bay Sands in 2010 and stepping into Pennsylvania’s gaming scene are testaments to the company’s ambitions.
Las Vegas Sands has recently shown resilience and growth in its financial returns, with notable increases in revenue and profits following the relaxation of COVID-19 restrictions, particularly in its strongholds of Macau and Singapore. This performance reflects the solid foundations laid down by its founder and the strategic steering by its current leadership.
With Sheldon Adelson’s estimated net worth placed by Forbes at $35.8 billion in 2020, and his legacy including milestones such as being listed among the world’s richest individuals, the shift towards investment in the NBA is a continuation of his family’s impactful engagement in high-stakes business ventures. The unfolding sale of shares in Sands to pursue an unprecedented venture in professional sports marks yet another bold chapter in the illustrious Adelson saga.
