The Cleveland Cavaliers are nearing a deal to sell a 5% to 10% stake in the NBA franchise to private equity firm Blue Owl. The deal values the NBA team and Cleveland WNBA team set to start play in 2028 at a combined $5.5 billion, according to someone familiar with the agreement.
Blue Owl’s sports strategy fund buys limited partner stakes in NBA franchises, a fund originally named Dyal HomeCourt. The fund already has stakes in the Atlanta Hawks, Charlotte Hornets, Minnesota Timberwolves and Sacramento Kings.
The Cavaliers declined to comment on the deal, while Blue Owl did not return a request to comment. Bloomberg was the first to report the stake sale.
Last year, Cavaliers owner Dan Gilbert hired Allen & Company to explore selling up to 15% of his NBA franchise. Gilbert will retain his majority stake in the team he bought in 2005 for $375 million, which was a record at the time for a standalone NBA franchise. In December, Sportico valued the Cavs at $4.86 billion in its NBA team valuations, which ranks 16th in the league.
NBA values have more than doubled over the past four years—and are up 1,300% over the past 15 years—to an average of $5.51 billion. Last year, the Boston Celtics ($6.1 billion) and Los Angeles Lakers ($10 billion) reached agreements to sell their franchises, with both deals at the time setting records for a sports team control sale price.
