Blue Owl Capital is in advanced talks to acquire a 5-10% minority stake in the Cleveland Cavaliers through its Dyal HomeCourt Partners fund.
The deal would value the Cavaliers and Cleveland’s incoming WNBA franchise at $5.5 billion. Dan Gilbert bought the Cavaliers for $375 million in 2005, which is worth $4.8 billion today. Twenty one years. Roughly a 13x return on the NBA franchise.
Between the $375 million purchase price and today’s $5.5 billion valuation sits Rock Entertainment Group, a business that now includes eight sports and entertainment properties, a media network, real estate around Rocket Arena that benefits from nearly 2 million annual visitors, a Cosm immersive entertainment venue, a Live Nation outdoor amphitheater, a hockey team, a WNBA franchise and a practice facility partnership with Cleveland Clinic.
The Cavaliers are still the headline asset, but they are the anchor for a much larger system.
365247 Sports is going inside Rock Entertainment Group, from its sports portfolio and real estate strategy to its long term bet on Cleveland and the wider business Dan Gilbert is building around the Cavaliers.