Mavericks' Mark Cuban gets brutally honest on decision behind ownership sale

Mark Cuban knew he had to sell his majority stake on the Mavericks to put them in a better position to succeed financially long-term.

By now, everyone has heard the reason why Mark Cuban sold his majority stake on the Dallas Mavericks to Miriam Adelson, one of the richest women in the world. Considering the real estate and casino background of the Adelsons, Cuban knew that a partnership with them can hopefully help the Mavs find new ways to earn revenue.

It's also worth noting that Cuban will still run the basketball operations of the Mavericks, which is part of his deal in the sale. The Adelsons, for their part, will be more involved on the business end.

In a recent interview on “What Now? with Trevor Noah,” Cuban shared more details on the Mavericks sale and clarified that he still owns a stake on the team. With that being said, he highlighted that selling his majority stake of the franchise was fueled by the evolving sports landscape and how teams earn revenue today.

“Right. So I still have 27 percent, and I'll still run basketball operations,” Cuban said. “But the reality is, sports evolve. And when I first got in 2000, technology and media were really the driving factors for revenue. And I was good at those things. I'm good at those things, right? And so I had a good competitive advantage and I was able to generate revenue. Now that's changing. You know, the media, as you know better than anybody, right? Media has changed dramatically.”

Cuban added, “The incumbent companies [are] no longer in the position of strength that they once were. Revenue scenarios are changing dramatically. And that change has meant that in order to be a leading revenue-generating team, which pays for those salaries, you have to be in real estate, you have to be in entertainment centers, and potentially casinos, and those are things I don’t have the slightest clue in.”

What Mark Cuban said definitely makes sense. While the league and teams still earn a lot from TV and broadcasting deals, the fact of the matter is there are plenty of bigger opportunities out there to earn revenue and keep teams more sustainable and profitable.

Of course it remains to be seen how the new ownership will change things for the Mavericks, though there is reason to believe it could only help the team grow further.