[Horney] Mavs Owner Patrick Dumont Hits Back at Mark Cuban in Arena Fight | Dumont says Cuban is demanding a role in a deal that does not yet constitute a “business opportunity.”
Ben Horney:
Dumont over a potential new Mavericks arena site is heating up, with Dumont now arguing that Cuban is demanding involvement in a deal that does not yet even constitute a “business opportunity.”
Cuban filed a petition in Texas state court last month aimed at obtaining information he claims could show that Dumont unlawfully cut him out of opportunities after he sold his majority stake to Dumont and the Adelson family in 2023. Cuban’s rule 202 petition, which was heavily redacted, said Dumont had an obligation to keep Cuban apprised of the potential purchase of about 104 acres at the former Valley View Mall site in Dallas, which the Mavs announced as a possibility in June.
According to Cuban, Dumont did not notify him of the Valley View Mall opportunity. Further, Cuban said Dumont formed a company called Arena Development Intermediate (ADI) to pursue the arena, and incorporated it in Delaware to avoid having to make public disclosures.
Dumont hit back in a July 31 legal filing that is also heavily redacted. His filing removed the case from Texas state court to Texas business court. It says ADI has not yet exercised its option to purchase the property.
“Nevertheless, Mr. Cuban has demanded that he be involved in the option process,” the filing says. “Because of the nature of the Valley View Option, there is no current business opportunity to present to Mr. Cuban or petitioners. This fact has been communicated to Mr. Cuban.”
Cuban’s legal team already sought to remand the case back to Texas state court where he originally filed, but a business court judge denied that request on Wednesday. On Thursday, Dumont argued to the business court that Cuban must privately arbitrate the dispute. According to Dumont, Cuban’s limited partnership agreement contains a “broad” provision requiring matters like this be arbitrated. He says Cuban filed his petition against ADI, rather than Dallas Basketball Ltd. (operator of the Mavs) or Radical Arena Ltd. (operator of the American Airlines Center) in order to “avoid the valid and enforceable arbitration provisions. They cannot do so.”
Dumont also takes issue with the press resulting from Cuban’s initial filing in Texas state court. He says Cuban’s filing “generated widespread media coverage, contrary to the parties’ agreement to arbitrate disputes privately and confidentially.”
Cuban’s complaint over Dumont’s alleged pursuit of an arena site without informing Cuban is just the latest salvo in escalating tension between the former Mavs majority owner and the family he sold to in 2023.
In March, Cuban told the Intersections podcast, “I regret who I sold to. I made a lot of mistakes in the process, and I’ll leave it at that.” In April, Cuban told Front Office Sports he was approached by a group looking to buy back the Mavs and he was interested: “I was like, ‘Look, if you can get them to sell, I would be more than happy to contribute my equity, et cetera, et cetera, and help.’ But I didn’t expect that to materialize. I told them I didn’t think it would happen, that I didn’t think the Adelsons had any interest in selling. And they don’t.”
Cuban declined to comment Friday. Attorneys for Dumont did not immediately respond to requests for comment.