Analyst Urges Tom Dundon to Sell Trail Blazers as Portland Lease Vote Passes 8-4

Q: If the Allen estate still holds a stake, can Dundon legally flip the franchise before his purchase is complete?

Not cleanly. If Tom Dundon’s purchase of the Trail Blazers is not fully closed and the Allen estate still retains 20%, he generally cannot simply “flip” the entire franchise as if he already owns 100% outright. In practice, any resale before completion would depend on the exact purchase agreement. Dundon could potentially try to assign or restructure his contractual rights, but that is very different from freely selling the team. Most deals of this size contain transfer restrictions, consent requirements, and closing conditions. If the second phase of the Blazers sale has not closed, the Allen estate likely still controls part of what would need to be sold, and its approval would matter. There is also the NBA layer. A controlling sale of an NBA franchise requires approval by the league’s Board of Governors, and that process can take weeks or longer. The recent Lakers transactions cited in the reporting underline that even when a buyer and seller agree, league approval is still required before a deal is final. So the legal answer is that Dundon may be able to explore an exit, but not as a simple, unilateral flip of the whole franchise before his own acquisition is complete. He would likely need the Allen estate’s cooperation, satisfaction of the original sale terms, and NBA approval of any new controlling-owner transaction. That is why a Blazers resale remains possible in theory but complicated in law and structure.

3 articles · Updated · OregonLive · Aug 12

One year after Dundon was identified as the Trail Blazers' buyer, an analyst argued he should cash out rather than keep battling Portland over the franchise's future.
An 8-4 City Council vote approving a lease-negotiation term sheet sharpened that case by adding millions in annual rent and other provisions that move the city further from terms the Blazers have already called a non-starter.
The column says Dundon's tenure has been marked by backlash over cost-cutting, political warfare over arena demands and fears he is exploring relocation options; Councilor Dan Ryan said he has seen enough to believe Dundon is "actively pursuing options elsewhere."
Mark Walter's reported 20% profit on the Lakers after less than 10 months of ownership was cited as fresh precedent for a quick franchise flip, implying Dundon could potentially exit at a gain.
Any sale would still face hurdles, including the Allen Estate's 20% stake, the unfinished second phase of Dundon's purchase and the challenge of finding a buyer more committed to keeping the team in Portland.