Dundon, a Dallas-based businessman, steps to the forefront as the principal buyer, and is joined by investor Marc Zahr, co-president of Blue Owl Capital, and Sheel Tyle, a Portland-based venture capitalist whose local ties reassure fans concerned about the franchise’s future. Dundon’s sports credentials include his successful turnaround of the Carolina Hurricanes, where he guided the franchise from drought to consistent playoff contention following his 2018 purchase for about $420 million.

Dundon confirmed the sale while declining to comment on the exact transaction value, saying he was “very excited.”

Sale process and historic context

The estate of billionaire Paul Allen announced the Blazers were formally up for sale in May, acting on directives from the late Microsoft co-founder, who acquired the team in 1988 for just $70 million. Allen’s trust, guided by his sister Jody Allen, presided over the Blazers while evaluating prospective buyers, ultimately rebuffing a $2.2 billion offer from Nike co-founder Phil Knight as recently as 2022. This pushed the Trail Blazers’ worth up, with this sale settling at a reported $4.25 billion.

Crucially, Dundon and his group have assured the city and NBA fans that Trail Blazers will remain in Portland, putting to rest years of speculation about a possible relocation. The sale includes none of the estate’s other sports assets: control of the NFL’s Seattle Seahawks and a 25% stake in the Major League Soccer Franchise, the Seattle Sounders.

Oregon Sen. Ron Wyden said he had just fielded a call from Dundon while talking to reporters during a visit to the Oregon Food Bank on Wednesday. He said Dundon sounded “very excited about the team’s future being here in beautiful Portland.” The team’s home, the Moda Center, was sold to the city in 2024 for $1 plus $7 million for the land, paving the way for a public-private partnership aimed at renovating the arena and ensuring the Blazers’ lease runs through 2030, with a five-year extension available.

Local impact and philanthropy

With Oregon still lacking NFL, MLB, or NHL franchises, the Blazers remain a cultural pillar for the region. Proceeds from the sale will support philanthropic endeavors as outlined in Paul Allen’s will, though full details remain forthcoming.

Dundon’s investment group is known for leveraging entertainment-district developments around professional sports venues, prompting hope in Portland for economic revitalization of the Rose Quarter and beyond. Meanwhile, local leaders and the grassroots “Rip City Forever” movement are calling for continued public-private partnerships to extend the Blazers’ impact into the future.

The Blazers’ deal is the latest in a series of high-value NBA sales, following the Boston Celtics’ recent $6.1 billion agreement and the Los Angeles Lakers’ sale for roughly $10 billion.

“The value of sports teams and related assets has seen exploding growth in recent years,” Mike Rueda, the head of U.S. sports and entertainment at global law firm Withers, said in a statement to Fortune. This is driven by factors including lucrative media rights deals, increased global popularity, and significant investment in infrastructure, he added. Teams are being valued at billions of dollars as a result, creating a real incentive for existing owners to sell. He said “it’s no surprise” that we are seeing legacy owners sell now to capitalize on these blockbuster valuations and, at least in part, for estate planning considerations.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.