Portland Trail Blazers’ New Ownership Faces Scrutiny

Whenever a team is under new ownership, there tends to be a period of adjustment. The Portland Trail Blazers are currently navigating a rather unusual normal characterized by austerity measures. Tom Dundon, who recently completed his purchase of the team, has faced criticism for cutting costs in ways that some view as unnecessary.

This week, debate surrounding Dundon’s management practices intensified due to reports from Sean Hikin of the Rose Garden Report. One report highlighted Dundon’s unusual decision to prevent the Blazers’ two-way players from traveling to playoff games, making Portland the only NBA team to enforce such a rule. While these players don’t participate in the games, their presence is valuable for team cohesion and mental support. Hikin noted this decision is particularly insulting, considering these players aided the team’s return to the playoffs for the first time in five years.

“[Caleb] Love and Sidi Sissoko helped the Blazers get through that stretch of the season, going above and beyond the playing time and production that a playoff-bound team would normally expect from a two-way player.”

It’s understandable that a new owner might hesitate to spend significantly on a franchise, but these cost-cutting measures could jeopardize the Trail Blazers’ future. Reports indicate that interim head coach Tiago Splitter is hesitant to sign a long-term deal. He took the helm in October when Chauncey Billups was involved in a federal investigation, leading the team to a 42-40 record—the franchise’s first winning season since 2020-21. While he has clearly connected with the players, failing to offer him a fair salary could result in the Blazers losing a key asset.

Tom Dundon’s Financial Approach

It’s a tricky topic when discussing billionaires, but Dundon is often viewed as one of the lesser owners in the NBA. Forbes estimates his net worth at around $2.3 billion, which raises questions about his spending habits.

Dundon’s history with the NHL’s Carolina Hurricanes, which he bought in 2017, sheds light on his management style. Known for conservative investments, his past actions reveal a pattern of initial frugality followed by increased spending once success is proven.

Initially, he made his wealth by creating a subprime car financing company in Dallas, which allowed him to amass considerable assets after selling it in 2006. He has since diversified his investments across various industries, notably gaining significant wealth from Topgolf.

When he acquired a majority stake in the Hurricanes for $430 million, he made it clear his intent to keep the team in Raleigh, amid relocation worries. Before his ownership, the Hurricanes were known for mid-tier spending, and he strategically slimmed down their budget leading up to the sale.

In his first two years, the Hurricanes had one of the lowest payrolls in the league, similar to current concerns with the Trail Blazers. However, this period allowed him to revitalize the franchise by either letting go of most of the management or changing their roles, focusing on a team that emphasized analytical strategies.

Dundon’s strategy, while frugal, had a clear direction. He hired people like general manager Don Waddell, who has deep experience in the sport, and head coach Ron Brind’Amour, who was already a familiar face in the organization.

However, both were brought in under “prove it” contracts due to Dundon’s cautious financial approach. Their performance allowed for a gradual increase in spending, resulting in the Hurricanes becoming one of the league’s biggest spenders by the 2018-19 season and experiencing significant success since.

Now, the Carolina Hurricanes have enjoyed consecutive playoff appearances and have become a model of stability and performance. They’ve also secured big-name players with long-term contracts and are considered contenders in their league.

Nevertheless, Dundon’s slow and steady strategy in the NHL doesn’t necessarily translate to the NBA, where financial dynamics are quite different. The highest-paid player on the Hurricanes earns just over $9 million compared to NBA salaries, which can climb into the tens of millions swiftly. The financial frameworks just don’t compare.

It seems Dundon is applying the same clinic of cost control with the Blazers, which comes across as unrefined and lacking understanding of the NBA’s wider culture. His reluctance to invest in crucial areas, like coaching salaries or player development, could prove detrimental.

Ultimately, it’s hard to find a quality basketball coach willing to accept a lowball offer, and it’s likely that Dundon will need to adjust his expectations and investment approach. While it’s been demonstrated that he can be a supportive owner when he sees returns, it raises the question of whether he will loosen the purse strings enough to allow this team to succeed. Success in the NBA often means attaining a winning record and making the playoffs, but that’s unlikely to happen without sufficient funds.

The situation with the Blazers presents a gamble: Either Dundon commits fully to developing the team or he may undermine the progress made last season. Only time will tell how this plays out.