Tom Dundon made headlines in March when his group’s $4 billion purchase of the Portland Trail Blazers was approved by the NBA. In the months since, his tenure has tarnished the organization’s standing in Portland and shed an ominous light on the future of pro sports ownership.
Dundon’s cost-cutting measures since taking over as the Trail Blazers’ owner have been well-documented, but it’s worth first revisiting the billionaire’s history and the signs that should’ve indicated this was coming.
Related: Portland Trail Blazers Exec Takes Shot at City, Fuels Relocation Fears
Tom Dundon’s History in Subprime Loans and Private Equity
Dundon, 54, was the co-founder of the subprime lender Drive Financial Services and eventually became chairman and CEO of Santander Consumer USA after the lending company was acquired. During his tenure, a coalition of 34 attorneys general looked into the company for deceptive lending practices beginning in 2015, an investigation that ultimately resulted in a $550 million settlement in May 2020.
Dundon later founded Dundon Capital Partners, basing the private equity investment firm in Dallas, Texas. Among the companies DCP invested in was Exeter Finance, an auto finance company. In 2019, with Dundon still in a leadership role, Exeter was investigated by multiple attorneys general for predatory lending practices, an inquiry that eventually led to multimillion-dollar settlements with Massachusetts and Delaware.
He purchased a majority stake in the NHL’s Carolina Hurricanes in early 2018 before eventually becoming sole owner in 2021. During his tenure, the franchise underwent many of the cost-cutting measures now being experienced in Portland.
After nearly four decades with the team, Hall of Fame radio play-by-play announcer Chuck Kaiton was essentially let go by Dundon’s Hurricanes, and longtime television voice John Forslund left two years later after below-market contract offers. The franchise moved forward with a television broadcast simulcast on the radio to trim costs.
The cost-cutting measures also extended to the Hurricanes coaching staff. Under Dundon, Carolina maintains one of the lowest-paid coaching groups in the NHL. The franchise can make it work largely because head coach Rod Brind’Amour, a franchise icon who played a decade with the team, has been willing to work on a below-market contract.
In addition, Dundon’s penchant for being tight with his spending extends to the front office. Dundon had Don Waddell serving as both president and general manager before his resignation in May 2024. The analytics-driven front office is also one of the smallest in hockey.
The Hurricanes did win the Stanley Cup this season, capping off a four-series Stanley Cup playoffs run where they posted a 16-3 record. However, the NHL is a very different beast than the NBA when it comes to running a consistent and competitive franchise.
Working Fast to Break Things in Portland
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Dundon wasted no time in finding ways to cut costs in Portland. As the team prepared for the NBA play-in tournament and the city grew excited for the Moda Center to potentially host playoff games for the first time since June 3, 2021, the Trail Blazers’ owner focused on saving himself some money.
As first reported by Chris Mannix of Sports Illustrated, Blazers staffers had to hang out in the hotel lobby because Dundon required all of them to check out of their rooms before he was charged for late checkouts. That meant those staffers had to hang around in the hotel for hours before the team’s play-in game against the Phoenix Suns.
The Trail Blazers beat the Suns, securing a first-round playoff series and home playoff games against the San Antonio Spurs. It provided Dundon with another chance to save a few hundred thousand dollars.
As ESPN reported back in April, the Trail Blazers were the only team not to send their two-way players to San Antonio for Games 1 and 2 of the series. Portland also reduced the size of its traveling staff, refusing to pay for the costs of its team photographer and digital reporter to make the trips to Phoenix or San Antonio.
When the Trail Blazers returned home, fresh off a Game 2 upset over the Spurs, Dundon scrapped the tradition of color-coordinated T-shirts being provided for the fans who bought tickets to support the team at the Moda Center for Game 3. Instead, the club provided a cheaper alternative with branded rally towels.
Dundon found more opportunities to save money once the season was over. The Trail Blazers’ coaching search was defined by its tight budget, with it being made clear that the team’s next coach would be the lowest-paid in the NBA. Dundon reportedly didn’t want to pay his head coach more than $1.5 million, the same salary top assistants make. When the team finally settled on Micah Nori as its new head coach, the organization received widespread criticism for the ‘slap in the face‘ contract that only guarantees Nori one year with the second and third years of the contract being team options.
Others within the organization have been more dramatically impacted by Dundon’s cost-cutting measures. The Trail Blazers laid off more than 70 employees after the season. Among those who won’t be returning are beloved TV voice Kevin Calabro and radio play-by-play voice Travis Demers. Following Demers’ departure from the organization, it was revealed that Dundon’s new contract offer to him included a 60-plus percent pay cut, with no benefits, no analysts, and no covered travel costs.
The city and its taxpayers are also realizing the lengths Dundon will go to save money. As city officials try to negotiate a long-term lease and how to cover the costs of stadium renovations for the Moda Center, Dundon has made it clear he has no intention of footing the bill for any of the renovations.
“The other thing you need to know is that Tom Dundon is not interested, by his own words, in giving any money for this renovation…Tom Dundon is not someone to be trifled with. He has no problem being blunt, no problem being unpopular, and has no connection to the city of Portland. It is a recipe for relocation. It’s just not something that is going to be very clearly defined right now.”
ESPN NBA insider Brian Windhorst on NBA Today regarding Portland Trail Blazers owner Tom Dundon
When someone shows you who they are, believe them. Dundon’s actions since acquiring the Trail Blazers have demonstrated his desire to cut costs everywhere he can. While he can claim that his focus is on winning and putting the best product on the court possible, his approach is direct evidence that the Trail Blazers won’t push the envelope on player payroll at a time when the NBA’s second apron carries such harsh financial and team-building penalties for teams that exceed it.
Unfortunately for sports fans, Dundon is probably just the beginning. As the saying goes, the first guy through the wall always gets bloody. Dundon is taking that hit right now, publicly opening the door for his peers to take the same measures without as much scrutiny because it will become more normalized.
The Future of Pro Sports Ownership and Private Equity Groups
With franchise values for pro teams skyrocketing like never before, as seen in the NBA with both the Los Angeles Lakers ($10 billion valuation) and in the NFL with the Seattle Seahawks ($9.612 billion), only a select few can even afford to get involved. So, team owners and commissioners found a solution.
In 2024, NFL owners voted to allow private equity funds to buy up to a 10 percent stake in a team as long as the controlling owner owns 30 percent. Before long, the rules will be changed further so that those with ambitions of owning an NFL franchise can receive more liquidity from private equity firms in exchange for a greater ownership stake. As for the NBA, its owners voted in December 2025 to allow private equity groups to hold stakes in as many as eight different teams.
The very goal of private equity firms is to cut costs wherever possible, reducing staff and finding cheaper alternatives to lower expenses. That, in turn, increases revenue and makes the entity they invest in more valuable so stakeholders can exit later at a profit.
There are examples of this in every industry. Private equity funds have come for healthcare, youth sports, food production, media, housing, senior living, veterinary care, public utilities, local trades, and cable and streaming entertainment. Each time the result is the same; jobs are lost, services and products get worse and the financial bottom line improves for the firms behind it.
Unfortunately, Dundon is just the first to take it to this extreme. Pro sports franchises are essentially viewed as machines for making even more money. Athletes and owners will be the ones to cash in on it, while the fans witness another thing they love stripped away and sold to them at an even higher cost.
Matt Johnson is Senior Editor of NFL and College Football for Sportsnaut. His work, including weekly NFL and college … More about Matt Johnson