How Mark Cuban Makes Money?

4 minute read · Issue Number 53 · January 29th, 2021

Jan 29, 2021

Welcome to another weekly edition of Sports-Tech Biz! Every Friday, we learn about intriguing topics related to sports, business, and technology. If you’re reading this online or in a forwarded email, sign up for the newsletter:

Dear legend,

Today’s article features part three (3/4) of the Sports Business Models Miniseries (SBMM), where we analyze four different business models (aka, how a business makes money) in the sports industry.

In case you missed out on the first two episodes of the SBMM, check them out:

Today, we’ll learn about Mark Cuban — a billionaire entrepreneur who’s widely known for his sports industry role. The fourth episode of the SBMM will be decided by you: the legendary reader behind this screen.

What sports brand do you find fascinating? What sports business model would you like me to cover next week? Let me know by answering this form.

Let’s get to Cuba(n)!

Mark Cuban

You may be familiar with Mark because of his appearances on TV shows such as Shark Tank and Dancing with The Stars.

Mark made his first millions in the early 90s by building a few technology companies, long before you and I even use the word ‘tech’ in our vocabulary.

His wealth creation kickoff business was Broadcast.com — a video portal network acquired by Yahoo for 5.7 billion USD in 1999.

Cuban’s knowledge and involvement in the tech industry helped him detect an incoming dot-com bubble and made brilliant investment decisions to protect and strengthen his wealth.

Mark Cuban x Sports

Cuban’s role in the sports industry began in January 2000, when he paid 285 million USD for a majority stake in the Dallas Mavericks (NBA team).

Since then, the Mavs have won an NBA championship and is worth over 2.4 billion USD.

"The key to success, in sports or business, is to be always learning and thinking how to apply those lessons to do better in the future."

Check out this fantastic short clip of Mark relating how the sports business differs from any other type of business:

Alternatively, Mark invests in over eight sports and sports-technology companies and start-ups, including Catapult Sports and Homecourt.

How Mark Cuban Makes Money?

Mark is one of the wealthiest people in America. He’s estimated to be worth about $4.2 billion.

For a personality at Mark Cuban’s level, it is quite evident that his business model is exceptionally diversified — meaning, he makes money from dozens of different sources.

From his investments, he earns money in two ways; his shares on the profits and appreciation of his investments' value.

Mainly from his investment in the Mavericks — where he is the sole owner — he takes the year-end profits plus the change in the franchise's value.

According to Forbes, the Mavericks can make profits of up to 21 million USD per year — which get Venmoed instantly to Mark’s pocket.

Additionally, remember he paid 285 million USD for the team in 2000? Today, the Mavs are worth over 2.4 billion.

His income from other investments works the same way.

In addition to his stake in the Dallas Mavericks— and due to his exposure to multiple companies in the Shark Tank — Mark has invested in over 80 companies in several sectors such as healthcare, AI, apparel, consumer & food, sports, and more.

During the COVID pandemic, Mark paid all the Mavs employees, participated in charitable acts, donated millions for healthcare workers, first responders, nonprofits, and other organizations helping combat the spread of the virus.

Besides learning about Mark Cuban’s business model — which is a product of his vision, ambition, and knowledge — I believe Mark is a leader and an example to society, and there’s so much to learn from him.

This was the third out of four (3/4) articles of the Sports Business Model Miniseries (SBMM)! Let me know what sports brand would you like me to write about next week by filling out this form.

QUICKIES

🎙Why is Israel the Sports-Tech Nation?; This week’s Halftime snack features Tomer Yehudayan — a lecturer and entrepreneur from Israel. We talked about Israel as a leading country in sports technology, how Tomer thinks of education and innovation, what Colosseum Sports is doing to create the future of sports, and more!

🚀Sports Tech Management Executive Program; Our Halftime Snacks guest runs the education activities at Colosseum Sports Innovation. Check out their most recent education programs for sports executives and professional players!

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