Scrutiny Surrounds Tom Dundon's Purchase of the Portland Trail Blazers

Oregon is preparing to invest approximately $365 million in renovations for the Portland Trail Blazers' arena, the Moda Center, as part of an $870 million public funding package aimed at retaining the team. This financial commitment comes as billionaire Tom Dundon is set to finalize his purchase of the Blazers for $4.25 billion, with the sale expected to close by March 31, 2023. Dundon, currently the owner of the NHL's Carolina Hurricanes, faces scrutiny over his previous role as CEO of Santander Consumer USA, which was implicated in predatory lending practices that led to a $550 million settlement involving Oregon and other states.

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Internal emails from 2013 reveal that Dundon advocated for waiving proof-of-income requirements for auto loans, a move criticized for increasing the risk of borrowers defaulting. Oregon Attorney General Dan Rayfield emphasized the importance of such requirements, stating, "When those guardrails get waived, dealerships win in the short term, and consumers lose." The allegations against Dundon have resurfaced as state officials push for taxpayer protections amid the significant public investment in the Blazers' arena.

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As Dundon prepares to take over the Blazers, speculation about his management style is prevalent among team employees. Acting head coach Tiago Splitter acknowledged the anticipation of changes, stating, "There's definitely something in the air of the change." Dundon's previous ownership of the Hurricanes provides a reference point for what Blazers fans and staff might expect, although the differences between the NHL and NBA, as well as the distinct cultures of Raleigh, North Carolina, and Portland, Oregon, complicate direct comparisons.

What Kind of Owner Will Tom Dundon Be for the Trail Blazers? His Management of the Carolina Hurricanes Could Tell Us

Critics of Dundon's impending ownership highlight the potential risks associated with his past business practices. John Van Alst, a senior attorney at the National Consumer Law Center, noted that Portland's leaders have more resources than Santander's customers, suggesting that they should exercise caution in their dealings with Dundon. The focus on retaining the Blazers in Portland has led some officials to prioritize immediate financial commitments over long-term accountability measures.

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Oregon officials have expressed a commitment to ensuring that taxpayer investments are protected. In light of the scrutiny surrounding Dundon, state and city leaders have emphasized the importance of maintaining the franchise's presence in Portland, citing concerns about the negative impact of losing the team on the city's reputation.

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As the NBA's Board of Governors prepares to finalize Dundon's ownership, the outcome of this transition will be closely monitored by fans, employees, and critics alike. The coming weeks will reveal how Dundon's management approach will shape the future of the Portland Trail Blazers and whether the significant public investment will yield positive results for the community.

What Kind of Owner Will Tom Dundon Be for the Trail Blazers? His Management of the Carolina Hurricanes Could Tell Us

• “Proof of income requirements exist for a reason—they protect borrowers from being sold loans they cannot afford, Oregon Attorney General Dan Rayfield said in a statement.” — Dan Rayfield, Oregon Attorney General

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