The Trail Blazers’ new owner is a cheapskate billionaire, but there could be a method to his madness

“[Caleb] Love and Sidy Cissoko were instrumental in getting the Blazers through that stretch of the season, going well beyond the kind of minutes and production that teams with playoff aspirations normally expect from their two-ways.

It’s a horrible look for a new owner to come in and nickel and dime a franchise like this, but the second report of Dundon’s cheapness could legitimately damage the future of the Trail Blazers. It’s being reported that interim head coach Tiago Splitter has been low-balled on a long-term contract. Splitter took over the team in October when Chauncey Billups was arrested as part of a federal gambling probe, leading the team to a 42-40 finish, the first time the Blazers have finished above .500 since 2020-21. It was a profound finish under difficult circumstances, with Splitter clearly resonating with the players and having success. Replacing him would be bad enough, but replacing him while trying to offer below-market salary is another entirely. There’s a very real risk that this approach leads to Portland losing their bird in the hand to chase two in the bush, but that’s even assuming those other birds would play for low salary.

What is Tom Dundon’s deal?

It’s ridiculous to split hairs when it comes to billionaires, but there’s no question Dundon is in the lower-end of the spectrum when it comes to NBA owners. Forbes estimates his net worth at approximately $2.3B — and there’s good reason to watch his pocket when it comes to his decisions to be cheap.

In looking at the other team Dundon owns, the Carolina Hurricanes of the NHL (which he purchased in 2017), we can see his blueprint for team building, and prior to that we can learn things about his investment track record too. Dundon’s resume is a pattern of conservative investments and growing them over time.

The initial money for Dundon’s portfolio came from founding a subprime car financing company in Dallas, which was reprehensible, but allowed him to accumulate significant assets when he sold the business in 2006. From there, he divided his funds into numerous corporations and real estate ventures around Dallas, but most notably, he was the driving force behind investment in TopGolf, which netted him the bulk of his fortune.

In 2017, he purchased a controlling 52% of the Carolina Hurricanes for $430M, and amidst relocation fears he reiterated that it was his intention to keep the Hurricanes in Raleigh, North Carolina. In the five years prior to Dundon purchasing the team, the Hurricanes were a mid-tier spender in the NHL, who were intentionally made lean from 2014-to-2016 in anticipation of a sale.

The first two years under Dundon’s ownership placed the Hurricanes as one of the league’s lowest spenders. The same kind of penny pinching apparent with the Blazers was present in Carolina too, but in hindsight, this time was used to strip the team back and build it from the foundations. As an owner he fired the majority of the front office, hiring his own general manager and head coach to take the primary roles — while also revamping the team to have one of the most extensive advanced analytics departments in the NHL.

There was undeniable cheapness, but not without a plan. The braintrust of the Hurricanes put in place by Dundon weren’t part of the hockey establishment designed to get immediate results, but leaned more towards being disruptors. General manager Don Waddell was a former player with front office experience with the Atlanta Thrashers and Pittsburgh Penguins, who the Winnipeg Jets wanted to retain when they relocated — but Waddell was unwilling to move. The first head coach hiring under the Dundon regime was Ron Brind’Amour, who won a Stanley Cup with the Canes in 2006, and served the team as an assistant coach.

Both Waddell and Brind’Amour were hired on “prove it” deals. Low money compared to their peers, with Dundon needing to see results before he invested more money. The team finished 4th in their division in back-to-back seasons to start (an improvement over the 6th place finish the team had prior), and this was enough to see Dundon loosen the purse strings.

In 2018-19 the Hurricanes were the biggest spenders in the NHL. In 2020-21 they were one of the five highest-spending clubs in hockey. Since Waddell and Brind’Amour proved their concept there has never been a lack of funds, nor resistance from ownership to spend money to try and attract free agents or make big trades.

This season the Carolina Hurricanes finished the regular season as the No. 1 team in the Eastern Conference. Since Dundon took over the Canes have been to the playoffs in eight consecutive years, making it to the Eastern Conference Finals three times. The team made one of the biggest free agent signings in hockey last year by inking Nikolaj Ehlers, their core players have all received long-term extensions, Carolina is regarded as having one of the best prospect pools in hockey for a contending team, largely due to the scouting and analytics departments put in place since Dundon’s arrival. He also negotiated an arena renovation plan, which required $300M of public investment and $800M from Dundon and private investors.

While the Carolina Hurricanes have been an unbelievable success story, none of this is to say that Dundon’s austerity, slow-build approach will work in the NBA. The financials between the two league are fundamentally different, with the Hurricanes’ highest-paid player making $9.75M this season and the entire roster costing $87M — compared to Jrue Holiday who makes $32.4M, and the Blazers as a whole having $188M in salary. With absolutely all due respect to the NHL, the NBA is a whole other world when it comes to the money needed to own, operate, and have success.

What happens from here?

It’s apparent that Dundon is taking the same firm, cost-cutting approach that he took with the Carolina Hurricanes at first. However, when applied to the NBA this seems like penny-pinching cheapness without any nuance. The Dundon approach to building the team can work, but it won’t if he plays hardball over things like coaching salary and two-way players traveling. This is a case of needing to understand the culture of the NBA as a whole, then affect change on a team level.

Like it or not, it’s unlikely in the NBA to find a quality coach on a low-money “prove it” contract. It will take more upfront investment than Dundon is comfortable with, and he will need to adjust more fully to understanding that his new team is not the NHL. That said, history has shown him to be a true supporter and investor if he can see the return and believes in the direction. The question is whether or not he’s willing to lower his expectations of what success means to him. Getting above .500 and making the playoffs is success in the NBA. It’s something to build off, and he can’t hold back spending money until he sees his team finish Top 3, because that won’t happen without an injection of funds.

We’re left with the greatest coin toss in the NBA. Either Dundon will drive the Blazers into the ground and ruin everything that was built this past season, or he will revamp the team and turn a small-market team into an absolute powerhouse, as he did with the Hurricanes. Time will tell where that coin lands.