Imagine pouring your heart and soul into a major business deal, only to feel betrayed by those you trusted most. That's the essence of the drama unfolding in Portland, where the owners of the WNBA's Portland Fire and the Thorns FC (soccer), RAJ Sports, have withdrawn a lawsuit that was triggered by the high-profile sale of the Portland Trail Blazers. But here's where it gets controversial: the lawsuit centered around the founders of Panda Express, Andrew and Peggy Cherng, and their involvement in a competing ownership group led by Tom Dundon.
This story, originally reported by the Portland Business Journal, a trusted KGW News partner, highlights a complex legal battle that has now reached a resolution. RAJ Sports, spearheaded by siblings Lisa Bhathal Merage and Alex Bhathal, had been diligently working since May to assemble an investor group to purchase the Trail Blazers. A crucial part of their plan involved the Cherngs, the billionaire power couple behind the Panda Express empire, whose combined wealth is estimated to be around a staggering $7.7 billion. Their financial backing would have been a significant asset in acquiring the NBA team.
However, at the same time, Tom Dundon, owner of the NHL's Carolina Hurricanes, was also putting together his own bid for the Blazers. Dundon's group included notable figures like Sheel Tyle, co-CEO of Portland-based Global Collective, and Marc Zahr, co-President of Blue Owl Capital. This group is currently awaiting final approval from the NBA to finalize the purchase. And this is the part most people miss: two competing groups vying for the same prize, the Portland Trail Blazers.
The core of the lawsuit revolved around a confidentiality and exclusivity agreement allegedly signed at the end of July. According to RAJ Sports' complaint, this agreement explicitly prohibited the Cherngs and their family trust from participating in any other bids for the Blazers. RAJ Sports claimed that the Cherngs breached this agreement when their involvement with Dundon's group was publicly announced on September 12th. This announcement sent shockwaves through the business community, leading RAJ Sports to file the lawsuit in the Delaware Court of Chancery at the end of September.
However, in a surprising turn of events, RAJ Sports formally withdrew the lawsuit on Monday afternoon. In a statement, the ownership group stated, “We are pleased to have reached a resolution out of court which we believe recognizes our position while also preserving the future of basketball in Portland.” The exact terms of the resolution remain undisclosed, leaving room for speculation. What exactly does 'recognizing our position' mean? Did they receive some form of compensation? Or was this simply a strategic retreat to avoid a potentially lengthy and costly legal battle?
The dropping of the lawsuit signals a potential end to this chapter of the Blazers' ownership saga. But it also raises some fundamental questions about business ethics and the enforceability of confidentiality agreements in high-stakes deals. Could this have been avoided with clearer contract language? Or does the pursuit of a lucrative business opportunity always trump previous agreements? What are your thoughts on the Cherngs' involvement with Dundon's group after allegedly signing an exclusivity agreement with RAJ Sports? Do you believe RAJ Sports made the right decision in dropping the lawsuit? Share your opinions in the comments below! This article is not offering legal advice.
