Ex-Warriors owner worth $1.2 B reveals real reason behind selling $520 M stake with threat of rival league to NBA imminent

There were a lot of talks and speculations about the NBA following Luka Doncic's shocking trade to the LA Lakers on Feb. 2. One of the most talked-about discussions stemmed from ex-Golden State Warriors owner Chamath Palihapitiya’s revelation of why he sold his $520 million share with the team in 2022.

Chamath Palihapitiya believed that a well-backed group of billionaires could soon compete with the NBA, just like when LIV Golf tried to compete with PGA. He said this on an X post on Tuesday, where he reposted a 12-page reaction by a Texas attorney Chris Kratovil on the Dallas Mavericks’ shocking trade of the 25-year-old Doncic to the glamour franchise Lakers.

“I sold my ownership in the Warriors last year, in part, because I was pretty sure competition for the NBA was coming a la LIV Golf vs PGA,” Palihapitiya tweeted.

Palihapitiya then cited Kratovil’s speculation as an initial domino that could result in a new NBA counterpart in the near future.

"The (speculated) antics below only reinforce the likelihood that a group of well heeled investors with $5-10B could quickly stand up a competitor to the NBA."

Palihapitiya also quipped that the league should just turn LeBron James as commissioner and just let Doncic get his supermax even if he is not eligible anymore with the Lakers.

"After this trade, they may want to start with Luka and pay him his supermax and get LeBron by making him the commissioner."

Kratovil theorized that the Doncic trade was part of a ploy that would allow the Mavericks to tank and eventually move to another city since Texas has yet to legalize sports betting.

Palihapitiya, who is worth $1.2 billion (per Forbes), bought a 10% stake with the Warriors in 2010 for $25 million before selling it for $520 million in 2022, the year the Warriors won their fourth title with Steph Curry. The Warriors are now $9.14 billion (per the Guardian), becoming one of the most lucrative franchises in the league.

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Ex-Warriors owner proposes what a startup basketball league could do to compete with the NBA

Chamath Palihapitiya followed up the initial post with bullet points proposal outlining what a foreign league could do to challenge the NBA.

It includes having 10 teams from the largest markets, paid-only streams, a $500 million salary cap, and players getting shadow equity, among other things, which he believes is the most important of it all.

The suggestions come as LeBron James’ longtime business partner Maverick Carter is looking to raise $5 billion to create a new professional basketball league in Europe.