A new lawsuit could throw a wrench into the Portland Trail Blazers sale, just when everyone thought the deal was done.
The legal challenge, filed Monday in Delaware by RAJ Sports Holding LLC, aims to block the founders of Panda Express from joining Texas businessman Tom Dundon’s investment group in purchasing the NBA franchise.
Behind the lawsuit are siblings Alex Bhathal and Lisa Bhathal Merage, who already own the Portland Thorns soccer team and the newly launched Portland Fire of the WNBA.
They claim that Andrew and Peggy Cherng – the Panda Express founders now partnering with Dundon – broke a confidentiality agreement signed back in July during the sales process.
The battle for the Blazers has apparently been fierce behind closed doors.
According to Matthew Kish of The Oregonian, an unnamed source described “hand-to-hand combat” between the competing groups after Dundon’s bid became public on August 14 – even before a purchase agreement was signed.
“RAJ worked to leapfrog Dundon even after the NHL team owner had apparently become the Allen estate’s preferred buyer,” Kish reported.
The race seemed settled on September 12 when Paul Allen’s estate announced a “formal sale agreement” with Dundon’s group, which includes the Cherng Family Trust, Marc Zahr (CEO of Blue Owl Capital), and Portland-based Sheel Tyle (CEO of Collective Global).
No one’s quite sure yet how this lawsuit might affect the sale.
The $4.25 Billion Deal
Dundon’s group agreed to purchase the Blazers for a whopping $4.25 billion in August.
The deal remains tentative until the NBA Board of Governors gives its stamp of approval.
If everything goes according to plan, the new ownership would take control on March 31, 2026 – with just six games left in the 2025-26 season.
But this lawsuit could complicate the timeline.
The Bhathal siblings clearly aren’t giving up their pursuit of the team without a fight, even as the Allen estate moves forward with Dundon’s group.
For Blazers fans, the ownership drama adds another layer of uncertainty to a franchise that’s been in transition since Paul Allen’s death in 2018.
