From Subprime Loans to the Blazers: Tom Dundon's Ownership Sparks Outrage in Portland

Key facts

• Tom Dundon bought the Portland Trail Blazers at auction a year ago.
• Dundon made his billions through subprime auto loans; two-thirds of customers faced interest rates over 20%.
• Interim coach Tiago Splitter led the Blazers to the playoffs but remains unpaid as a head coach.
• Former coach Chauncey Billups was suspended after a federal indictment linked him to a gambling scheme involving Mafia families.
• The gambling scheme defrauded victims of approximately $7 million using rigged poker games and concealed technology.
• Billups posted a 117-211 record over four seasons before his suspension.
• Dundon refused to give away T-shirts at the team's first home playoff game in five years.
• Team employees must check out of hotels by 12:30 p.m., even when flights depart later.

A New Low in Sports Ownership

The Portland Trail Blazers have a new owner, Tom Dundon, and his tenure is already drawing comparisons to the worst in professional sports. Dundon, who purchased the team at auction a year ago, has drawn sharp criticism for cost-cutting measures that extend from refusing to give away T-shirts at playoff games to requiring employees to check out of hotels hours before departure. The team's interim coach, Tiago Splitter, who led the Blazers to a surprise playoff berth this season, remains unpaid as a head coach because Dundon refuses to offer more than an assistant's salary.

The Subprime Auto Loan Fortune

Dundon's wealth comes from a business model that has been described as predatory. He made his billions in subprime auto loans, offering deceptively low rates that could skyrocket within a few years. According to reporting by Drew Magary, two-thirds of Dundon's customers ended up with interest rates exceeding 20%. Magary wrote, "When you're an even bigger scumbag than private equity, that's quite a feat." Dundon's practices have drawn comparisons to the worst of the financial industry.

A Coaching Scandal Tied to Organized Crime

The Blazers' coaching situation has been tumultuous. Former head coach Chauncey Billups, hired in 2021 after the team fired a reasonably successful predecessor, posted a 117-211 record over four seasons. This season, Billups coached just one game before being suspended by the NBA following a federal indictment on gambling charges. The indictment alleges that Billups and former player Damon Jones participated in a sophisticated criminal conspiracy involving members of the Bonanno, Genovese, Gambino, and Lucchese crime families.

Rigged Poker Games and Mafia Threats

According to federal prosecutors, the conspiracy involved rigged high-stakes poker games in Las Vegas, Miami, Manhattan, and the Hamptons. Victims were enticed to play alongside Billups and Jones, while the defendants used concealed technology—including contact lenses and glasses to read marked cards, modified shuffling machines, and an X-ray table—to cheat players out of millions of dollars. When victims refused to pay, members of the crime families resorted to threats and intimidation. The scheme is believed to have defrauded victims of approximately $7 million.

From Blazers Fan to Twins Fan: A Cautionary Tale

The Blazers' decline has been a long time coming. The team last won a playoff series in 2015, a thrilling first-round victory that prompted one longtime fan to abandon the team for the Minnesota Twins. That fan, who had followed the Blazers for 25 years, said he knew in his heart that moment was the peak of happiness the NBA could offer. The team did reach the Western Conference Finals in 2019, where they were swept, but has largely struggled since, posting a 42-40 record this season before being eliminated in five games in the first round.

The Legacy of Paul Allen and the Dundon Era

The Blazers were previously owned by Paul Allen, the Microsoft co-founder who died in 2018. Allen, while not beloved, was seen as a harmless eccentric who once paid the Rolling Stones to party on his yacht so he could play guitar with them. After his death, his family ran the team for several years before selling to Dundon. The contrast between Allen's ownership and Dundon's has been stark, with the new owner's penny-pinching and the coaching scandal casting a pall over the franchise.

What Comes Next for the Blazers

The Blazers face an uncertain future. Interim coach Tiago Splitter has kept the team competitive despite his uncertain status, but Dundon's unwillingness to invest in the team raises questions about long-term success. The gambling indictment has further tarnished the franchise's reputation. For fans who remember the Allen era, the Dundon ownership represents a new low—a cautionary tale that, as one former fan put it, "any ownership situation can, always, get worse."

The bottom line

• Tom Dundon's ownership of the Trail Blazers is marked by extreme cost-cutting and a coaching scandal linked to organized crime.
• Dundon made his fortune through subprime auto loans, with two-thirds of customers facing interest rates over 20%.
• Former coach Chauncey Billups was indicted for participating in a $7 million gambling scheme involving Mafia families.
• Interim coach Tiago Splitter led the Blazers to the playoffs but remains unpaid as a head coach.
• The Blazers' decline from the Paul Allen era to the Dundon era illustrates how ownership can dramatically affect a franchise.
• The team's future is uncertain, with questions about investment and leadership lingering.