How Trail Blazers owner Tom Dundon brought cheap cost-cutting measures from Hurricanes to Portland

Tom Dundon has made himself an object of ridicule in recent years, showcasing a prudence that is seemingly incompatible with the world of professional sports. 

The venture capitalist is worth billions of dollars. Despite his healthy portfolio, he has opted to tighten his purse strings when it comes to spending on the Trail Blazers and Hurricanes, the two franchises he holds a majority ownership stake in.

That has made for awkward viewing for both Portland and Carolina's fanbases. With that, here's a look at Dundon's history of frugality -- a reputation that has brought him scorn in recent seasons.

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Tom Dundon cheap cost-cutting with NHL's Hurricanes

Dundon has long been considered to be one of the NHL's most infamous owners, employing a meticulous and frugal attitude towards building an NHL franchise.

Dundon has spent much of his eight-year term as Hurricanes governor cutting costs not related to Carolina's roster. For example, Dundon sacked longtime broadcaster John Forslund, who followed the team from Hartford to Raleigh and soundtracked some of the Hurricanes' greatest moments, including their 2006 Stanley Cup win.

Carolina wanted to turn Forslund -- a full-time employee -- into an independent contractor whose salary was based on team attendance. Forslund wouldn't budge, leading to his exit. He eventually landed in Seattle, calling games for the Kraken.

Forslund wasn't the only broadcaster to leave Raleigh in acrimonious circumstances. That was also the case for longtime radio voice Chuck Kaiton, who was ousted following the 2018 season.

According to the Charlotte Observer, Dundon's final offer to Kaiton consisted of an 80 percent pay cut. Predictably, Kaiton took Dundon's offer as "an invitation to leave."

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"I really was hoping we could make some headway," Kaiton told the Observer. "It’s his decision to offer what he offered and it was quite a substantial decrease. It really basically told me they weren’t that interested in keeping me. That’s life. It’s his team.”

The Hurricanes are believed to cut corners on housing for scouts and analysts during assignments. They're also known to pay well below-market value for off-ice staff. Head coach Rod Brind'Amour reportedly makes less than other top tacticians like Todd McLellan and Peter DeBoer despite building Carolina into a contender over recent seasons.

The Hurricanes got into financial disputes with AHL affiliate the Chicago Wolves, resulting in a one-year split. The Wolves were reinstated as Carolina's AHL affiliate in May 2024. Four years earlier, the Hurricanes found themselves in a similar tiff with the Charlotte Checkers, their former AHL affiliate. Carolina ended its affiliation with the organization following the end of the 2019-20 season.

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Hurricanes record under Tom Dundon

Despite Dundon's curious methods of keeping costs low, the Hurricanes have remained a force in the NHL, making the postseason on eight straight occasions. They've posted a 358-182-56 record in the eight full seasons since Dundon took charge, thrice making it to the Eastern Conference Finals. Much of that success can be attributed to Brind'Amour, a one-time Jack Adams Award winner as the NHL's best coach.

Here's a look at their season-by-season results over the years.

Tom Dundon cheap cost-cutting with Trail Blazers

Dundon has brought his parsimonious ways to the Blazers, refusing to open up his checkbook despite a healthy net value.

During the postseason, Dundon has implemented countless methods to save a buck, according to The Athletic's Jason Quick. Under Dundon's helm, all members of Portland's traveling circus -- players and coaches notwithstanding -- were required to check out of their hotel by 12:30 p.m. to avoid late fees.

The team has only just started traveling its two-way players to games, having opted against doing so to save money on hotels and food, per The Rose Garden Report. Portland also culled its support staff, denying travel for its team photographer and digital reporter during the Blazers' series against the Spurs.

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Then, there's the case of Portland's head-coaching search. Dundon is leading the charge for a new boss after Chauncey Billups' arrest by the FBI in a gambling probe. Tiago Splitter seems an apt candidate -- he has performed admirably during Billups' absence, pushing the Blazers to relevancy after years of limp performances.

That hasn't stopped Dundon from searching elsewhere, however. According to Quick, Dundon has conducted a "phone-book's worth" of interviews, breaking with the etiquette typically afforded to incumbent bosses.

The Stein Line's Jake Fischer reported that Dundon doesn't plan on paying more than $1.5 million annually for a new coach, well below the market rate. By comparison, the NBA's top assistants typically make somewhere in the range of $1 million and $1.5 million a season, per Fischer.

Blazers owner Tom Dundon criticized for his approach to managing the team 👀 pic.twitter.com/8IRm1LNpqd

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How did Tom Dundon make his money?

The co-founder and chairman of Southpaw Capital Partners, Dundon took home $713 million as part of a 2017 settlement agreement when he left his post as CEO of Santander Consumer USA.

He has since seen his portfolio expand, with investments in Topgolf and Pickleball Inc. proving profitable in recent years. Dundon is a prolific speculator, having invested money in a variety of companies in the worlds of sports and entertainment, healthcare, real estate and hospitality, as well as automotive and financial services sectors. He also has his own company: Dundon Capital Partners.

Tom Dundon net worth

According to Forbes, Dundon is valued at $2.3 billion. His investment in the Hurricanes and Blazers is likely to only increase that evaluation in the years to come.

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