RAJ Sports Holding LLC suing Dundon group over inclusion of the Cherng's involvement

[DusterBuster]

A new lawsuit could disrupt the sale of the Portland Trail Blazers to a group of investors led by businessman Tom Dundon, according to a media report and a source with knowledge of the lawsuit.

The suit, filed Monday in Delaware, seeks to bar the deep-pocketed founders of Panda Express from joining Dundon’s investment group. Earlier this month, the estate of late Blazers owner Paul Allen reached a formal agreement to sell the basketball franchise to a group led by Dundon at a valuation of $4.25 billion.

But this week a rival bidder, RAJ Sports Holding LLC -- the owners of the Portland Thorns and Portland Fire -- fought back. The group, led by siblings Lisa Bhathal Merage and Alex Bhathal, wants to prohibit the founders of Panda Express from being involved in the sale and alleges that Andrew Cherng, Peggy Cherng and a related entity breached a July 24 confidentiality and exclusivity agreement, according to a report by Law360, which first reported the lawsuit.

https://www.oregonlive.com/sports/2025/09/new-lawsuit-seeks-to-disrupt-sale-of-portland-trail-blazers-report.html

[DusterBuster]

The TL:dr;

RAJ group was bidding to buy the Blazers against Dundon, they had some sort of conversations and maybe agreements with the Cherng family group. Once the Blazers took Dundons offer, the Cherng’s joined with him instead of the RAJ group. So RAJ is suing to stop them from joining because of supposed contracts and agreements they had previously with them.

Won’t know more til more details come out on impact or what kind of things were signed and when.

That said, terrible look for the RAJ group who’s been a bit of a **** with their handling of the WNBA team rollout. They’re also poorer than Dundon across the board (tho both still below the ability to buy a team alone). They also don’t have the proven track record of running a top 4 major league team as Dundon.

Considering also both the Blazers and Fire will be sharing the same building, seems like a god awful start to that relationship with another ownership group.

Given the choice between the two, I want nothing to do with this RAJ group and hope this goes away fast. How they’ve handled the Fire should install no confidence for anyone. If this drags on, maybe holds up the sale for 6mo-1yr or more... I could see fans boycotting the Fire. Really just bad business all around when trying to start a new franchise in a small market.

[PDXKnight]

^ theyre just sore lasers. There's no way this case goes anywhere besides maybe a settlement but really theres nothing here imho

[DusterBuster]

^ theyre just sore lasers. There's no way this case goes anywhere besides maybe a settlement but really theres nothing here imho

Agreed with being sore losers, but I'm not so quick to agree the case goes nowhere. Let's see what the court documents are first.

If the Cherng Group did violate some contract agreements, they could be forced to stay out of the deal, which would then force either 1) Dundon to find a new major investor, or 2) the Allen Org to find another buyer - which restarts the process again.

Either option puts this RAJ group in terrible light with the city and team. If they lose, the Fire will have to share the Moda with Dundon and Cherng ownership... and that group will own the Moda... I can't imagine them being given any friendly treatment after this in that scenario. If they win (or even if it just drags out), the sports fans of Oregon will be pissed at them for delaying the Blazers sale an extended period of time... potentially causing a boycott of the Fire.

Alternatively, if they win, Dundon backs out of the deal and the Allens just sell it to RAJ and the Cherng Group honors their original contract with RAJ... the us Blazer fans have potentially a **** ownership group at the helm in RAJ who've proven to be a bit of a clown show if the Fire rollout is any indication.

[m0ng0]

Does anybody think the fire or the thorns or whatever the wnba team name is, is going to sell out the moda center? And if so I think they should be on the hook for renovations also. Not sure how long a wnba season is

[DusterBuster]

Does anybody think the fire or the thorns or whatever the wnba team name is, is going to sell out the moda center? And if so I think they should be on the hook for renovations also. Not sure how long a wnba season is

They won't be owners, so they won't be on the hook for renovations. They'll be paying a rental fee like any tenant would be. Owner of the build is responsible for renovations or remodels - same as a homeowner / renter scenario.

[Wizenheimer]

^ theyre just sore lasers. There's no way this case goes anywhere besides maybe a settlement but really theres nothing here imho

Agreed with being sore losers, but I'm not so quick to agree the case goes nowhere. Let's see what the court documents are first.

If the Cherng Group did violate some contract agreements, they could be forced to stay out of the deal, which would then force either 1) Dundon to find a new major investor, or 2) the Allen Org to find another buyer - which restarts the process again.

Either option puts this RAJ group in terrible light with the city and team. If they lose, the Fire will have to share the Moda with Dundon and Cherng ownership... and that group will own the Moda... I can't imagine them being given any friendly treatment after this in that scenario. If they win (or even if it just drags out), the sports fans of Oregon will be pissed at them for delaying the Blazers sale an extended period of time... potentially causing a boycott of the Fire.

Alternatively, if they win, Dundon backs out of the deal and the Allens just sell it to RAJ and the Cherng Group honors their original contract with RAJ... the us Blazer fans have potentially a **** ownership group at the helm in RAJ who've proven to be a bit of a clown show if the Fire rollout is any indication.

yeah....I haven't paid a lot of attention but there have been a couple of stories that don't shine a favorable light on the RAJ Group. And this 'story' has the potential to turn into a major mess....and also delay the sale for months if not years

even though The RAJ Group seems a little bit shifty, I wouldn't be so quick to judge them as the bad guys here. It may be that the Cherngs are more to blame than either RAJ or Dundon. And Dundon may have known that the Cherngs were initially tied to RAJ and after the Vulcans eliminated the RAJ from consideration, Dundon invited the Cherngs, and their money, to the party

we're talking about billionaires here and I wouldn't be surprised if they were all a bit sketchy

[zzaj]

I also haven't been paying that close attention...nor do I want to, really. But the thing I don't get is...what's in it for the Raj group? Hopes of a nice fat settlement? I don't really see any other positive outcome for them.

This feels like it has the potential to be a nothing-burger, but also could blow up. To that end, if it means delay of sale, the Raj group will be incredibly maligned in Portland.

[DusterBuster]

^ theyre just sore lasers. There's no way this case goes anywhere besides maybe a settlement but really theres nothing here imho

Agreed with being sore losers, but I'm not so quick to agree the case goes nowhere. Let's see what the court documents are first.

If the Cherng Group did violate some contract agreements, they could be forced to stay out of the deal, which would then force either 1) Dundon to find a new major investor, or 2) the Allen Org to find another buyer - which restarts the process again.

Either option puts this RAJ group in terrible light with the city and team. If they lose, the Fire will have to share the Moda with Dundon and Cherng ownership... and that group will own the Moda... I can't imagine them being given any friendly treatment after this in that scenario. If they win (or even if it just drags out), the sports fans of Oregon will be pissed at them for delaying the Blazers sale an extended period of time... potentially causing a boycott of the Fire.

Alternatively, if they win, Dundon backs out of the deal and the Allens just sell it to RAJ and the Cherng Group honors their original contract with RAJ... the us Blazer fans have potentially a **** ownership group at the helm in RAJ who've proven to be a bit of a clown show if the Fire rollout is any indication.

yeah....I haven't paid a lot of attention but there have been a couple of stories that don't shine a favorable light on the RAJ Group. And this 'story' has the potential to turn into a major mess....and also delay the sale for months if not years

even though The RAJ Group seems a little bit shifty, I wouldn't be so quick to judge them as the bad guys here. It may be that the Cherngs are more to blame than either RAJ or Dundon. And Dundon may have known that the Cherngs were initially tied to RAJ and after the Vulcans eliminated the RAJ from consideration, Dundon invited the Cherngs, and their money, to the party

we're talking about billionaires here and I wouldn't be surprised if they were all a bit sketchy

Yeah, for the most part, this is just billionaires doing billionaire things - per usual, to the detriment of non-billionaires.

Won't know specifics until court proceedings start with documents being released of who signed / did what and when. So not really here to assign ultimate blame, but even if the Cherngs were in the wrong (breached a contract), the sale was done to Dundon, RAJ Group lost out in terms of who the Allen's ultimately picked to sell the team to. So this still screams of sour grapes and even if they win in the courtroom, the fans lose in multiple ways.

[zzaj]

Agreed with being sore losers, but I'm not so quick to agree the case goes nowhere. Let's see what the court documents are first.

If the Cherng Group did violate some contract agreements, they could be forced to stay out of the deal, which would then force either 1) Dundon to find a new major investor, or 2) the Allen Org to find another buyer - which restarts the process again.

Either option puts this RAJ group in terrible light with the city and team. If they lose, the Fire will have to share the Moda with Dundon and Cherng ownership... and that group will own the Moda... I can't imagine them being given any friendly treatment after this in that scenario. If they win (or even if it just drags out), the sports fans of Oregon will be pissed at them for delaying the Blazers sale an extended period of time... potentially causing a boycott of the Fire.

Alternatively, if they win, Dundon backs out of the deal and the Allens just sell it to RAJ and the Cherng Group honors their original contract with RAJ... the us Blazer fans have potentially a **** ownership group at the helm in RAJ who've proven to be a bit of a clown show if the Fire rollout is any indication.

yeah....I haven't paid a lot of attention but there have been a couple of stories that don't shine a favorable light on the RAJ Group. And this 'story' has the potential to turn into a major mess....and also delay the sale for months if not years

even though The RAJ Group seems a little bit shifty, I wouldn't be so quick to judge them as the bad guys here. It may be that the Cherngs are more to blame than either RAJ or Dundon. And Dundon may have known that the Cherngs were initially tied to RAJ and after the Vulcans eliminated the RAJ from consideration, Dundon invited the Cherngs, and their money, to the party

we're talking about billionaires here and I wouldn't be surprised if they were all a bit sketchy

Yeah, for the most part, this is just billionaires doing billionaire things - per usual, to the detriment of non-billionaires.

Won't know specifics until court proceedings start with documents being released of who signed / did what and when. So not really here to assign ultimate blame, but even if the Cherngs were in the wrong (breached a contract), the sale was done to Dundon, RAJ Group lost out in terms of who the Allen's ultimately picked to sell the team to. So this still screams of sour grapes and even if they win in the courtroom, the fans lose in multiple ways.

It's also just majorly bad pub for them given they own the Thorns and Fire in a local market. Do they not understand that delaying ownership sale could impact fandom for their other Portland-based sports businesses? Unless there is substantial reward for the suit, I just don't see the benefit...

[DaVoiceMaster]

Why was the lawsuit filed in Delaware?

[oldfishermen]

Why was the lawsuit filed in Delaware?

https://www.delawareinc.com/before-forming-your-company/benefits-of-incorporating-in-delaware/

[DusterBuster]

The Athletic w/ Jason Quick has a new article up about it:

https://www.nytimes.com/athletic/6659514/2025/09/24/trail-blazers-sale-lawsuit-minority-stake/

RAJ claims they entered an exclusivity agreement on July 24, 2025, with Andrew and Peggy Cherng, who own Panda Express, to become an “anchor investor” in purchasing the Trail Blazers. After it was announced Dundon would be buying the team, the Cherngs were listed among his group.

The suit says the Cherngs were involved with RAJ as late as Step 5. The weep prior, Aug 28, RAJ and Cherngs had a falling out after a meeting. The Cherngs told their reps at the meeting to cease discussions and leave the meeting. That same morning, Alex Bhathal (half of the siblings who run RAJ) ask Andrew Cherng if he was part of the Dundon group, to which Andrew (according to Alex's version of events) reportedly “explicitly assured Bhathal that defendants were not in discussions with Dundon’s group and had no plans to do so.” The suit says that Cherng went further and said that although he wasn’t “quite there yet” on the deal, RAJ could report the Cherng Family Trust as one of its co-investors to the NBA.

The suit is not aiming to stop Dundon buying the team, but to bar the Cherngs from being part owner in any way shape or form on the Blazers and for damages (amount tbd in court). However, the Cherngs are the "anchor investor" for both parties. So even if this lawsuit can be parsed out and Dundon can move forward, he needs a new "anchor" to be the major financial backbone of the ownership group.

Seems to be still too early to know if, or for how long, this might hold up a sale from my reading of the events.

Another note from the article, RAJ Group is also part owner of the Sacramento Kings. The father, Raj Bhathal, is the major owner of the Kings. His kids, Alex and Lisa are the family members trying to purchase the Blazers.

Needless to say, I'm still firmly camp Dundon. Please don't Kangz my Blazers.

[oldfishermen]

A new lawsuit could disrupt the sale of the Portland Trail Blazers to a group of investors led by businessman Tom Dundon, according to a media report and a source with knowledge of the lawsuit.

The suit, filed Monday in Delaware, seeks to bar the deep-pocketed founders of Panda Express from joining Dundon’s investment group. Earlier this month, the estate of late Blazers owner Paul Allen reached a formal agreement to sell the basketball franchise to a group led by Dundon at a valuation of $4.25 billion.

But this week a rival bidder, RAJ Sports Holding LLC -- the owners of the Portland Thorns and Portland Fire -- fought back. The group, led by siblings Lisa Bhathal Merage and Alex Bhathal, wants to prohibit the founders of Panda Express from being involved in the sale and alleges that Andrew Cherng, Peggy Cherng and a related entity breached a July 24 confidentiality and exclusivity agreement, according to a report by Law360, which first reported the lawsuit.

https://www.oregonlive.com/sports/2025/09/new-lawsuit-seeks-to-disrupt-sale-of-portland-trail-blazers-report.html

The Athletic w/ Jason Quick has a new article up about it:

https://www.nytimes.com/athletic/6659514/2025/09/24/trail-blazers-sale-lawsuit-minority-stake/

RAJ claims they entered an exclusivity agreement on July 24, 2025, with Andrew and Peggy Cherng, who own Panda Express, to become an “anchor investor” in purchasing the Trail Blazers. After it was announced Dundon would be buying the team, the Cherngs were listed among his group.

The suit says the Cherngs were involved with RAJ as late as Step 5. The weep prior, Aug 28, RAJ and Cherngs had a falling out after a meeting. The Cherngs told their reps at the meeting to cease discussions and leave the meeting. That same morning, Alex Bhathal (half of the siblings who run RAJ) ask Andrew Cherng if he was part of the Dundon group, to which Andrew (according to Alex's version of events) reportedly “explicitly assured Bhathal that defendants were not in discussions with Dundon’s group and had no plans to do so.” The suit says that Cherng went further and said that although he wasn’t “quite there yet” on the deal, RAJ could report the Cherng Family Trust as one of its co-investors to the NBA.

The suit is not aiming to stop Dundon buying the team, but to bar the Cherngs from being part owner in any way shape or form on the Blazers and for damages (amount tbd in court). However, the Cherngs are the "anchor investor" for both parties. So even if this lawsuit can be parsed out and Dundon can move forward, he needs a new "anchor" to be the major financial backbone of the ownership group.

Seems to be still too early to know if, or for how long, this might hold up a sale from my reading of the events.

Another note from the article, RAJ Group is also part owner of the Sacramento Kings. The father, Raj Bhathal, is the major owner of the Kings. His kids, Alex and Lisa are the family members trying to purchase the Blazers.

Needless to say, I'm still firmly camp Dundon. Please don't Kangz my Blazers.

How were the RAJ group damaged? Specially since they claim they are not aiming to stop Dundon from buying the team.

Exclusivity clauses, when in writing, are very difficult to enforce in court, let alone claim damages. The penalties for breaking an exclusivity agreement would need to be in contract form, not verbal, and include how each side could end the agreenent.

Clear winners, the attorneys for both sides. They will bank truck loads of billable hours.

[DusterBuster]

A new lawsuit could disrupt the sale of the Portland Trail Blazers to a group of investors led by businessman Tom Dundon, according to a media report and a source with knowledge of the lawsuit.

The suit, filed Monday in Delaware, seeks to bar the deep-pocketed founders of Panda Express from joining Dundon’s investment group. Earlier this month, the estate of late Blazers owner Paul Allen reached a formal agreement to sell the basketball franchise to a group led by Dundon at a valuation of $4.25 billion.

But this week a rival bidder, RAJ Sports Holding LLC -- the owners of the Portland Thorns and Portland Fire -- fought back. The group, led by siblings Lisa Bhathal Merage and Alex Bhathal, wants to prohibit the founders of Panda Express from being involved in the sale and alleges that Andrew Cherng, Peggy Cherng and a related entity breached a July 24 confidentiality and exclusivity agreement, according to a report by Law360, which first reported the lawsuit.

https://www.oregonlive.com/sports/2025/09/new-lawsuit-seeks-to-disrupt-sale-of-portland-trail-blazers-report.html

The Athletic w/ Jason Quick has a new article up about it:

https://www.nytimes.com/athletic/6659514/2025/09/24/trail-blazers-sale-lawsuit-minority-stake/

RAJ claims they entered an exclusivity agreement on July 24, 2025, with Andrew and Peggy Cherng, who own Panda Express, to become an “anchor investor” in purchasing the Trail Blazers. After it was announced Dundon would be buying the team, the Cherngs were listed among his group.

The suit says the Cherngs were involved with RAJ as late as Step 5. The weep prior, Aug 28, RAJ and Cherngs had a falling out after a meeting. The Cherngs told their reps at the meeting to cease discussions and leave the meeting. That same morning, Alex Bhathal (half of the siblings who run RAJ) ask Andrew Cherng if he was part of the Dundon group, to which Andrew (according to Alex's version of events) reportedly “explicitly assured Bhathal that defendants were not in discussions with Dundon’s group and had no plans to do so.” The suit says that Cherng went further and said that although he wasn’t “quite there yet” on the deal, RAJ could report the Cherng Family Trust as one of its co-investors to the NBA.

The suit is not aiming to stop Dundon buying the team, but to bar the Cherngs from being part owner in any way shape or form on the Blazers and for damages (amount tbd in court). However, the Cherngs are the "anchor investor" for both parties. So even if this lawsuit can be parsed out and Dundon can move forward, he needs a new "anchor" to be the major financial backbone of the ownership group.

Seems to be still too early to know if, or for how long, this might hold up a sale from my reading of the events.

Another note from the article, RAJ Group is also part owner of the Sacramento Kings. The father, Raj Bhathal, is the major owner of the Kings. His kids, Alex and Lisa are the family members trying to purchase the Blazers.

Needless to say, I'm still firmly camp Dundon. Please don't Kangz my Blazers.

How were the RAJ group damaged? Specially since they claim they are not aiming to stop Dundon from buying the team.

Exclusivity clauses, when in writing, are very difficult to enforce in court, let alone claim damages. The penalties for breaking an exclusivity agreement would need to be in contract form, not verbal, and include how each side could end the agreenent.

Clear winners, the attorneys for both sides. They will bank truck loads of billable hours.

True winners of any and all lawsuits. Good to be an attorney.

I don’t know enough about exclusivity clauses outside of what it is. I have very little knowledge about how it holds up in court. Hope true, just want this and RAJ group to go away. I want no one connected with the Kangz involved with the Blazers.

[oldfishermen]

https://www.oregonlive.com/sports/2025/09/new-lawsuit-seeks-to-disrupt-sale-of-portland-trail-blazers-report.html

The Athletic w/ Jason Quick has a new article up about it:

https://www.nytimes.com/athletic/6659514/2025/09/24/trail-blazers-sale-lawsuit-minority-stake/

RAJ claims they entered an exclusivity agreement on July 24, 2025, with Andrew and Peggy Cherng, who own Panda Express, to become an “anchor investor” in purchasing the Trail Blazers. After it was announced Dundon would be buying the team, the Cherngs were listed among his group.

The suit says the Cherngs were involved with RAJ as late as Step 5. The weep prior, Aug 28, RAJ and Cherngs had a falling out after a meeting. The Cherngs told their reps at the meeting to cease discussions and leave the meeting. That same morning, Alex Bhathal (half of the siblings who run RAJ) ask Andrew Cherng if he was part of the Dundon group, to which Andrew (according to Alex's version of events) reportedly “explicitly assured Bhathal that defendants were not in discussions with Dundon’s group and had no plans to do so.” The suit says that Cherng went further and said that although he wasn’t “quite there yet” on the deal, RAJ could report the Cherng Family Trust as one of its co-investors to the NBA.

The suit is not aiming to stop Dundon buying the team, but to bar the Cherngs from being part owner in any way shape or form on the Blazers and for damages (amount tbd in court). However, the Cherngs are the "anchor investor" for both parties. So even if this lawsuit can be parsed out and Dundon can move forward, he needs a new "anchor" to be the major financial backbone of the ownership group.

Seems to be still too early to know if, or for how long, this might hold up a sale from my reading of the events.

Another note from the article, RAJ Group is also part owner of the Sacramento Kings. The father, Raj Bhathal, is the major owner of the Kings. His kids, Alex and Lisa are the family members trying to purchase the Blazers.

Needless to say, I'm still firmly camp Dundon. Please don't Kangz my Blazers.

How were the RAJ group damaged? Specially since they claim they are not aiming to stop Dundon from buying the team.

Exclusivity clauses, when in writing, are very difficult to enforce in court, let alone claim damages. The penalties for breaking an exclusivity agreement would need to be in contract form, not verbal, and include how each side could end the agreenent.

Clear winners, the attorneys for both sides. They will bank truck loads of billable hours.

True winners of any and all lawsuits. Good to be an attorney.

I don’t know enough about exclusivity clauses outside of what it is. I have very little knowledge about how it holds up in court. Hope true, just want this and RAJ group to go away. I want no one connected with the Kangz involved with the Blazers.

Thanks for keeping us updated on this topic.

As far as the RAJ groups future connected to the Blazers. This is my 1000% gut guess.

It is my understanding Peggy controls the money, not Andrew. Suing a sweet old oriental grandma that has a billionairs bottomless purse, with a tempest in a teapot lawsuit, will piss her off. There are many legal ways she can make this lawsuit a very expensive leason for the RAJ group.

[Wizenheimer]

"Yes, exclusivity clauses are generally legal and enforceable under federal and state laws, but their legality and enforceability depend on their specific terms. They are considered valid contracts that restrict one or both parties from working with competitors for a set period, and they are common in business, though they can face challenges if they become too broad, create monopolies, or violate antitrust laws. To ensure enforceability, the clause must have clear, unambiguous terms regarding the scope, duration, and any performance metrics."


so yeah, they can be enforceable...and they can be the opposite depending on the terms and the language. So sure, sounds like a fertile field for lawyers to plow for months and months

sure does seem like the Cherngs may have been kind of slimy. Of course, slimy can be business as usual

[DusterBuster]

"Yes, exclusivity clauses are generally legal and enforceable under federal and state laws, but their legality and enforceability depend on their specific terms. They are considered valid contracts that restrict one or both parties from working with competitors for a set period, and they are common in business, though they can face challenges if they become too broad, create monopolies, or violate antitrust laws. To ensure enforceability, the clause must have clear, unambiguous terms regarding the scope, duration, and any performance metrics."


so yeah, they can be enforceable...and they can be the opposite depending on the terms and the language. So sure, sounds like a fertile field for lawyers to plow for months and months

sure does seem like the Cherngs may have been kind of slimy. Of course, slimy can be business as usual

Yeah, from our POV well on the ground far away from these documents and proceedings, there's - at this point - know way to say definitively that this is a "nothingburger" or that it will drag on for years unfortunately.

One interesting note out of all this is that the Cherng's - unlike initial assumptions - really seem like they want to be active participants in the Blazers ownership, and not just this being a line-item in their portfolio of stuff. The note that they want to be alternative governors would seem to align with a active participant business partner vs a glorified piggybank to dip into as needed.

[m0ng0]

"Yes, exclusivity clauses are generally legal and enforceable under federal and state laws, but their legality and enforceability depend on their specific terms. They are considered valid contracts that restrict one or both parties from working with competitors for a set period, and they are common in business, though they can face challenges if they become too broad, create monopolies, or violate antitrust laws. To ensure enforceability, the clause must have clear, unambiguous terms regarding the scope, duration, and any performance metrics."


so yeah, they can be enforceable...and they can be the opposite depending on the terms and the language. So sure, sounds like a fertile field for lawyers to plow for months and months

sure does seem like the Cherngs may have been kind of slimy. Of course, slimy can be business as usual

Like their food...slimey. if I was the Blazers I would try and find a way to get the fire into the memorial coliseum. Not sure they could but if you wanna play hardball, they might be able to go that way

[zzaj]

Again, I don't really see a point to the lawsuit since it's not going to change the outcome of ownership for the Raj group. Seems like purely sour grapes that their offer was not accepted, and didn't like that their material partner jumped ship.

I'll be honest--I was going to take my daughter to some Fire games. I guess I still will, but this definitely puts a damper on wanting to use my wallet to support anything having to do with the Raj group.

EDIT: I also don't see anything all that slimey about what the Cherngs did--they really want to be part of the ownership group, and when it was discovered that the Raj offer wasn't going to be accepted, they switched teams. Should they have signed an exclusivity contract (If they even did)? Of course not. But if anything it just tells me that they really want to be part of ownership--which is a good thing, probably.