NBA Team’s New Owner Linked to Predatory Lending Allegations
Oregon is poised to approve large public funding for renovations at the Moda Center. The move aims to keep the Portland NBA franchise after its sale to Tom Dundon.
Settlement and documents
In 2020, 33 states and the District of Columbia reached a $550 million settlement with Santander Consumer USA. The settlement addressed aggressive subprime auto lending practices that regulators later challenged.
Records obtained by Filmogaz.com show Dundon’s involvement in key decisions while he led Santander Consumer. Those documents include internal emails and a slide deck from the multistate inquiry.
What the records reveal
The files show Dundon pushed in early 2013 to reduce proof-of-income checks on auto loans. Company emails describe plans to advertise the change to car dealers.
Executives discussed building higher fees and interest rates to offset added risk. The company’s chief risk officer warned that the plan could violate anti-money-laundering and identity-theft rules.
Regulators later said Santander rolled out stated-income policies broadly. Oregon’s 2020 complaint stated that the change increased early payment defaults and repossessions.
Responses and ongoing probes
Oregon’s attorney general, Dan Rayfield, called proof-of-income safeguards essential. Rayfield, elected in 2024, is working with other state attorneys general on a related probe into Exeter Finance.
Dundon’s public statements were limited. He did not answer written questions and replied by text that he could speak only after March 31.
Exeter says it is cooperating with regulators. Santander issued a general statement about compliance and industry best practices.
Financial and personnel context
Dundon left Santander Consumer in 2015 with a separation package exceeding $700 million. He had sold his original subprime lending company in 2006 and kept a 10 percent stake.
Several Santander executives who appear in the records later joined Exeter Finance. Two executives named in the 2013 correspondence are deceased.
Public money for the arena
State lawmakers approved $365 million in public funds to renovate the 30-year-old Moda Center. The bill awaits the governor’s signature.
Combined with local contributions, the total proposed public investment reached about $870 million. That figure is far higher than the team’s initial public request.
Negotiations and political reaction
Supporters argue the renovation protects the city’s economy and reputation. Team lobbyists warned lawmakers that a departure would harm downtown recovery.
Some officials urged caution. State Sen. Khanh Pham sought stronger taxpayer protections and revenue-sharing provisions.
John Van Alst of the National Consumer Law Center advised extra scrutiny during talks with a buyer whose business drew consumer-protection accusations.
Past arena deals and precedents
Not all recent arena projects relied on public money. Seattle’s Climate Pledge Arena underwent $1.15 billion in private renovations.
Dundon has previously contributed private funds to arenas. In 2023, he agreed to a deal in Raleigh in which the city provided $300 million and he pledged $800 million in private development.
As state and city leaders negotiate, critics point to historical concerns about subprime auto lending. The NBA team’s new owner faces renewed scrutiny over predatory lending allegations tied to his business past. Officials must weigh those concerns against the goal of keeping the franchise in Portland.
