Billionaire Trail Blazers Owner Built Fortune on Dubious Subprime Loans, Raising Questions About Proposed Arena Deal
Tom Dundon, the new owner of the Portland Trail Blazers, has been accused of building his fortune on dubious subprime loans that targeted vulnerable borrowers. According to a 2020 lawsuit filed by the state of Oregon against Santander Consumer USA, the company Dundon was involved with allegedly preyed on over 265,000 people nationwide through high-interest car loans they couldn't afford.
The lawsuit, which was settled out of court in 2021, alleged that Santander Consumer USA engaged in predatory lending practices, including charging exorbitant interest rates and fees to borrowers who were struggling to make payments. The company's tactics were deemed so egregious that the state of Oregon accused it of "preying on Oregonians" through its high-interest car loans.
Dundon's involvement with Santander Consumer USA dates back several years, according to records obtained by ProPublica. As a key player in the company's growth and expansion, Dundon helped build the business into one of the largest subprime lenders in the country. However, his past dealings have come under scrutiny as he prepares to break ground on a new arena for the Trail Blazers.
The proposed arena deal has been met with both excitement and skepticism from city officials and residents alike. While some see it as an opportunity to revitalize the city's downtown area, others are concerned about the potential impact of Dundon's business history on the project. "We're looking at this very carefully," said a spokesperson for the City of Portland. "We want to make sure that any investment in our community is responsible and beneficial to all parties involved."
Critics argue that Dundon's past involvement with Santander Consumer USA raises questions about his ability to operate a successful business without engaging in predatory practices. "It's not just about the money; it's about the people who were hurt by these loans," said a consumer advocate. "We need to make sure that anyone doing business in our community is committed to treating their customers with fairness and respect."
The proposed arena deal is currently pending approval from city officials, but it's unclear whether Dundon's past dealings will impact the project's chances of moving forward. As one expert noted, "It's a complex issue, and there are many factors at play here. But ultimately, we need to prioritize transparency and accountability in any business venture that affects our community."
In response to the controversy surrounding his business history, Dundon has maintained that he is committed to operating his businesses with integrity and respect for his customers. However, critics argue that his past actions speak louder than words.
The proposed arena deal is set to break ground later this year, pending final approval from city officials. As the project moves forward, it remains to be seen whether Dundon's business history will have a lasting impact on the community he has pledged to serve.
Sources:
Tony Schick and Conrad Wilson, "Oregon Accused the Company He Created of Predatory Lending," Oregon Public Broadcasting, October 3, 2025.
ProPublica, "Billionaire Trail Blazers Owner Built Fortune on Dubious Subprime Loans," October 10, 2025.
This story was compiled from reports by ProPublica and ProPublica.
