By Bridget Rachek, Tulane Sports Law
On October 13, 2025, RAJ Sports, owners of the Portland Thorns and Portland Fire, reached a settlement with the Cherng Family Trust, founders of Panda Express, over a lawsuit alleging a breach of an exclusivity agreement to jointly pursue a purchase of the Portland Trail Blazers. The terms of the settlement have not been disclosed.
Alex and Lisa Bhathal Merage, co-founders of RAJ Sports, alleged that on July 24, 2025, the Cherng family entered into an exclusivity and confidentiality agreement with RAJ Sports to collaborate on a bid for the Trail Blazers. Under the terms of that agreement, the Cherngs were prohibited from participating in or supporting any competing bids. Nevertheless, on September 12, 2025, the Cherngs were publicly named as minority investors in a rival bid led by billionaire Tom Dundon. RAJ Sports claimed that the Cherngs had violated the agreement by aligning themselves with Dundon’s group while continuing to engage with RAJ Sports under the pretense of partnership. On September 24, 2025, RAJ Sports filed suit in Delaware state court against Andrew and Peggy Cherng, alleging breach of contract and seeking to block them from participating in Dundon’s $4.25 million acquisition of the team. The complaint asserted that the Cherngs’ actions undermined RAJ Sports’ exclusive rights, caused reputational damage, and disrupted the sale process. RAJ Sports initially sought a temporary restraining order and preliminary injunction to prevent the Cherngs from participating in the transaction, in addition to seeking damages “in an amount to be proven at trial.” A hearing on the requested relief had been scheduled for October 16, 2025; however, the parties announced that they had reached an out-of-court settlement on October 13, 2025.
“We are pleased to have reached a resolution out of court which we believe recognizes our position while also preserving the future of basketball in Portland,” a RAJ Sports spokesperson said in a statement. “We look forward to working closely with the Trail Blazers as the Fire join them at Moda Center next spring.” Representatives for the Cherng family have not publicly commented on the settlement. With the legal dispute resolved, Dundon and his investment group are expected to move forward with closing the sale by spring 2026, pending approval from the NBA’s Board of Governors.
