(Photo credit: Ron Chenoy-Imagn Images)

A group led by Carolina Hurricanes owner Tom Dundon has reached a formal agreement to purchase the Portland Trail Blazers from the estate of Paul Allen, a deal that will require approval from the NBA board of governors to become official.

The Trail Blazers announced the agreement on Friday. The Oregonian reported the transaction values the franchise at $4.25 billion.

Under the agreement, the team will remain in Portland.

At least two members of the ownership group have connections to Oregon. Sheel Tyle is the founder of Collective Global, based in Portland. And Peggy Cherng, part of the family that owns Panda Express restaurants, attended Oregon State.

No date has been scheduled for the NBA governors to vote, but the closing date for the sale is set for no later than March 31, 2026.

The Dondon group has a task ahead of it -- rebuilding the team and figuring out its arena situation.

The Blazers, once a perennial playoff participant, are 117-211 (.357) under head coach Chauncey Billups over the past four seasons. Their only NBA championship came in 1977 with Bill Walton at center and Jack Ramsay as their head coach.

The home Moda Center, which opened in 1995, also is in need of renovation or replacement and is seen as the centerpiece of the revitalization of the Rose Quarter section of the city.

Allen, the billionaire co-founder of Microsoft, purchased the Trail Blazers for $70 million in 1988. He died in 2018, with his will directing his estate to sell the team to fund philanthropic efforts.

Allen's estate also owns the NFL's Seattle Seahawks and a 25 percent stake in the Seattle Sounders of MLS.

--Field Level Media