The sale of a sports franchise frequently draws a lot of interest and intrigue, especially when it involves iconic figures. Michael Jordan, widely recognized as one of the greatest basketball players of all time, just sold the Charlotte Hornets, making headlines. Everyone is wondering how much profit Jordan made from this trade.
We examine the financial ramifications of this high-profile sale and throw light on the motivations and objectives of the new owners who stepped into Jordan’s shoes, from Jordan’s original investment in the club to the elements that contributed to its growing worth over the years.
Michael Jordan sold majority Hornets shares
Basketball superstar Michael Jordan has announced the sale of the majority share of the Charlotte Hornets, effectively ending his 13-year career as the team’s owner. While the financial terms of the agreement have not been released, GOAT will retain a minority ownership in the franchise he purchased for roughly $275 million in 2010.
Read the full release on https://t.co/BzkRIrrehy.
đź”— https://t.co/roYUH9ilgI pic.twitter.com/N17fYc0HBp
— Charlotte Hornets (@hornets) June 16, 2023
During MJ’s ownership, the Hornets struggled to attain major on-court success, finishing with a record of 423-600 and a lack of playoff victories. Despite this, Jordan’s decision to sell the majority stake is unsurprising, given rumours of his intention to exit the NBA ownership business arose in 2020, when he sold a minority position to Gabe Plotkin and Dan Sundheim.
The sale of the Hornets to a consortium managed by Plotkin and Rick Schnall has stirred debate about the league’s lack of Black majority ownership. It also raises concerns about diversity and participation within ownership groups, a matter identified as a priority by NBA Commissioner Adam Silver.
As the veteran transitions to a minority owner, the new ownership group, pending approval, puts together a diverse group of individuals, including recording artist J. Cole, and is charged with molding the Hornets franchise’s future, both on and off the court.
Exploring the financial numbers behind the move
Michael’s decision to sell a controlling ownership in the Charlotte Hornets has sparked speculation about the financial implications of the transaction. The transaction, which is now being finalized with a group led by Gabe Plotkin and Rick Schnall, is expected to cost $3 billion. This significant valuation reflects the remarkable development in NBA franchise values as well as the league’s standing as one of the most profitable in the world.
Michael Jordan is selling his majority stake in the Charlotte Hornets to the Gabe Plotkin/Rick Schnall group for an approximate $3 billion valuation, league sources tell ESPN. pic.twitter.com/zDuhsg8mDE
— Adrian Wojnarowski (@wojespn) June 16, 2023
GOAT paid $275 million for the Hornets in 2010, making this potential transaction a great return on investment. Jordan will retain a minority ownership position while selling a majority stake, demonstrating his continuous devotion to the franchise.
The transaction exemplifies the growing trend of affluent individuals, including billionaires, spending large sums in sports clubs. In recent years, the NBA has seen several record-breaking sales, including billionaire Mat Ishbia‘s $4 billion purchase of the Phoenix Suns.
The transaction, which is pending approval from the NBA Board of Governors, ends Jordan’s 13-year career as owner of the Hornets. It also implies that there is no longer a Black majority team owner in the NBA, raising concerns about diversity and representation within ownership groups. As the financial details emerge, it becomes clear that the sale of the Charlotte Hornets represents a significant financial milestone in the world of professional sports ownership.
