Jordan reportedly reached an agreement to sell his majority stake in the NBA’s Charlotte Hornets for $3 billion to a group led by Gabe Plotkin and Rick Schnall.
Michael Jordan could be involved in one of the most lucrative sales in sports history.
As previously reported, Jordan reportedly reached an agreement to sell his majority stake in the NBA’s Charlotte Hornets for $3 billion to a group led by Gabe Plotkin and Rick Schnall.
If approved, he would make an estimated $2.7 billion, a nearly 11-fold return on Jordan’s initial investment, based on his reported purchase price.
In 2006, Jordan’s legacy with the Charlotte Hornets took root as a minority shareholder. Four years later he scaled his interests to a majority ownership, after purchasing from previous owner Bob Johnson. The sale was rumored to be $275 million, per ESPN, while The Charlotte Observer stated it was $180 million.
What’s more, Jordan became the only Black majority owner of a sports franchise at the time.
“Purchasing the Bobcats [now the Hornets] is the culmination of my post-playing career goal of becoming the majority owner of an NBA franchise,” Jordan said when he purchased the team, according to Bleacher Report. “I am especially pleased to have the opportunity to build a winning team in my home state of North Carolina.”
As a majority owner, Jordan’s presence has been met with concerns over the year. According to the NBA, The Charlotte Hornets were 423-600, and the team had yet to secure a title during his 13-year tenure. The Hornets had also become the only team to never reach the playoffs for seven consistent seasons.
Jordan may be exiting from his current role, but that doesn’t mean he is saying goodbye to the franchise all together. It has been said Jordan will revert back to a minority owner once the sale of his majority stake has been finalized.
“He always looked to be a hands-on owner,” ESPN commentator Jeff Van Gundy said, per NBA. “I know he has the fishing and the auto racing that he’s involved in, but I still didn’t expect him to get out of the NBA. And yet he looks like he is going to make a tidy profit, so good for him.”
Currently, the sale of the Charlotte Hornets is awaiting approval from the NBA Board of Governors.