Michael Jordan’s $3 billion sale of Charlotte Hornets makes record

• Michael Jordan reportedly reached an agreement to sell his majority stake at Charlotte Hornets for $3 billion.
• Jordan bought majority shares at Hornets in 2010 for $275 million. And if the sale is approved, he would make approximately 11 times that figure.
• The deal now becomes the seventh-most expensive sale in history for a sports team.

NBA Legend, Michael Jordan is considered by many as one of the greatest basketball players of all time. And now, he could be involved in one of the most lucrative sales in Sports, as there are reports that he has sold his majority stake ownership of the NBA franchise, Charlotte Hornets.

The sale, which is still subject to approval by the NBA’s Board of Governors, is reportedly worth about $3 billion.

Jordan is selling to a group led by Gabe Plotkin and Rick Schnall. Plotkin is a hedge fund founder and has been a minority owner in Hornets since 2019, while Schnall is a private equity firm president who owns a minority stake in the Atlanta Hawks since 2015.

The buying group also includes rapper J. Cole and country music artist Eric Church, both of whom are from North Carolina.

Jordan intends to maintain his minority stake at the Hornets, but that would mean that there would be no black majority team owner in the 30-team NBA.

Background

North Carolina native, Michael Jordan has been breaking records on and off the court since his playing days and has inspired many athletes to become business moguls.

His $2.5 million, five-year contract with Nike for the Timeless Air Jordan broke the norm, as he wasn’t just a sponsor and a brand stakeholder. He also had sponsorship deals with McDonald’s, Gatorade, and Hanes.

Jordan, who is a two-time Olympic Gold Medalist, six-time NBA champion, and five-time MVP has been a minority owner at Hornets (known as Bobcats at that time) since 2006, before paying $275 million for a majority stake in the franchise in 2010.

Despite his GOAT status, his 13-year tenure was anything, but successful. His presence on the team has been a source of concern over the years and was often criticized for not spending enough in free agency to make the team competitive.

In the 2011-12 season, the team went on a 23-game losing streak and a .106 winning percentage, which was the worst in NBA history (7-59).

According to the NBA, The Charlotte Hornets went 423-600 in his 13 seasons in charge (26th-best in that span), it never won a playoff series, and the team had yet to secure a title during his time. The Hornets had also become the only team to never reach the playoffs for seven consistent seasons.

How it ranks amongst other big sports team sales

 Jordan’s $3bn Hornet sale is now the seventh-most expensive sale for a sports franchise in history. Team valuations have been on the rise in the last couple of years. And unsurprisingly, six of the seven richest sales have come in the last 13 months.

NFL team, Washington Commanders in April 2023 was sold for a record $6.1 billion. The former owner of the team, Dan Snyder purchased the team for $800 million in 1999 and made a cumulative return of over 650% following the sale.

On the top ten spots are three NFL sides, five NBA sides, one MLB team, and one football club.

Chelsea is the only non-U.S. sale on the list. Following Russia’s invasion of Ukraine in 2022, Russian Billionaire, Roman Abramovich, who was the club owner at that time was met with sanctions by the UK authorities.

This led to the sale of the club for 3.16 billion (13.6 times the amount he bought it for in 2003 – $233 million).

Most expensive sports franchise sales

The protracted Manchester United takeover saga is another big sale that might make the list in the coming weeks.

A bidding war between Qatari banker, Sheikh Jassim bin Hamad Al Thani and INEOS chief, Sir Jim Ratcliffe has continued since the Glazers put up the club for sale.

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