Basketball legend Michael Jordan has made the decision to sell a majority of his stake in the Charlotte Hornets, an NBA team. According to sources, the deal is currently being finalized with a group led by Gabe Plotkin and Rick Schnall for a whopping $3 billion. This move marks the end of Michael Jordan’s 13-year tenure managing the organization.
Michael Jordan originally purchased the Charlotte Hornets in 2010 for $275 million. It has been confirmed that he will continue to hold a minority stake in the team.
The NBA: A Highly Profitable Sports League
This sale is part of a trend where sports teams, including basketball teams, are being sold at record-high prices. The NBA has emerged as one of the most lucrative sports leagues globally, leading to a significant increase in the value of its teams. Many wealthy individuals, including billionaires, are now investing their money to become team owners. In a recent groundbreaking deal, billionaire Mat Ishbia agreed to purchase over 50% of the Phoenix Suns for an impressive $4 billion.
The sale will only be finalized after approval from the NBA Board of Governors.
In a statement earlier this month at the NBA Finals, NBA Commissioner Adam Silver said, “In the same way that it’s wonderful that one of our greatest, Michael Jordan, could become the principal governor of a team, he has the absolute right to sell at the same time.”
Gabe Plotkin, who previously ran the hedge fund Melvin Capital Management, has been a part owner of the Charlotte Hornets since 2019. Rick Schnall, who works at Clayton Dubilier & Rice, is currently selling his smaller ownership share in the Atlanta Hawks basketball team. Other investors involved in the Charlotte Hornets team include Dan Sundheim, the founder of hedge fund D1 Capital Partners, and Chris Shumway, who transformed his investment company into a family office in 2011. They all form part of the Hornets’ ownership group.
With Michael Jordan selling the Charlotte Hornets, the NBA will no longer have a majority Black team owner.
(With agency inputs)