Topline
Michael Jordan sold his majority stake ownership of the Charlotte Hornets—the North Carolina NBA team he’s owned for more than a decade—to a group including a millionaire hedge fund manager and rapper J. Cole.
Michael Jordan sold his majority stake in the Hornets, which he has held since 2010.
Key Facts
Jordan sold to a group led by Gabe Plotkin, a hedge fund founder who already owns a minority stake in the Hornets, and Rick Schnall, a private equity firm president who owns a minority stake in the Atlanta Hawks, the NBA announced Friday.
The buying group also includes rapper J. Cole and country music artist Eric Church—both of whom are from North Carolina—as well as former minority stake owner Dan Sundheim, Ian Loring, Dyal HomeCourt Partners and local investors Amy Dawson and Damian Mills.
Jordan also plans to maintain a minority stake in the Hornets, and will continue overseeing the Hornets’ operations as its owner and chairman until at least July 1, ESPN reported, citing league sources.
The transaction still requires approval from the NBA Board of Governors.
Key Background
North Carolina native and six-time NBA champ Jordan bought a majority stake in the Hornets—then known as the Bobcats—for $180 million in 2010, after owning a minority stake since 2006. He was the first former NBA player to become a majority owner and he is still the league’s only Black majority owner. In the 2011-2012 season after his purchase, the team struggled with a 23-game losing streak with a .106 winning percentage, which was the worst in NBA history. The team was renamed in 2014 and regained some ground getting to the playoffs, but have still never won a championship. Jordan sold a minority stake of the team to Plotkin, who founded Tallwoods Capital, formerly Melvin Capital, and Daniel Sundheim in 2019.
Forbes Valuation
The Hornets are valued at $1.7 billion, in part thanks to the promise of a new stadium. In June 2022, the city approved a $275 million deal to renovate Spectrum Center, home of the Hornets, and extend the team’s lease until 2045. The price of Friday’s deal was not disclosed.
Further Reading
Sources: Michael Jordan finalizing sale of Charlotte Hornets (ESPN)
The Charlotte Hornets And The Value Of Culture (Forbes)
Michael Jordan Sells Minority Interest In Hornets, And His Return Is Even Better Than Reports Suggest (Forbes)
Why are there so few Black team owners in US professional sports? (Guardian)
Source: https://www.forbes.com/sites/katherinehamilton/2023/06/16/michael-jordan-sells-charlotte-hornets-to-group-including-j-cole-and-eric-church-as-team-is-now-worth-10x-what-he-paid-for-it/