Michael Jordan’s ownership of the Charlotte Hornets has proven to be one of the most lucrative sports business deals in history.

From acquiring the team for a nominal sum in 2010 to the recent sale at a staggering $3 billion valuation, Jordan’s financial gains with the Hornets have surpassed even his earnings from a four-decade-long association with Nike.

The team is selling for $3 billion, with Jordan making a profit of over $2 billion. That will surpasses his earnings from Nike over the past 40 years, which is $1.8 billion.

we will take a closer look at how Jordan turned the Hornets into a profitable franchise, despite their lackluster performance on the court. We will also examine the implications of the sale for the future of the team and the NBA.

How Jordan bought the Hornets for a bargain

Michael Jordan is widely regarded as the greatest basketball player of all time, having won six NBA championships and five MVP awards with the Chicago Bulls. He is also a successful businessman and entrepreneur, with a net worth of $2.2 billion as of 2021.

Jordan’s involvement with the Hornets began in 2006, when he bought a minority stake in the team from then-owner Robert Johnson for $300 million. At that time, the team was known as the Charlotte Bobcats and had relocated from New Orleans in 2004.

In 2010, Johnson decided to sell his majority stake in the team, and Jordan emerged as the sole bidder. He agreed to pay $175 million for the remaining 80% of the team, valuing the franchise at $218 million. This was a bargain price, considering that the average NBA team was worth $367 million at that time.

Jordan became the first former NBA player to become a majority owner of a team, and also the only Black majority owner in the league. He said he was committed to bringing success to Charlotte and restoring the legacy of the original Hornets, who had left for New Orleans in 2002.

How Jordan turned the Hornets into a profitable franchise

Jordan’s tenure as the owner of the Hornets was marked by mixed results on and off the court. On one hand, he managed to improve the team’s finances and increase its value over time. On the other hand, he struggled to build a competitive roster and make consistent playoff appearances.

One of Jordan’s first moves as the owner was to rebrand the team as the Charlotte Hornets in 2014, after acquiring the rights to the name from New Orleans. This was a popular decision among fans, who had fond memories of the original Hornets and their stars like Larry Johnson, Alonzo Mourning and Muggsy Bogues.

Jordan also invested in improving the team’s facilities and fan experience. In 2015, he opened a new practice facility and office complex adjacent to Spectrum Center, the home arena of the Hornets. In 2022, he secured a $275 million deal with the city of Charlotte to renovate Spectrum Center and extend
the team’s lease until 2045.

Jordan also leveraged his personal brand and connections to attract sponsors and partners for the Hornets. He signed deals with companies like LendingTree, Honeywell, FanDuel and DraftKings. He also brought in celebrities like rapper J. Cole and country music star Eric Church as minority investors.

As a result of these efforts, Jordan turned the Hornets into a profitable franchise that generated $240 million in revenue and $39 million in operating income in 2021. He also increased its value to $1.7 billion as of 2022, making it one of the fastest-growing teams in terms of valuation.

How Jordan is selling the Hornets for a staggering price

Despite Jordan’s success in boosting the Hornets’ finances and value, he was unable to translate that into on-court success. The team only made three playoff appearances under his ownership, and never advanced past the first round. The team also had several draft misses and questionable trades that hampered its development.

In June 2023, Jordan shocked the NBA world by announcing that he was selling his majority stake in the Hornets to a group led by Gabe Plotkin and Rick Schnall, two hedge fund managers who already owned minority stakes in the team. Plotkin is also known as one of the founders of Melvin Capital, which suffered huge losses during the GameStop short squeeze earlier this year.

The sale price was not disclosed officially, but sources told ESPN that it was around $3 billion, which would be a record for an NBA team. The previous record was $2.35 billion, which was paid by Steve Ballmer for the Los Angeles Clippers in 2014.

Jordan’s decision to sell the Hornets was reportedly motivated by several factors, including his desire to cash out on his investment, his frustration with the team’s performance, and his health concerns after contracting COVID-19 in 2020. Jordan also plans to retain a minority stake in the team and continue to oversee its operations until at least July 1, 2023.

What the sale means for the future of the Hornets and the NBA

The sale of the Hornets marks the end of an era for Jordan and the team, but also opens up new possibilities for the future. The new owners have expressed their excitement and optimism about taking over the franchise and building on its potential.

Plotkin and Schnall said they were honored and humbled to become the majority owners of the Hornets, and praised Jordan for his leadership and vision. They also said they were committed to bringing a championship to Charlotte and creating a positive impact in the community.

The new owners also have a strong basketball background and expertise. Plotkin played basketball at Northwestern University, while Schnall is a board member of USA Basketball. They also have a close relationship with Jordan, who mentored them as minority investors since 2019.

The sale of the Hornets also reflects the rising value and demand for NBA teams, especially in the post-pandemic era. The league has seen its revenue and ratings rebound after a challenging year due to COVID-19. The league has also expanded its global reach and fan base through digital platforms and partnerships.

The NBA is also expected to add two new expansion teams in the near future, which could fetch up to $2.5 billion each. The league is also exploring new opportunities in markets like Africa, India and Mexico.

Conclusion

Michael Jordan’s ownership of the Charlotte Hornets has proven to be one of the most lucrative sports business deals in history. He bought the team for a nominal sum in 2010 and sold it for a staggering $3 billion in 2023, making a profit of over $2 billion. He also surpassed his earnings from Nike over the past 40 years, which is $1.8 billion.

Jordan turned the Hornets into a profitable franchise by rebranding the team, improving its facilities, attracting sponsors and partners, and leveraging his personal brand. However, he was unable to make the team a contender on the court, and decided to sell his majority stake to a group led by hedge fund managers Gabe Plotkin and Rick Schnall.

The sale marks the end of an era for Jordan and the team, but also opens up new possibilities for the future. The new owners are optimistic about taking over the franchise and building on its potential. They also have a strong basketball background and expertise, and a close relationship with Jordan.

The sale also reflects the rising value and demand for NBA teams, especially in the post-pandemic era. The league has seen its revenue and ratings rebound after a challenging year due to COVID-19. The league has also expanded its global reach and fan base through digital platforms and partnerships.

The NBA is also expected to add two new expansion teams in the near future, which could fetch up to $2.5 billion each. The league is also exploring new opportunities in markets like Africa, India and Mexico.