The NBA has officially approved Michael Jordan’s $3 billion sale of his majority stake in the Charlotte Hornets. The buying group, led by Gabe Plotkin and Rick Schnall, has received the green light from the NBA’s Board of Governors, allowing the selling process to proceed.
This significant valuation marks a considerable change from when Jordan first became involved with the Hornets. In 2006, he initially invested as a minority owner, buying out the previous owner for $275 million. Over the years, Jordan acquired an 80% stake in the team. With the recent sale, he will make a whopping $2.1 billion, not accounting for taxes and fees, which results in approximately $1.1 billion after deductions.
Though Jordan is selling the majority stake, he will still retain a 10% stake in the team. This remaining share is valued at $300 million, proving to be a valuable asset for the NBA legend.
The buying group includes other notable figures, such as rapper J. Cole, singer-songwriter Eric Church, and venture capitalists Dan Sundheim, Ian Loring, and Chris Shumway, along with local Charlotte investors Damian Mills and Amy Levine Dawson.
During Jordan’s ownership, the Hornets haven’t experienced significant success, with limited postseason appearances and no playoff series wins since 2010. However, the team’s recent roster additions, including LaMelo Ball, Brandon Miller, and Nick Smith Jr., alongside the veteran presence of Gordon Hayward, may indicate a potential turnaround for the franchise.
Regardless of the team’s future performance, Michael Jordan’s sale of the majority stake in the Hornets is a lucrative business deal, solidifying his position as one of the most successful and influential figures in sports and business.