Michael Jordan Is Selling His Majority Stake in the Charlotte Hornets for $3 Billion

Michael Jordan is cashing in on his investment in the Charlotte Hornets.

The NBA legend is selling his majority share of the basketball team to a group led by Gabe Plotkin and Rick Schnall for an approximate $3 billion valuation, ESPN reports, more than 10 times what Jordan purchased his stake for. Although the Hornets didn’t disclose the price of the deal, the team announced the agreement in a statement. Schnall, an Atlanta Hawks minority owner, and Plotkin, a Hornets minority owner, will end up as the franchise’s governors following a vetting and approval process by the NBA.

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The transaction would end the six-time NBA champion and five-time MVP’s 13-year stint as majority owner. However, it wouldn’t be the end of Jordan’s presence among the team, as the deal leaves him with a minority share. Schnall is in the process of selling his investment in the Hawks, which is expected to take place in the next several weeks, the Hornets say.

Jordan has been the league’s single Black majority owner. Back in 2010, he paid $275 million to obtain the majority stake in the Hornets, ESPN reported. Ten years later, he sold a significant minority stake in the team to two parties: Plotkin, who is the founder and chief investment officer of Melvin Capital, and Daniel Sundheim, founder and chief investment officer of D1 Capital. Sundheim, rapper J. Cole, and country music singer-songwriter Eric Church are also part of the group now acquiring the team, according to the NBA statement.

After MJ bought his share, the Hornets suffered a difficult 2011-2012 season, experiencing a 23-game losing streak and a .106 winning percentage—the worst in NBA history, Forbes reported. The team was renamed in 2014 and saw better stats during Jordan’s time as majority owner, but they have yet to win a championship.

The Hornets were valued at $1.7 billion in October 2022, according to Forbes. That sum was partially thanks to a plan to renovate the team’s stadium. In June 2022, the Charlotte City Council approved $275 million to upgrade Spectrum Center, home of the Hornets, and extend its lease until 2045. WBTV reported at the time that the team will pay a total of $32 million in rent through the end of its lease, and continue its annual $1.1 million capital fund contributions.

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