Michael Jordan’s Mega Sale of the Hornets: Unveiling the Mammoth Price Tag

### Introduction

Legendary NBA player Michael Jordan has recently agreed to sell his majority ownership stake in the Charlotte Hornets to wealthy investors Gabe Plotkin and Rick Schnall. The sale, which is valued at an impressive $3 billion, marks a significant return on investment for Jordan, who initially purchased majority ownership in 2010 for $275 million. The new buyer group also includes billionaire Dan Sundheim, as well as musicians J. Cole and Eric Church. However, the transaction is still subject to approval by the NBA Board of Governors.

### Jordan’s Investment and Ownership Challenges

In 2010, Michael Jordan made a shrewd move by acquiring majority ownership of the Charlotte Hornets for $275 million. This investment has proven to be tremendously profitable, as the current sale price is ten times the amount of his initial purchase. Jordan’s decision to buy the team was not only a financial one but also a strategic move to expand his influence and impact beyond his iconic playing career.

However, during Jordan’s ownership, the Hornets have faced their fair share of challenges. Despite Jordan’s legendary status as a six-time NBA champion, the team has only made the playoffs twice under his ownership. This lack of success on the court has been a point of frustration for both fans and Jordan himself. It raises questions about the correlation between great playing careers and successful ownership ventures in professional sports.

### The Buyers: Plotkin and Schnall

Gabe Plotkin, the founder of investment management firm Tallwoods Capital, and Rick Schnall, a co-president at private equity firm Clayton, Dubilier & Rice, are the new majority owners of the Charlotte Hornets. Plotkin, who previously acquired a minority stake in the team in 2019, has already had experience as an alternate governor on the NBA Board of Governors. Schnall, on the other hand, has been involved in the ownership of the Atlanta Hawks and holds a wealth of experience in the private equity industry.

The addition of Plotkin and Schnall brings a fresh perspective to the ownership of the Hornets. Their background in investment management and private equity suggests that they may bring a more strategic and analytical approach to running the team. Fans will be hoping that this new ownership group can bring about a turnaround in the team’s fortunes on the court.

### Minor Stake Retained by Jordan

While Michael Jordan is selling his majority ownership stake, he will still retain a minority stake in the team as part of the agreement. This allows him to maintain his connection to the team and possibly continue to contribute his expertise and basketball knowledge. It also serves as a testament to his commitment to the Hornets and his desire to see them succeed.

### Valuation and Future Outlook

At the time of the sale, Forbes valued the Charlotte Hornets at $1.7 billion, which ranks them 27th among the 30 NBA teams in terms of valuation. The $3 billion sale price represents a significant increase in value for the team, reflecting the growing popularity and financial success of the NBA as a whole.

The new ownership group’s investment in the team, combined with their strategic expertise, could potentially boost the team’s performance both on and off the court. The Hornets have a dedicated fan base in Charlotte, and there is optimism that the new owners will provide the resources and guidance needed to turn the franchise into a consistent contender.

### Conclusion

Michael Jordan’s decision to sell his majority ownership stake in the Charlotte Hornets for $3 billion marks a significant milestone in NBA history. His investment in the team has resulted in a considerable return on investment, allowing him to continue his involvement with a minority stake. The new ownership group of Gabe Plotkin and Rick Schnall brings fresh perspectives and expertise that could lead to a turnaround in the team’s fortunes. As the transaction awaits approval from the NBA Board of Governors, fans eagerly anticipate the future of the Charlotte Hornets under this new ownership.