Michael Jordan to sell majority stake in Charlotte Hornets in $3 billion deal

Michael Jordan originally bought the Charlotte Hornets in 2010 for $275 million. The statements confirmed that Michael Jordan will continue as the minority stakeholder in the team.

Most profitable sports league 

This sale is part of a trend where sports teams, including basketball teams, have been sold for very high prices. The NBA has become one of the most profitable sports leagues in the world, and its teams have greatly increased in value. Wealthy individuals, like billionaires, have been investing their money to become team owners. In a previous record-breaking deal, billionaire Mat Ishbia agreed to buy over 50% of the Phoenix Suns for $4 billion.

The sale process will be complete only after the NBA Board of Governors approves the deal. 

“In the same way that it’s wonderful that one of our greatest, Michael Jordan, could become the principal governor of a team, he has the absolute right to sell at the same time,” NBA Commissioner Adam Silver said earlier this month at the NBA Finals.

Gabe Plotkin, who used to run a hedge fund called Melvin Capital Management, has been a part owner of the Charlotte Hornets since 2019. 

Rick Schnall, who works at a company called Clayton Dubilier & Rice, is currently selling his smaller ownership share in the Atlanta Hawks basketball team. Apart from Schnall, there are other investors involved in the Charlotte Hornets team. These investors include Dan Sundheim, who started a hedge fund called D1 Capital Partners, and Chris Shumway, who turned his investment company into a family office in 2011. They are all part of the ownership group for the Hornets.

The sale of Charlotte Hornets by Micheal Jordon also means that the NBA no longer has a Black majority team owner.

(With agency inputs)

Updated: 17 Jun 2023, 04:54 PM IST