Michael Jordan Sells Majority Stake after 13 Years
In a significant development for the National Basketball Association (NBA), basketball legend Michael Jordan has agreed to sell his majority stake in the Charlotte Hornets to a group of investors led by Gabe Plotkin and Rick Schnall. League sources have confirmed that the transaction values the franchise at approximately $3 billion, marking the end of Jordan’s 13-year tenure as the team’s majority owner.
A representative for Jordan officially confirmed the sale, with a source close to the deal revealing that the former NBA champion sold his stake for the staggering sum of $3 billion. As part of the agreement, Jordan will retain a minority ownership in the Charlotte Hornets.
Jordan initially acquired a minority interest in the Hornets before taking a majority stake in 2010 for $275 million. If the sale receives approval, it would mean that Jordan has made a remarkable tenfold return on his initial investment.
Throughout Jordan’s ownership, the Hornets have faced challenges, making the playoffs only twice. However, his influence and presence within the team will continue as he will oversee basketball operations until the upcoming NBA draft and the start of free agency on July 1.
Gabe Plotkin, who currently holds a minority stake in the Hornets and serves as an alternate governor on the NBA Board of Governors, will become one of the franchise’s governors alongside Rick Schnall. Plotkin is the founder of Tallwoods Capital, an investment management firm.
On the other hand, Schnall boasts an impressive background as co-president of private equity firm Clayton, Dubilier & Rice, where he has worked for 27 years. He has also been a minority owner of the NBA’s Atlanta Hawks and an alternate governor on the NBA Board of Governors since 2015. Schnall is currently in the process of selling his investment in the Hawks, which is expected to be finalized in the coming weeks.
The buyer group for the Charlotte Hornets also includes billionaire Dan Sundheim, owner of D1 Capital, and prominent North Carolina musicians J. Cole and Eric Church. The transaction encompasses other assets under the Hornets Sports & Entertainment group, such as the Greensboro Swarm, the team’s G League affiliate, the Hornets Venom GT, their esports team, and the management and operation of the Spectrum Center, the venue where the Hornets play their home games.
The sale of the Charlotte Hornets is contingent upon the approval of the NBA Board of Governors, which will review the transaction. According to Forbes, the Hornets are currently valued at $1.7 billion, positioning them as the 27th most valuable team out of the 30 NBA franchises.
The ownership transition signifies a significant turning point for the Charlotte Hornets, and the future under the leadership of Gabe Plotkin, Rick Schnall, and their investor group holds promise as they aim to steer the franchise towards greater success in the highly competitive NBA landscape.Michael Jordan Sells Majority Stake in Charlotte Hornets