Former NBA legend Michael Jordan has recently announced the sale of the Charlotte Hornets to a group of investors led by Gabe Plotkin and Rick Schnall. The terms of the deal have not been disclosed, but it is reported that the Hornets have a valuation of $3 billion. Other investors in the group include rapper J. Cole and country music singer Eric Church.
Jordan has been the majority owner of the Hornets since 2010 when he purchased the team for $275 million. He will remain a minority owner after the transaction, pending approval from the league owners. Currently, Jordan is the only Black majority owner in the NBA. Prior to owning the Hornets, he was a minority owner and president of basketball operations for the Washington Wizards.
Gabe Plotkin is the founder of Tallwoods Capital, a venture capital firm based in California. He has been a minority owner of the Hornets and also serves on the NBA’s governing board. Rick Schnall, on the other hand, is the co-president of Clayton, Dubilier & Rice, a private equity firm in New York. He is a minority owner of the Atlanta Hawks and will be selling his investment in the Hawks as part of this transaction with the Hornets.
During a recent press conference, NBA Commissioner Adam Silver discussed the importance of increasing diversity on the league’s governing board. He mentioned the possibility of Michael Jordan becoming a principal governor and acknowledged that it is Jordan’s decision to sell the team given the increase in its value since he purchased it.
As part of the deal, Plotkin, Schnall, and the other investors will also take control of the Hornets’ farm team, the Greensboro Swarm, and operate the Spectrum Center, the team’s arena.
It is worth noting that there is a lack of owners of color in the four major U.S. sports leagues. Kim Pegula, an Asian woman, owns the NFL’s Buffalo Bills, Shad Khan from Pakistan owns the Jacksonville Jaguars, Arte Moreno, a Mexican-American, owns the MLB’s Los Angeles Angels, and Sheila Johnson is a part-owner of both the NHL’s Washington Capitals and the NBA’s Washington Wizards.
One of Jordan’s most significant decisions during his ownership of the Hornets was relocating the team back to Charlotte after its time in New Orleans. NBA teams rarely go on sale, but when they do, they command high prices. Past notable sales include the Los Angeles Clippers sold for $2 billion, the Houston Rockets for a then-record $2.2 billion, the Brooklyn Nets for $2.3 billion, and the Minnesota Timberwolves for $1.5 billion.
In conclusion, the sale of the Charlotte Hornets marks a significant milestone in the NBA, with Jordan’s ownership coming to an end. The new group of investors, led by Plotkin and Schnall, will bring fresh perspectives and opportunities for the team and its affiliated entities.
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