Charlotte Hornets owner Michael Jordan provided a response during a news conference at Spectrum Center in Charlotte, North Carolina, on October 28, 2014.
Jeff Siner | Tribune News Service | Getty Images
Renowned basketball icon Michael Jordan has reached an agreement to sell his majority stake in the Charlotte Hornets of the National Basketball Association (NBA) to wealthy investors Gabe Plotkin and Rick Schnall, as confirmed by Jordan’s representative on Friday.
A source close to the deal informed CNBC that Jordan sold his stake for $3 billion. However, Jordan will retain a minority ownership of the team under the agreed terms.
In 2010, Jordan acquired a majority stake in the Hornets for $275 million, having previously held a minority interest in the team. If the sale is approved, this would mean a tenfold return on Jordan’s original investment.
During Jordan’s tenure as the majority owner, the Hornets have faced difficulties, having only qualified for the playoffs twice.
Plotkin, who founded the investment management firm Tallwoods Capital, acquired a minority stake in the Hornets in 2019 and has served as an alternate governor on the NBA Board of Governors.
Schnall, who has worked for private equity firm Clayton, Dubilier & Rice for 27 years as co-president, has been a minority owner of the Atlanta Hawks in the NBA and served as an alternate governor since 2015.
Schnall is currently in the process of selling his investment in the Hawks, which is expected to be finalized within the next several weeks.
Billionaire Dan Sundheim, owner of D1 Capital, is also part of the buyer group along with North Carolina musicians J. Cole and Eric Church.
In addition to the majority stake in the team, the sale includes other assets within the Hornets Sports & Entertainment group, such as the Greensboro Swarm, the team’s G League affiliate, the Hornets Venom GT, the esports team, and the management and operation of the Spectrum Center, the Hornets’ home arena.
The transaction is subject to approval by the NBA Board of Governors.
According to Forbes, the Hornets are valued at $1.7 billion, placing them 27th out of the 30 NBA teams.
