Posted on 06/16/2023 8:58:15 AM PDT by MinorityRepublican
Michael Jordan has agreed to sell his majority stake in the Charlotte Hornets to a group led by Gabe Plotkin and Rick Schnall for an approximate $3 billion valuation, according to league sources. The transaction ends Jordan's 13-year run as majority owner.
Schnall, a minority owner with the Atlanta Hawks, and Plotkin, a minority owner with the Hornets, will become the franchise's governors once the NBA completes its vetting and approval process. Jordan will continue to oversee basketball operations through Thursday's NBA draft and the start of free agency July 1.
Once the sale is complete, Jordan will keep a minority stake and maintain a presence with the franchise.
Jordan, a six-time NBA champion and five-time MVP, is largely considered to be the greatest player in the history of the game and has been the league's only Black majority owner. Jordan paid $275 million for a majority stake in the franchise in 2010.
Jordan sold a significant minority stake to Plotkin, founder and chief investment officer of Melvin Capital, and Daniel Sundheim, founder and chief investment officer of D1 Capital, in 2020, and Sundheim is part of the group purchasing the Hornets, sources said.
Schnall, co-president at private equity firm Clayton, Dubilier & Rice in New York, was part of a group including majority owner Tony Ressler and Grant Hill that purchased the Hawks in 2015 for $850 million.
(Excerpt) Read more at espn.com ...
He’s 60, so he probably wants to enjoy his life’s earning while he still can.......................
He lives about a half mile from me in a 30K sf home in the Bear’s Club. He also has his own private club in Hobe Sound. He certainly does enjoy life.
LeBron will never be the GOAT. MJ is the GOAT.
Larry Legend is the real GOAT.
$3 billion dollars for a small market basketball team? I guess the Yankees or the cowboys must be worth $20 Billion.
The distortions of economy are obvious in this. $3 billion for a circus act, I mean it does get broadcast on TV worldwide. Still, just a bunch of boys playing. So many poor, homeless, living in the dirt. Some of them making shoes for these “playas” for their room, board and bread.
Makes sense. But at that point he's already filthy rich. Unless he was in debt.
Off topic, but, the value of these NBA franchises is in the billions now?
In 1974, the New Oleans Jazz joined the NBA as an expansion team, and the franchise fee was 6 million dollars.
The market value of an NBA team has increased greatly, just an observation.
It's not worth that much. But there's only 30 NBA teams and one was just on the market now. If you're a billionaire, you'll have to overpay for your toy.
NBA has gone global, especially now since more and more European players are taking over.
It was like owning a minor league baseball team back then. The NBA was not a global sport at the time.
It shows how much they don't trust the stock market, real estate, crypto, fiat currency, and money markets.
Is it really overpaying? If a willing buyer and willing seller agree on this price, isnt that just the market at work?
Granted that the market for NBA team ownership is limited, and the supply is quite limited, with only 30 teams.
Assessing the market value or business valuation of a sports franchise, must be very different from how the value of other businesses are determined.
It’s distinctly possible that he’s in debt again.
Michael likes to gamble.
It looks like he fleeced the buyer.
#27 Charlotte Hornets Calculated October 2022
TEAM VALUE $1.7B
OWNER(S) Michael Jordan
CHAMPIONSHIPS 0
YEAR PURCHASED 2010
PRICE PAID $175M
REVENUE $269M
OPERATING INCOME $94M
DEBT/VALUE 12%
PLAYER EXPENSES $105M
GATE RECEIPTS $31M
WINS-TO-PLAYER COST RATIO 111
REVENUE PER FAN $37
METRO AREA POPULATION 2.7 Million
Revenue and operating income are for 2021-22 season and net of revenue sharing and arena debt service.
They don’t even own their arena. The taxpayers of Charlotte are getting fleeced for that.
Jordan is only selling his majority stake.
The team has never won a championship and has 12 of 33 winning seasons.
**The distortions of economy are obvious in this. $3 billion for a circus act,**
Exactly, I enjoyed playing sports as a teen, but by age 7 had driven farm tractors unsupervised, and in pre-teen years had become the ‘autopilot’ as Dad would catnap on deadhead legs (no passengers) of air charter trips in a twin Cessna. At 13 built my first mini-bike (the welds were embarrassingly ugly), but the second one at 15 was much better.
I watched my sons do well in hs football. I tried to encourage them to learn craftsmen skills, even built a 14’ tall x 39’ long steel T-Rex skeleton. But the (WAY overhyped) glamor of sports was what they followed. But they managed to find non sport careers in the post school years.
I rode a bull in a rodeo... once. It was a very short ride. 18 and stupid. Dad warned, “Bull riding is gladiator stuff. It’s got absolutely nothing to do with ranching or horsemanship.” He was right, and though passed on, his words are still true.
But people pay to be entertained.
Some good friends of mine’s son decided he wanted to play football when he was nine. His mom was worried about him getting hurt and tried to talk him into playing soccer or something else instead.
A couple of weeks later, the kid decided he wanted to learn bull riding. (The Houston Rodeo was in town.) His mom decided that playing football wouldn’t be so bad after all and they signed him up. 😏
Bill Russell has the most NBA championships.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.