Posted on 04/01/2010 9:15:34 AM PDT by OldDeckHand
The nation’s first African-American billionaire, Robert Johnson, is enduring a cash crush so severe, reports Peter Lauria, that he had to hock his NBA franchise to Michael Jordan for a song..
When the nation’s first African-American billionaire, Robert Johnson, bought the expansion Charlotte Bobcats NBA team in 2002, his highest-profile move was hiring the most famous athlete in the world, Michael Jordan, to run the team. In a twist thick with irony, the employee has now become the savior: Two weeks ago, Jordan bought the team for pennies on the dollar.
The sale underscores Johnson’s dire financial situation. Four sources with firsthand knowledge tell The Daily Beast that the 63-year-old founder of BET desperately needs cash. The Bobcats sale was precipitated by a need for liquidity to fund his other investment obligations and avoid becoming insolvent, according to business associates of Johnson’s and sources involved in the sale.
Indeed, three sources specifically involved with the team sale said Johnson was eager to ink a deal before an upcoming interest payment on the team’s $40 million in bank debt, so he could save the cash, even though it was only for a few million dollars. That, combined with the deal’s terms, suggests that Johnson is dangerously close to being illiquid. Though reports said he initially wanted between $325 million and $350 million for the Bobcats, the NBA valued the deal at $275 million. But that includes the assumption of debt and other liabilities taken on by Jordan. His Airness only paid Johnson a fire-sale price of $25 million cash in the deal, these three sources say
(Excerpt) Read more at thedailybeast.com ...
Sure, Jordan has to assume the franchise debt which is somewhere north of $250 million, still - it's a good price.
Wow I’m surprised Oprah didn’t help with all her Billions...
My first thought as well.
(did I do that right?)
Bailed out? Sounds to me like he got his pants pulled down, smacked, and left twisting in the wind. MJ is a shrewd operator and took full advantage of an incompetent businessman.
Maybe that's how one "keeps it real"?
wonder what sucked this billionaire down so badly?
Actually, I think Johnson is a Republican.
Oprah? I’m surprised Barack Obama didn’t bail him out!
From all that I have read about Michael Jordan, he is very smart, very tough, very competitive - in all fields.
Johnson’s wife received four hundred million dollars in a divorce settlement and then married the judge who handled the divorce proceedings.
Nothing questionable about that outcome.
Absolutely, unequivocally not. He was a BIG TIME money-guy for Bill & Hilary. You might be a little misdirected because Johnson had some unflattering things to say about Obama during the 2008 primary campaign. But, he said them while speaking at a Hilary Clinton campaign stop. Bob Johnson has been, and continues to be a Democrat.
His ex-wife, Debra Johnson (I think that's her name), although a Democrat and Obama supporter, did endorse Bob McDonnell in the VA governors race last fall. She based her endorsement primarily on economic concerns in VA.
>> the 63-year-old founder of BET
Made his money off of racism.
Couldn’t happen to a more deserving scumbag. Hope he ends up under a highway overpass.
....he aint no billionaire!!!! ha ha hahahahaha...
What happened? Obama wipe out his assets leaving him only with billions in debt?
“Indeed, three sources specifically involved with the team sale said Johnson was eager to ink a deal before an upcoming interest payment on the team’s $40 million in bank debt, so he could save the cash, even though it was only for a few million dollars”
kinda reminds me about the guy looking at the motorhome or yacht wondering miles per galon...
now, now.
Not if you’ve ever watched BET he’s not.
He hasn’t owned it since 2000 when he sold it to Viacom. He has supported the Clintons in the past, but otherwise seems to support Republicans.
>> now, now.
Now would be just fine with me.
Buying a sports team is the first thing a rich black man wants to do.
I’ve watched enough Cribs. I learned that rich blacks have “Entertainment Centers” and the few rich whites that show has featured have “Book cases”.
I see how it works. I really do.
Big Hillary supporter. Did NOT like Obama.
As a businessman, I think he saw right thru The One.
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