Michael Jordan Eyeing Selling Majority Stakes in NBA Hornets
Michael Jordan is reportedly in the middle of "serious talks" to sell the majority stakes of the Charlotte Hornets of the NBA.
Bleacher Report noted that Jordan would retain a small stake in the franchise while Gabe Plotkin, a minority owner of Hornets, and Rich Schnall, who is a minority owner of the Atlanta Hawks, would become co-governor.
The reported sale of the majority stakes of Hornets came from ESPN's Adrian Wojnarowski.
Jordan is seen to earn a significant profit on the $275 million he spent to purchase Hornets from Bob Johnson in 2010 whether he decides to sell now or at another date down the road.
The team was valued at $1.77 billion in December.
He was a minority owner in 2006 shortly after his playing career ended. The team has made the playoffs just three times since the Hall of Fame NBA player took over as the majority owner, according to Yahoo! Sports.
Meanwhile, it was not immediately clear how much of the franchise Plotkin already owns.
The former NBA star sold a minority stake to Daniel Sundheim, who is expected to be part of the new ownership group, and Plotkin in 2020.
Aside from the minority ownership, Sundheim founded the D1 Capital.
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Sale of NBA Charlotte Hornets
NBC Sports projected that it could be a good time to buy in on the Hornets as the NBA is expected to have a new labor deal soon, which would be followed by a new national television deal, bringing income and stability to the league.
However, sources noted that no deal is "imminent," but that there is significant momentum on a sale that would eventually install "Plotkin and Schnall as the co-governors of the Hornets."
Jordan assumed $150 million of the franchise's debt when he bought the majority of the team, which meant he paid $30 million in cash at the time.
NBA Hornets
The Charlotte City Council approved a $275 million deal that would renovate Spectrum Center and build a practice facility for the Charlotte Hornets. It would also extend the team's lease by 15 years to 2045.
The $215 million would be coming from the city's tourism funds and go to the Spectrum Center's renovations while $60 million would come from whoever receives naming rights for the creation of a sports and entertainment district.
Starting in 2024, the Hornets will start paying $2 million per year in rent in 2030 and $1.1 million in capital investments.
Its value was estimated to be $1.7 billion, with revenue worth $269 million. The team has an operating income of $94 million, with player expenses of $105 million, as detailed by Forbes.
Essentially Sports noted that Jordan was reported to have added value to Charlotte Hornets' value in nine years, which was worth more than $800 million.
Jordan sold a minority stake in 2019, which increased Hornets' value to $1.3 billion.
The team's value also propelled Jordan's net worth to over $2 billion.
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This article is owned by Latin Post.
Written by: Mary Webber
WATCH: Michael Jordan in ‘serious talks’ to sell majority stake of Hornets, ESPN reports - from Queen City News