Michael Jordan’s Struggle as an NBA Franchise Owner: The Last Sale for Triumph Economically

Michael Jordan He is still considered the greatest basketball player of all time. He is also the one who amassed the greatest fortune thanks to his advertising contracts and, above all, the royalties he generates through Jordan Brand (owned by Nike), which bills more than 5,000 million dollars annually. But the former athlete, who was always a born winner, also sought glory as an NBA franchise owner. Far from achieving it in sports, he has not come out of the well in ten years, now last sale so that the triumph comes economically.

He 23 bought 65% of the Hornets in 2010 from Robert Johnson for 180 million dollars (167 million euros) and later took over the rest of the capital with an investment total of 275 million dollars (255.5 million euros). The economic terms of the operation are unknown, but Sporty values ​​the franchise at 1,770 million dollars (1,644 million euros) and its estimates have always been somewhat below the final price set in transactions closed since 2021.

The Hornets have been the last team to join the NBA. The league approved its expansion to the current 30 teams in 2004-2005. in front was Robert Johnson, and in June 2006 it was announced that Jordan would be the second largest shareholder. Far from boosting their projection, the Hornets have been one of the worst teams of the past decade.

Since 2010 they have never finished a season in the top 15 in arena attendance. The last campaign in which they were among the ten franchises with the most staff spending was in 2016-2017, and they have been characterized by a constant rebuilding process and the lack of big stars. In fact, they have only reached the play-offs in three seasons.

The reason for the sale lies mainly in the strong revaluation of the NBA franchises and other North American leagues. The latest sales of Suns and Bucks are estimated at 4,000 million And, although the Hornets are far away, it represents a revaluation of almost seven times compared to when Jordan became a majority shareholder. The average valuation of NBA franchises exceeds 3,000 million dollars (2,790 million euros) and has also multiplied by seven in the last decade.

Michael Jordan is the only former player and the only African-American to own

The reality is that Jordan had already prepared his departure as owner years ago. In September 2019 he owned 97% of the shares and sold a large stake to Daniel Sundheim y Gabe Plotkin. The economic terms and the percentage of the capital sold were never revealed, but Jordan would remain the main shareholder.

Now Plotkin, who was already the second partner of the Hornets, prepares an offer with Rick Schall to gain control of the franchise. Jordan will keep a small percentage of shares to remain attached as a member of the board of directors. However, his role will be testimonial and more institutional, since no minority has hardly any power in decision-making.

In fact, the strong revaluation of the franchises and the limited role played by the minority groups is what made the NBA make a move and allow the entry of investment funds before the pandemic. This year it went one step further to allow the entry of other institutional funds, opening the door to Qatar or Saudi Arabia, among others. The objective is for minority shareholders to play a more prominent role, mainly with economic injections in a context of financial difficulty and, in return, have more weight in management than a traditional minority would have.

That is what could happen with Jordan, whose figure transcends the barriers of sport. Charlotte is also the city in the state where raised his fame and empire, since his university was that of North Carolina. In other words, the symbolic link further complicates the possibility of total sale or even abandoning the ship in the middle of the reconstruction process. Hence the sale is still being prepared as a moderate transition.

Currently the Hornets are the fifth least valuable franchise in the NBA, only ahead of the Thunder, Timberwolves, Grizzlies and Pelicans. Its turnover is estimated to be between 200 and 250 million dollars (186 and 232 million euros).

Michael Jordan He is still considered the greatest basketball player of all time. He is also the one who amassed the greatest fortune thanks to his advertising contracts and, above all, the royalties he generates through Jordan Brand (owned by Nike), which bills more than 5,000 million dollars annually. But the former athlete, who was always a born winner, also sought glory as an NBA franchise owner. Far from achieving it in sports, he has not come out of the well in ten years, now last sale so that the triumph comes economically.