Michael Jordan has reportedly agreed to sell his majority stake in the Charlotte Hornets to a group led by Gabe Plotkin and Rick Schnall for $3 billion. The deal will end Jordan’s 13-year run as majority owner, according to ESPN.
Plotkin, who acquired a minority stake in the Hornets in 2019, and Schnall, co-president of Clayton, Dubilier & Rice LLC will become the franchise’s governors once the NBA completes its vetting and approval process.
A statement on the deal noted that Plotkin has been an alternate governor on the NBA Board of Governors since 2019 and is the founder and chief investment officer of Tallwoods Capital LLC.
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Schnall, on the other hand, has worked for 27 years as co-president of Clayton, Dubilier & Rice LLC.
He is also a minority owner of the Atlanta Hawks and has been an alternate governor on the NBA Board of Governors since 2015. The statement adds that he is in the process of selling his investment in the Hawks, which is expected to be completed in the next several weeks.
The Buyer Group, a statement on the deal noted, will also include Chris Shumway, Dan Sundheim, Ian Loring, Dyal HomeCourt Partners, and North Carolina native recording artist, J. Cole. Others include country music singer-songwriter, Eric Church, and several local Charlotte investors like Amy Levine Dawson and Damian Mills.
“As part of the transaction, Jordan will retain a minority ownership share of the team,” the statement added. “The transaction is subject to the approval of the NBA Board of Governors. Along with the Hornets, HSE ownership includes the Greensboro Swarm (NBA G League) and Hornets Venom GT (NBA 2K League), as well as managing and operating Spectrum Center, each of which is included as part of the sale.”
Jordan is one of the richest black people in the world, with an estimated net worth of $2 billion, according to Forbes. He makes a chunk of his money from his over 36-year partnership with Nike. The deal alone earned him $1.3 billion.
The basketball legend also has other streams of income, including his stake in the Charlotte Hornets, a professional basketball franchise in Charlotte, North Carolina, and a minor stake in DraftKings.
