Michael Jordan, owner of the Charlotte Hornets, answers a question during a news conference at the Spectrum Center in Charlotte, North Carolina October 28, 2014.
Jeff Siner | Tribune News Service | Getty Images
Basketball legend Michael Jordan has agreed to sell his majority stake in the National Basketball Association’s Charlotte Hornets to wealthy investors Gabe Plotkin and Jordan representative Rick Schnall confirmed on Friday.
Jordan sold the stake for $3 billion, a source close to the deal told CNBC. Jordan will retain a minority stake in the team as part of the deal.
Jordan took a majority stake in the Hornets for $275 million in 2010, having previously held a minority stake in the team. If the sale is approved, it means Jordan has made roughly 10 times his original investment.
Led by six-time NBA champion Jordan, the Hornets have struggled and only made the playoffs twice.
Plotkin acquired a minority interest in the Hornets in 2019 and served as vice governor on the NBA Board of Governors. He is the founder of the investment management firm Tallwoods Capital.
Schnall is co-president of a private equity firm Clayton, Dubilier & Rice, where he has worked for 27 years. Since 2015, he has been a minority owner of the NBA’s Atlanta Hawks and an associate governor on the NBA Board of Governors.
He is in the process of selling his investment in the Hawks, which is expected to be completed in the next few weeks.
The group of buyers also includes billionaire Dan Sundheim, owner of D1 Capital, and North Carolina musicians J. Cole and Eric Church.
The sale includes other Hornets Sports & Entertainment group assets including G-League team Greensboro Swarm; his esports team, the Hornets Venom GT; and the management and operation of the Spectrum Center where the Hornets play.
The transaction for the Hornets is subject to approval by the NBA Board of Governors.
Forbes values the Hornets at $1.7 billion, which ranks them 27th out of 30 NBA teams.
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