NBA Approved Michael Jordan’s $3 Billion Charlotte Hornets Sale
According to a source familiar with the transaction, the NBA Board of Governors gave its blessing over the weekend to Michael Jordan’s $3 billion sale of the Hornets to a company managed by Gabe Plotkin and Rick Schnall. ESPN initially reported the news.
The Charlotte Hornets now have a new owner in place.
The Charlotte Hornets now have a new owner in place. According to a source familiar with the transaction, the NBA Board of Governors gave its blessing over the weekend to Michael Jordan‘s $3 billion sale of the Hornets to a company managed by Gabe Plotkin and Rick Schnall. ESPN initially reported the news.
Following the Phoenix Suns‘ record-breaking $4 billion sale to Mat Ishbia’s ownership group in February, this is the second big NBA club deal in the last year.
Alongside Schnall, a former Atlanta Hawks minority owner, Plotkin, who had been a minority owner of the Hornets since 2019, will now serve as governor. Along with J. Cole, a local rapper, and Eric Church, a country singer, the group includes Daniel Sundheim, Ian Loring, Damian Mills, and Amy Levine Dawson.
The new firm also includes Dyal Homecourt, a fund that invests in NBA franchises. The Dyal Capital-managed company owns the Hawks, Hornets, and Sacramento Kings. The valuation of NBA franchises is driven by private equity, which is the most recent illustration of that. Jordan, who purchased the club in 2010 for $275 million and was the league’s sole majority-Black owner, is seeing good returns on his investment.
While Schnall is co-president of the private equity company Clayton, Dubilier & Rice, Plotkin founded the investment firm Melvin Capital Management. In addition to establishing the hedge fund D1 Capital Partners, Sundheim was a minor shareholder in the previous Hornets ownership group. In 2019, they both invested at a valuation of $1.5 billion and had the option to increase their investment whenever Jordan opted to sell.
The Charlotte Hornets had yet to make the playoffs since 2016 when they finished 27-55. With new stars like guard Brandon Miller, who was selected second overall out of Alabama last month, they are trying to reverse their fortunes under new management. LaMelo Ball, the franchise’s star, and Miller will play together in the backcourt.
