Michael Jordan Agrees to Sell Hornets Ownership Stake for $3B
Michael Jordan has agreed to sell his majority ownership stake in the Charlotte Hornets to a consortium led by Gabe Plotkin and Rick Schnall for roughly $3 billion, according to a source with knowledge of the transaction.
The deal still needs to be approved by the NBA’s Board of Governors.
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Jordan, a six-time NBA champion, will retain a minority stake as part of the transaction. The new group will acquire operating and management rights to the Spectrum Center in Charlotte as part of the deal, which includes NBA G-League team Greensboro Swarm and NBA 2K League team Hornets Venom GT.
Plotkin, who runs Melvin Capital Management, purchased a significant minority stake in the Hornets in 2020, along with Daniel Sundheim who is part of the new ownership group.
Dyal HomeCourt Partners is joining the new ownership, making this their third stake in an NBA team. They also have stakes in the Atlanta Hawks and Sacramento Kings. Entertainers rapper J. Cole and country music artist Eric Church are also part of the new ownership group.
Plotkin, who runs Melvin Capital Management, purchased a significant minority stake in the Hornets in 2020. Schnall, who is co-president of private equity firm Clayton, Dubilier & Rice, is in the process of selling his minority stake in the Hawks.
In 2010, Jordan bought a controlling interest in the Hornets at a $275 million valuation; he had been a minority investor in the club since 2006.
The Hornets, who have the No. 2 overall pick in next week’s NBA draft, were valued at $1.77 billion, according to Sportico’s 2022 NBA valuations.
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