Michael Jordan’s sale of 65% of Hornets, reportedly worth $3,000,000,000, vaults him to top of richest athlete standings
Michael Jordan is the richest athlete in history following his $3 billion sale of the Charlotte Hornets. In the sale, Jordan parted ways with an estimated 65% majority stake in the franchise, retaining approximately 5% to remain a minority shareholder.
Jordan sold his ownership in the Hornets to a group led by Gabe Plotkin, founder of Melvin Capital Management, and Rick Schnall, co-president of private equity firm Clayton, Dubilier & Rice.
"As part of the $3 billion deal, Jordan retains an undisclosed minority stake, according to the team," Amanda Albright and Devon Pendleton wrote for Bloomberg." Bloomberg’s estimate assumes he sold a 65% stake in the team and kept a less than 5% interest."
Jordan's huge wealth increase now places him atop the athletes list in terms of financial muscle. Having purchased his majority share in the Hornets for $180 million in 2010, he has seen an incredible return on investment.
Furthermore, Jordan's financial position is strengthened by the success and continued growth of the Jordan brand, which remains a premium sneak brand around the world.
"In 1984, he signed a five-year contract with Nike for $2.5 million. The first Air Jordan model was introduced soon after. Last year, Jordan Brand recorded $5.1 billion in revenue, representing almost 11% of Nike’s total sales, according to company filings," Bloomberg reported.
Since retiring from the NBA in 2003, Michael Jordan has focused on his work as a businessman. He's showing that he's just as successful and driven off the court as he was during his playing days.
Michael Jordan once lost $500,000 on a bet
When you're a multi-millionaire, temptation can sometimes get the better of you. During Michael Jordan's playing days, his fierce competitive nature saw him take a liking to gambling.
Jordan's gambling became public knowledge when it was reported that he lost $500,000 on a single bet and quickly put his exploits into the public eye. During an interview with Ahamd Rashad of NBC, Jordan explained why his massive loss wasn't the sign of a larger problem.
"I felt that it was unfair that I was considered a criminal for doing something that is not illegal. Gambling is legal, and betting is legal," said Jordan.
"For what I bet, yeah, it's a little bit more than I wanted to lose, I mean, I didn't bet to lose, but I lost it, and I paid off all my debts. I didn't want to go to NBC, anyone else, to let him know 'hey, I lost $500,000'.
The amount lost was certainly substantial, but in comparison to Michael Jordan's wealth at the time, it was minimal.
"My family's not starving. My wife, if I had a problem, would have left me. No certainly, when it came to me and say, seek help from my family, my mother and father, we're close-knit people and have monitored me when I was a kid and I was born up until where I am now and if ever had a problem, they never had a problem telling me that I have a problem," Jordan adds.
In the last two decades, Michael Jordan's wealth has continued to skyrocket. If the former Chicago Bulls champion was to lose a similar amount of money on a bet in 2023, it wouldn't even register as a blip on his bank balance, such is his financial strength now.