Michael Jordan To Sell Part of Hornets To Investors, Retains Majority Control

Post #1 » by **RealGM Wiretap** » Sat Sep 14, 2019 11:49 pm

Michael Jordan is set to sell a "large piece" of the Charlotte Hornets to two New York-based investors, according to Rick Bonnell of The Charlotte Observer.

Jordan, who currently owns 97% of the team, will retain majority ownership.

Bonnell adds that the league is expected to quickly approve of Gabe Plotkin and Daniel Sundheim as minority owners.

Forbes estimated that the Hornets were worth $1.3 billion.

Sources close to Jordan add that he plans to own the Hornets "for a long time."

Via Rick Bonnell/The Charlotte Observer

King4Day · Post #2 » by **King4Day** » Sun Sep 15, 2019 12:42 am

This has to be a good thing. I'd think major decisions will have to be approved by more than just him now

Post #3 » by **Darthlukey** » Sun Sep 15, 2019 1:24 am

DarkHawk wrote:This has to be a good thing. I'd think major decisions will have to be approved by more than just him now

Doubtful. It says he will retain control. He could sell 46% and still be virtually 100% in charge

Dr Huge Pecs · Post #4 » by **Dr Huge Pecs** » Sun Sep 15, 2019 4:21 am

Darthlukey wrote:
DarkHawk wrote:This has to be a good thing. I'd think major decisions will have to be approved by more than just him now

Doubtful. It says he will retain control. He could sell 46% and still be virtually 100% in charge

I guess mike wants to hit that billion mark...or has he already?

In other nba business news...space jam 2 out on blu ray.

#goat

Tussin33 · Post #5 » by **Tussin33** » Sun Sep 15, 2019 6:12 am

Dr Huge Pecs wrote:
Darthlukey wrote:
DarkHawk wrote:This has to be a good thing. I'd think major decisions will have to be approved by more than just him now

Doubtful. It says he will retain control. He could sell 46% and still be virtually 100% in charge

I guess mike wants to hit that billion mark...or has he already?

In other nba business news...space jam 2 out on blu ray.

#goat

Either that or this sad excuse for a basketball team is getting expensive to own lol

Post #6 » by **TheCage4** » Sun Sep 15, 2019 6:32 am

I believe Jordan surpassed the billionaire mark some time ago.

A savvy business man, undoubtedly, this should be viewed as nothing more than a financial move.

udfa · Post #7 » by **udfa** » Sun Sep 15, 2019 7:06 am

Either Jordan thinks the value of the Hornets is going to fall soon or he's overextended and needs liquidity to protect his entire financial position. Why would any owner of a class of asset whose value has been rising rapidly and continuously for the past two decades sell any share of it unless they had to?

Temuhjan · Post #8 » by **Temuhjan** » Sun Sep 15, 2019 12:03 pm

udfa wrote:Either Jordan thinks the value of the Hornets is going to fall soon or he's overextended and needs liquidity to protect his entire financial position. Why would any owner of a class of asset whose value has been rising rapidly and continuously for the past two decades sell any share of it unless they had to?

Agreed

dan-man · Post #9 » by **dan-man** » Sun Sep 15, 2019 12:35 pm

Gambling debts...

Lwcasu · Post #10 » by **Lwcasu** » Sun Sep 15, 2019 1:52 pm

udfa wrote:Either Jordan thinks the value of the Hornets is going to fall soon or he's overextended and needs liquidity to protect his entire financial position. Why would any owner of a class of asset whose value has been rising rapidly and continuously for the past two decades sell any share of it unless they had to?

Or, it's a business move. Whoever buys it may be able to offer him something in the future. Things like this happen in business all the time.

DoItALL9 · Post #11 » by **DoItALL9** » Sun Sep 15, 2019 2:25 pm

Before this transaction who owned the 3% that MJ didn't own?

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DoItALL9 · Post #12 » by **DoItALL9** » Sun Sep 15, 2019 2:27 pm

Similar move to Prokhorov? He sold a portion of the team before relinquishing it all.

If MJ sells the Hornets it'd be cool if he eventually buys the Bulls.

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jason bourne · Post #13 » by **jason bourne** » Sun Sep 15, 2019 3:44 pm

dan-man wrote:Gambling debts...

Could be. He still likes to gamble.

ItsDanger · Post #14 » by **ItsDanger** » Sun Sep 15, 2019 5:20 pm

Typically a tax move to offset realized losses against an unrealized gain(Hornets). Or initial stages of dumping the franchise. In today's NBA, these mid to low markets cannot compete for players after about 7 years of their careers.

Pickled Prunes · Post #15 » by **Pickled Prunes** » Sun Sep 15, 2019 7:15 pm

ItsDanger wrote:Typically a tax move to offset realized losses against an unrealized gain(Hornets). Or initial stages of dumping the franchise. In today's NBA, these mid to low markets cannot compete for players after about 7 years of their careers.

Only three teams that are top 10 in market size have won rings in the past 20 years. Three teams in the bottom half of the league have won in that same time frame. I'm not saying market size is irrelevant... just less relevant than it was 20 years ago.

arasu · Post #16 » by **arasu** » Mon Sep 16, 2019 12:26 am

ItsDanger wrote:Typically a tax move to offset realized losses against an unrealized gain(Hornets). Or initial stages of dumping the franchise. In today's NBA, these mid to low markets cannot compete for players after about 7 years of their careers.

The average NBA player doesn't even make it more than 5 years in, and even many elite players start to decline from injuries after 7 years. With rookie scale contracts, many of the better players can be retained long enough for a low enough cost to build a contender. By the time players become too expensive for small market teams, many of those players are over-priced anyway. The current CBA is pretty well balanced. The Hornets have been poorly managed under Jordan's ownership, but there's no real reason to think that can't turn around.

ItsDanger · Post #17 » by **ItsDanger** » Mon Sep 16, 2019 12:44 am

SInce 1984, 8 franchises have won the championship 33 out of 36 times (Boston, Los Angeles, Detroit, Chicago, Houston, San Antonio, Miami and Golden State). Statistically speaking, you're a fool to chase a championship in these small market cities.

arasu · Post #18 » by **arasu** » Mon Sep 16, 2019 1:44 am

ItsDanger wrote:SInce 1984, 8 franchises have won the championship 33 out of 36 times (Boston, Los Angeles, Detroit, Chicago, Houston, San Antonio, Miami and Golden State). Statistically speaking, you're a fool to chase a championship in these small market cities.

Info right. Conclusion dead wrong. The Spurs and Knicks kill all big/small market arguments. The end.

Pickled Prunes · Post #19 » by **Pickled Prunes** » Mon Sep 16, 2019 2:03 am

arasu wrote:
ItsDanger wrote:SInce 1984, 8 franchises have won the championship 33 out of 36 times (Boston, Los Angeles, Detroit, Chicago, Houston, San Antonio, Miami and Golden State). Statistically speaking, you're a fool to chase a championship in these small market cities.

Info right. Conclusion dead wrong. The Spurs and Knicks kill all big/small market arguments. The end.

And only 3 of those cities are in the top 10 in market size. With contracts growing and the world shrinking it is becoming more and more about quality of life off the court. So yeah, the Bucks really hope Giannis takes that super-max, but that has nothing to do with market size. Milwaukee is pretty rough during the winter months!

Vegeta10176 · Post #20 » by **Vegeta10176** » Mon Sep 16, 2019 10:12 am

Temuhjan wrote:
udfa wrote:Either Jordan thinks the value of the Hornets is going to fall soon or he's overextended and needs liquidity to protect his entire financial position. Why would any owner of a class of asset whose value has been rising rapidly and continuously for the past two decades sell any share of it unless they had to?

Agreed

Or he has realized he sucks and to bring talented ppl on board he is selling shares to have them invested.. Also if eventually going in to luxury tax to win a ring it won't all be on him..