Michael Jordan, owner of the Charlotte Hornets and one of the world’s most storied athletes, has agreed to sell his majority stake in the NBA team to a group led by Gabe Plotkin and Rick Schnall, two private equity investors.
The team as a whole was valued at $3 billion under the terms of the deal, according to a person familiar with the details who was not authorized to discuss them publicly and spoke on condition of anonymity. The team, in its sale announcement, did not disclose what percentage of its stake Jordan would sell, but said it would remain a minority investor.
The acquiring group also includes country music star Eric Church and rapper J. Cole, both from North Carolina.
Jordan won six championships with the Chicago Bulls in the 1990s and is considered by many to be the greatest basketball player in history. A representative for Jordan did not respond to a request for comment.
Jordan, a North Carolina native, bought the team in 2010 for $275 million, when it was known as the Bobcats.
It is the only black majority owner in the league, although the majority of its players are black men.
“I would love to have better representation in terms of senior governors,” NBA Commissioner Adam Silver said at a news conference before the NBA Finals.
Silver said team owners have been trying to add diversity to their investment groups, noting that several former black players have joined ownership groups with smaller stakes, including David Robinson, Grant Hill, Shaquille O’Neal and Dwyane Wade.
NBA team valuations have skyrocketed recently and more owners have been willing to sell. The sale of the Hornets will be the third major NBA ownership change in the past year.
In December, a group led by Mat Ishbia bought a majority stake in the Phoenix Suns and Phoenix Mercury, including all shares that had belonged to Robert Sarver, the former owner who was suspended by the league for widespread workplace misconduct. . As part of the deal, Ishbia’s group also bought the shares of Dyal HomeCourt Partners, a group that is among the investors buying Jordan’s stake in the Hornets. The Suns and Mercury were valued at $4 billion in that deal, according to people who were not authorized to speak publicly on the matter.
In April, former Milwaukee Bucks co-owner Marc Lasry sold his share of the Bucks to Cleveland Browns owners Jimmy and Dee Haslam. The Bucks were valued at $3.5 billion as part of the deal, according to a person familiar with the deal.
The Hornets have made the playoffs just twice in the seasons since Jordan bought the team; they lost in the first round both times.
They seemed on their way to building around a young core that included Miles Bridges and LaMelo Ball. Bridges was a restricted free agent last summer, but the Hornets halted plans to re-sign him after he pleaded guilty to felony domestic violence. The NBA suspended Bridges without pay for 30 games, 10 of which will be served next season.
This season, the Hornets had the fourth worst record in the league and the second worst in the Eastern Conference. They improved by two spots in the draft lottery and have the second pick in this month’s draft.
