Jordan Sells Charlotte Hornets for US$ 3 Billion
Posted on 06/21/2023
After weeks of speculation, the Charlotte Hornets will be sold by basketball great Michael Jordan to hedge fund manager Gabe Plotkin of Melvin Capital Management and the co-president of Clayton Dubilier & Rice, Rick Schnall, minority owner of the Atlanta Hawks. The purchase price will be US$ 3 billion. Jordan’s purchase price was US$ 275 million 13 years ago. This is one of the richest deals in NBA history. Jordan will retain a minority ownership stake after the sale.
The two richest U.S. pro sports deals ever were recent sales of the NFL’s Washington Commanders for US$ 6 billion and the Denver Broncos for US$ 4 billion.
Melvin Capital famously suffered during the meme stock phenomenon of 2021, losing US$ 6.8 billion on its short position in GameStop. At the time, GameStop was the most shorted stock in the world. Melvin Capital has at least nine lawsuits pending.