Michael Jordan has made a bundle on Hornets investment, based on Forbes’ new estimate
Michael Jordan’s decision in 2010 to buy control of the Charlotte Hornets has been very profitable, even as the team’s record and home attendance this season lags.
Forbes, a prominent national business magazine, annually estimates the value of the 30 NBA teams. Forbes values the Hornets at $1.5 billion, a 20 percent increase over the Hornets’ estimated value a year ago. That was the fourth-highest percentage rise in Forbes’ rankings.
According to Forbes, that $1.5 billion value reflects what two New York hedge-fund executives paid in the fall for a minority share in the Hornets. The Observer first reported in September that Gabe Plotkin and Daniel Sundheim were buying a piece of Jordan’s controlling interest.
Back in 2010, Jordan paid about $175 million in cash and debt assumption to buy control from Bob Johnson. The Hornets haven’t prospered on the court since then, with three playoff appearances and no rounds won. However, Jordan’s investment has soared to an extent he took some profit from the appreciation with September’s sale.
The Hornets are rebuilding this season (a 17-36 record), following All-Star point guard Kemba Walker’s departure for the Boston Celtics. That is reflected in home attendance: The Hornets’ home average, 15,309, is 29th among 30 NBA teams, ahead of only the Minnesota Timberwolves’ 14,592.
But the team does have a national profile, in part due to Jordan’s history as an iconic player. Also, the team had a successful re-brand to Hornets, from Bobcats, after the name of Charlotte’s original NBA team was discarded by the now-New Orleans Pelicans.
The Hornets lobbied for, and were chosen as, one of two teams that played the first regular-season game in Paris; the Hornets and Milwaukee Bucks played there last month, with Jordan joining NBA commissioner Adam Silver at a pregame media appearance.
Forbes projected the Hornets produced $240 million in revenue last season (including millions in revenue-sharing from the NBA as a small-market team), resulting in $39 million in operating income.
Based on Forbes’ ranking, the Hornets are the 25th-most valuable franchise in the NBA. Forbes ranked the New York Knicks the NBA’s most valuable franchise at $4.6 billion.
This story was originally published February 11, 2020 at 10:58 PM.
