NBA Hall of Famer Michael Jordan has reached a deal to sell a majority share of the Charlotte Hornets to a group led by Gabe Plotkin and Rick Schnall, a person familiar with the transaction told USA TODAY Sports.
The person requested anonymity because he was not authorized to speak publicly.
This is not a surprise. Jordan has explored selling and late in the season, Plotkin and Schnall emerged as potential buyers for a majority share.
During his NBA Finals news conference, Commissioner Adam Silver was asked about the status of a sale.
“I’m not going to speak for Michael Jordan. I never will. So, I’ll let him answer a question what his current status is,” Silver said. “I’d only say that just in the same way that it’s wonderful that one of our greatest, Michael Jordan, could become the principal governor of a team, he has the absolute right to sell at the same time. Values have gone up a lot since he bought that team, so that is his decision.”
Jordan, who will retain a minority stake in ownership, bought the Hornets in 2010 at a $180 million valuation and likely will sell his share at a nearly $2 billion valuation.
The sale is subject to the NBA Board of Governors approval.
Why is Michael Jordan selling now?
Jordan is set to make a profitable return on his investment after 13 years of ownership, and this will also open up time for Jordan to pursue interests outside of basketball.
However, Silver said in March: “One thing Michael has told me is that whether or not that transaction gets done, he will remain governor in the league, technically maybe the alternate governor instead of the governor, so he’ll still stay very involved. He’d still continue to have an interest in the league.
“I recognize that over time, people’s interests move on to other areas. He’s not living in the market right now, et cetera. So, completely understandable.
“But the good news is I think regardless of his ownership status, he will remain part and parcel of everything that this league continues to do. I have no doubt about that.”
Who are Gabe Plotkin and Rick Schnall?
Plotkin, who bought a minority share of the Hornets four years ago, was the founder and chief investment officer of Melvin Capital, the investment firm that lost billions in the 2021 GameStop short squeeze. Before that, Plotkin’s firm earned millions of dollars for investors and Plotkin, who made more than $800 million 2020, according to Bloomberg. He is now the founder the chief investment officer Tallwoods Capital.
Schnall owns a share of the Atlanta Hawks and is in the process of selling that share. He is co-president of Clayton Dubilier & Rice, a private equity firm based in New York.
Who else is part of the group buying a majority share?
According to the Hornets, the group buying a majority share will also include Dan Sundheim, Ian Loring, Dyal HomeCourt Partners, North Carolina natives recording artist J. Cole and country music singer-songwriter Eric Church, and several local Charlotte investors, including Amy Levine Dawson and Damian Mills.
How did the Hornets fare under Michael Jordan?
The focus of the new ownership group will be on turning the Hornets into a winning team. The Hornets have not made the playoffs since 2016 and have had a losing record in the six of the past seven seasons, including 27-55 in 2022-23.
They have not reached the second round since 2002 and have never played in the conference finals.
What’s next for the Hornets?
In Thursday’s NBA draft, the Hornets have the Nos. 2, 27, 34, 39 and 41 picks.
Follow NBA reporter Jeff Zillgitt on Twitter @JeffZillgitt
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