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NBA: Michael Jordan has picked the PERFECT time to sell the Charlotte Hornets

admin 20 4 月, 2023 18 min read

For the second time in his illustrious life, Michael Jordan is divesting from an NBA team.

The first time came back in 2001, when Jordan sold his 10-percent stake in the Washington Wizards to comply with NBA rules against player-owners as he made a forgettable comeback in the nation’s capital. Although the details of that sale have been lost to history, Statista.com puts the value of the Wizards at $278million as far back as 2003, which was fairly typical for the time.

Now he’s selling his majority stake in the Charlotte Hornets – a middling small-market club that’s sold only 89.4 percent of its home tickets this season (26th of 30 teams). They currently sit in 14th place in the Eastern Conference at 24-51 and are on their way to missing the postseason for a seventh straight season.

But despite those obvious drawbacks for potential bidders, Jordan’s timing on the sale is as flawless as his fadeaway.

Forbes now values the whole club at $1.7 billion, which is just 27th among NBA teams, but a roughly 443-percent increase from 2010, when Jordan bought media mogul Bob Johnson’s 65-percent stake for $275 million. If and when he does sell his shares to a group led by minority owner Gabe Plotkin and investor Richard Schnall – currently the only reported bidders – Jordan stands to make a sizeable profit, while sidestepping the ongoing bankruptcy of the team’s local media partner.

Charlotte is just 419-595 since Jordan became majority owner in 2010. The team has only two playoff berths in his 13 seasons at the helm, and the Hornets have never reached the second round of the postseason

NBA Legend and Charlotte Hornets Owner, Michael Jordan looks on during a game between the Indiana Pacers and the Charlotte Hornets on November 5, 2019 at Spectrum Center in Charlotte

Charlotte is just 419-595 since Jordan became majority owner in 2010. The team has only two playoff berths in his 13 seasons, and the Hornets have never reached the second round

The Hornets are young, but they do boast 2021 NBA Rookie of the Year LaMelo Ball (pictured)

The Hornets are young, but they do boast 2021 NBA Rookie of the Year LaMelo Ball (pictured) 

Diamond Sports Group, which owns 10 cable networks under its Bally Sports banner, filed for bankruptcy earlier this month after missing a $140 million interest payment in February.

For now, the Sinclair Broadcast Group-owned company is current on its payments to hockey and basketball teams, while it reportedly tries to renegotiate deals with MLB clubs, according to the AP.

But beyond putting the future media rights of 42 MLB, NHL and NBA teams in jeopardy, the bankruptcy represents a near-existential threat to the three leagues. Teams like the Hornets, whose games are aired on Bally Sports Southeast, rely heavily on cable, and the NBA attributed 13 percent of last season’s earnings to local media deals. 

According to Sports Business Journal, the NBA has the option to stream games on a competing service if Diamond misses any rights payments, which guarantees that fans will continue to see their favorite teams.

But Diamond’s deal with the NBA ends after the 2024-25 season, along with national cable deals with ESPN and Turner, and the soaring franchise valuations could taper off if local cable channels can no longer afford broadcast rights.

Besides, the spike in team values enough of a reason to sell the Hornets in the first place. Even with the struggling regional service networks (RSNs), the soaring popularity and legalization of sports gambling as buoyed asking prices for all NBA teams.

Mortgage mogul Mat Ishbia bought a majority stake in the Phoenix Suns and WNBA’s Mercury from Robert Sarver for $4billion in December. And Sarver may have been able to hold out for even more, had he not been a motivated seller following his NBA suspension over hostile workplace claims.

In 2019, Alibaba co-founder Joe Tsai bought the remaining 51 percent of the Brooklyn Nets from Russian oligarch Mikhail Prokhorov for a reported $3.4billion after previously buying 49 percent of the team for $2.3billion in 2018.

Diamond Sports Group, which owns 10 cable networks under its Bally Sports banner, filed for bankruptcy earlier this month after missing a $140 million interest payment in February

Diamond Sports Group, which owns 10 cable networks under its Bally Sports banner, filed for bankruptcy earlier this month after missing a $140 million interest payment in February

The Hornets' value can only be helped by the NBA Draft Lottery on May 16, when Charlotte will have a 12.5-percent chance of getting the top pick and taking Victor Wembanyama (left)

The Hornets’ value can only be helped by the NBA Draft Lottery on May 16, when Charlotte will have a 12.5-percent chance of getting the top pick and taking Victor Wembanyama (left)

And the Hornets’ value can only be helped by the NBA Draft Lottery on May 16, when Charlotte will have a 12.5-percent chance of getting the top pick and taking 7-foot-4 French sensation Victor Wembanyama.

A ‘generational talent,’ according to LeBron James, the 19-year-old is expected to become a franchise cornerstone for one lucky team, due to his size, athleticism, and a diverse skillset. Not only can he post up smaller players down low, but Wembanyama is also capable of dribbling like a guard and shooting step-back 3-pointers.

Coupled with Hornets point guard LaMelo Ball, the 2021 NBA Rookie of the Year, Wembanyama could turn the team into an international attraction, drawing interest on both sides of the Atlantic, or for that matter, the Pacific.

Wembanyama of Metropolitans 92 dunks during the Betclic Elite match between Metropolitans 92 and Nancy this month

Wembanyama of Metropolitans 92 dunks during the Betclic Elite match between Metropolitans 92 and Nancy this month

A Hornets sale is not expected to take place before the NBA Draft Lottery, but the annual event could serve as a deal sweetener if the team comes away with the first pick.

But perhaps Jordan’s best reason for selling the team would be his struggles as an owner.

He won six NBA titles and five MVP awards with he Chicago Bulls, turned himself into a billionaire with his Nike brand, and has parlayed that success into his philanthropy, but team ownership has proven to be a struggle for Jordan.

Charlotte is just 419-595 since Jordan became majority owner in 2010. The team has only two playoff berths in his 13 seasons at the helm, and the Hornets have never reached the second round of the postseason.

Along the way, Jordan has watched a revolving door of coaches pass through Charlotte, including Larry Brown, Paul Silas, James Borrego and Steve Clifford, who is currently in his second stint with the team.

But by downgrading to a minority share of the Hornets, and perhaps retaining some role with the team, the 60-year-old grandfather can save himself the headaches of NBA ownership. He won’t have to worry about revenue, cable contracts, or angry fans, and can instead focus on his other ventures, like his Nike brand or new NASCAR team.

In any case, a deal is not imminent, according to a statement from Jordan’s company, Jump Management.

But if he does decide to move on, Jordan may not find a better opportunity.

sports lottery

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The early settlement function is only applicable to some live betting markets, and members can make early settlement when the betting is live. Please forgive me if you find any inconvenience caused by "all transactions will be canceled after a live ball is scored".
The advance settlement amount already includes the principal, please note!
The "Odds" or "Markets" for all events determine the amount of early settlement. If the amount changes or the opening of the market is suspended during early settlement, it may lead to the failure of early settlement. If the event has not yet concluded, the early settlement function may appear again.
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If the bet that was successfully settled in advance is canceled for some reason (such as VAR assistance-goals are not counted), the amount of the bet that was settled in advance will be deducted from the member's account. If the event has not ended yet, the early settlement function may appear again, otherwise the betting will be based on the event or official final result. The company reserves the right of final interpretation, please pay attention!
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In case of event cancellation or cut in half, the bets settled in advance after the interruption of the event will be cancelled, the amount settled in advance of the bet will be deducted from the member's account and the original betting amount will be returned; the bets settled in advance before the interruption of the event will still be considered It is a "valid bet slip".

Sports Event Casino Handicap Description

PK0It means not giving in to each other, and winning 1 point wins all.
0-500/0.5Indicates that when the handicap team is tied with the transferee team, the team betting on the handicap loses 50%.
0 loss0.5Indicates that when the handicap team is tied with the transferee team, the team betting on the handicap loses.
1+500.5/1When the handicap team wins the handicap team by 1 point, the team betting on the handicap wins 50% and wins all 2 points.
1 level1Indicates that when the handicap team wins the handicap team by 1 point, the two teams will tie and win by 2 points.
1-501/1.5When the handicap team wins the handicap team by 1 point, the team betting on the handicap loses 50% and wins all 2 points.
1 loss1.5When the handicap team wins the handicap team by 1 point, the team betting on the handicap loses all and wins by 2 points.
2+501.5/2When the handicap team wins the handicap team by 2 points, the team betting on the handicap wins 50% and wins all 3 points.
2 flat2Indicates that when the handicap team wins the handicap team by 2 points, the two teams will tie and win all 3 points.
2 losses2/2.5When the handicap team wins the handicap team by 2 points, the team betting on the handicap loses 50% and wins all 3 points.
3+502.5When the handicap team wins the handicap team by 2 points, the team betting on the handicap loses all and wins all 3 points.
3 losses2.5/3When the handicap team wins the handicap team by 3 points, the team betting on the handicap wins 50%, and all 4 points win.
3 levels3Indicates that when the handicap team wins the handicap team by 3 points, the two teams will tie and win all 4 points.
3-503/3.5When the handicap team wins the handicap team by 3 points, the team betting on the handicap loses 50% and wins all 4 points.
3 losses3.5When the handicap team wins the handicap team by 3 points, the team betting on the handicap loses all and wins all 4 points.
Sports Event Casino Handicap Description

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