Forty years ago, in 1984, Michael Jordan and Nike Inc. forged an incredible partnership. It was regarded as one of the most excellent sporting deals. The partnership has gained MJ and Nike incredible profits and propelled their global image beyond comprehension. However, compared to his profits from Nike over his lifetime, Jordan will make way more money after selling his stake in the Charlotte Hornets. As per ESPN’s Adrian Wojnarowski, Jordan has agreed to sell his share for approximately $ 3 billion valuation to a group led by Gabe Plotkin and Rick Schnall. This will earn Jordan over $2 billion in profits from the sale.
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There is no doubt that MJ and Nike’s partnership has been one of the most profitable collaborations between an athlete and a shoe company. However, MJ’s profits from selling a relatively unsuccessful NBA franchise dwarfs all his earnings from Nike in the past four decades.
Michael Jordan will earn $2 billion in profits from his sale of the Charlotte Hornets’ share
Michael Jordan’s sources of earnings can be pretty surprising and unconventional for an athlete of his time. Even though he earned over $94 million from his NBA career, his earnings from Nike comprise most of his net worth.
As of 2020, Jordan has earned over $1.3 billion from his Nike deal. Jordan earned $256 million as a 5% royalty from Nike in 2022, almost double his NBA career earnings.
Jordan’s net worth is estimated at $2 billion, with significant contributions from his other business ventures. His versatile portfolio includes NASCAR team ownership, investments in NBA Top Shot and Draft Kings, business interests in several golf courses, and the now-sold majority stake in Charlotte Hornets. Selling his stake will earn him another $2 billion in profit, as Joe Pompliano reports.
Jordan will earn massive profits despite his team being relatively unsuccessful during his 13-year ownership tenure. Under Jordan, the Hornets have never won a playoff series, never finished higher than 6th in the Eastern Conference, and have the 5th worse winning percentage in the NBA.
Michael Jordan selling his stake in Charlotte Hornets for ten times the valuation he had paid!
In 2010, Michael Jordan, a North Carolina native, purchased a majority stake in the then-Charlotte Bobcats for $180 million. He already owned a minority stake in the franchise since 2006.
This deal made him the first former player to become a majority owner and the league’s only Black majority owner. However, the sale of his share has now earned him ten times the valuation than he had paid.
The group that has agreed to purchase his stake for the $3 billion valuation includes majority ownership from hedge fund founder Gabe Plotkin and private equity firm president Rick Schnall. Furthermore, the buying group includes rapper J.Cole and country music artist Eric Church, who will gain a minority ownership from the sale.
