Michael Jordan is not just a winner on the basketball court. Despite retiring from professional sports, the Chicago Bulls legend has multiplied his fortune many times. From his unbeatable shoe brand to smart investments in the biggest firms, it has led him to become a billionaire athlete. Perhaps, one of the smartest investments Jordan ever made was buying the Charlotte Hornets. In 2010, MJ made a $30 million cash investment to buy a significant share of the team. 13 years later, his investment rose to $2 billion, which he smartly sold in June of this year. However, one of the investments that Jordan made with Mark Cuban doesn’t seem to be going too well.
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In 2015, Michael joined hands with Dallas Mavericks owner Mark Cuban to make a $44 million investment in Sportradar, a sports tech company. In 2022, their investment grew massively. Jordan, who had around 5% of the company with such a low investment, had a massive $350 million return. However, the company has recently suffered a huge loss and a significant cut in its market cap.
Once a smart investment, Michael Jordan is set to lose a massive sum in Sportsradar
In 2021, Sportsradar signed a massive partnership with the NBA, which gave the company data rights to the NBA, WNBA, and NBA G-League.
Apart from the NBA, the company also acquired data rights from the International Cricket Council, the International Tennis Federation, and the National Hockey League. These massive deals helped the company grow massively.
$IPOF Speculation: Hours ago, a source close to the negotiation reported @Sportradar going public via SPAC merger (potential valuation of $10-12B). Michael Jordan & Mark Cuban both invested in Sportrader back in 2015. Source claims DA could be announced this week. (1/2 tweets)👇🏼 pic.twitter.com/7g85bnXa8O
— Disrupting (@Disrupting_) March 2, 2021
However, Sportsradar has faced a significant blow in the market. Since last year, the overall valuation of the company has faced a 58.75% loss. While it was valued at $10.4 billion last year, its market cap has decreased to $3.85 Billion.
Overall, Sportradar Group AG (SRAD) has suffered a $6.55 Billion loss. in 2021, Jordan increased his investment in the company and took a position on the advisory board.
Jordan perhaps helped strike a deal between NBA and Sportsradar
The partnership that was signed between the NBA and Sportsradar is all set to come into effect once the 2023-24 season commences. With this effect, the league will have an equity stake in the company. The deal between the NBA and Sportsradar took place after Jordan took his position on the advisory board.
Despite suffering a massive loss in just one year, there is hope in the market that the value of the company will pick up once the 2023-24 NBA season begins. Having data distribution rights worldwide might help the company pick up its pace in the market.
