Make no mistake, Michael Jordan wasn’t hurting for money before owning the Charlotte Hornets (then Bobcats) and he certainly isn’t now.
Jordan is reportedly worth somewhere in the neighborhood of $2 billion. That’s billion with a “b.”
But if Jordan’s rumored sale of the Charlotte Hornets goes through, he could be in line for a come up of absolutely epic proportions.
Michael Jordan Stands To Make Insane Profit On Charlotte Hornets Sale
Brian Werner of Celebrity Net Worth reports that Jordan stands to profit more than 10-fold from his initial investment in the team if he were to sell.
In 2006 Michael bought a minority stake in the Bobcats from Robert L. Johnson.
In 2010 Michael bought out Robert entirely to become the team’s majority owner. The price he paid in 2010 for roughly 90% of the team?
Put another way, in 2010 Michael’s acquisition valued the Hornets (then called the Bobcats) at $233 million total overall.
Jordan’s investment in 2010 certainly wasn’t chump change. Especially not for us peasants over here working a normal job. But by sports team owner standards, it wasn’t exactly a fortune.
Now, if a sale goes through, Jordan stands to turn that investment into a much, much higher number.
How Much Will Michael Make?
Let’s assume the Hornets sell for $2 billion. That would mean an 80% stake would be worth $1.6 billion. Let’s assume between purchase costs and other operational costs Michael has spent $250 million over his years as owner. That leaves $1.35 billion in taxable gains. Michael’s primary residence is Florida, which does not have a state tax. After my quick napkin math, Michael will clear around
That’s $1.1 billion after taxes direct deposited into his bank account. For a team that has made the playoffs just three times under his 17 seasons of ownership (losing in the first round each time) and only had four total seasons with winning records. Even with that performance, he’ll walk away with a bit more than a billi profit. If this doesn’t cement Michael’s status as the GOAT of all GOATS, nothing will.
Now, we all know MJ likes to gamble. But it appears this is one gamble that paid off in a big, big way. The GOAT already secured his legacy in the basketball world. Now it appears he may be ready to do so in the investing world as well.