Michael Jordan, richest basketball player in history with $3.5 billion fortune | Charlotte Hornets | NBA | World

Jordan, who led the Chicago Bulls to six NBA championships and five MVP awards, was a cultural icon, from his silhouette in sneakers to the smiling face on a collectible $100 box of cereal. Image is everywhere.

In 2010, the Hall of Famer bought a majority stake in the Hornets (then called the Bobcats), becoming just the second black owner in the league to own a team.

But it was in the 1980s, when Jordan was still relatively unknown, that a licensing deal with Nike laid the foundation for his seminal fortune.

The sale of Jordan’s stake in the Hornets comes after a remarkable 2022 sports team deal that confirmed the NBA’s status as one of the most lucrative leagues in the world.

The value of its franchises has soared in recent years as billionaires have leveraged their vast fortunes to become owners.

Also read: Major League Soccer’s “patron” recognizes the value that “Messi mania” brings to American soccer.

Mat Ishbia, founder of wholesale mortgage lender UWM Holdings Corp, agreed last year to buy more than 50 percent of the Phoenix Suns in a record deal that valued the club at $4 billion.

Jordan sold his stake in the Hornets to a group led by Melvin Capital Management founder Gabe Plotkin and investment firm Clayton, Dubilier & Rice co-chairman Rick Schnell.

Jordan retained an undisclosed minority stake as part of the $3 billion deal, according to the team. Bloomberg estimates that the basketball figure sold 65 percent of the team, leaving less than 5 percent.

‘Now is the perfect time to hand over power’Jordan, 60, said in an Aug. 3 letter to Hornets fans. “I’m excited to see what lies ahead, and I look forward to supporting the team and community in my new role for many years to come.”

A spokesman for Jordan’s investment office declined to comment for this article.

Also read: Celtics land Jaylen Brown on NBA-history million-dollar deal

mom’s advice

Aside from the Hornets, most of Jordan’s wealth comes from his successful Nike Jordan Brand apparel line, which was the subject of this year’s Ben Affleck-directed film “Air.”

His mother, Delores Jordan, was instrumental in making the deal, according to Jordan, who appeared on ESPN and Netflix’s documentary series “The Last Dance.”

“My mom said, ‘Listen to it. You may not like it, but you will listen to it.'” Jordan said during the series.

In 1984, he signed a five-year, $2.5 million contract with Nike. Soon after, the first Air Jordan model was released. Jordan Brand had revenue of $5.1 billion last year, accounting for nearly 11 percent of Nike’s total sales, company filings show.

Also read: Cristiano Ronaldo invests in luxury watch sales platform

Thilo Kunkel, director of the Sports Industry Research Center at Temple University, said: “Wild Guess” About how much money Jordan made through Nike.

Typically, these types of deals include royalties and bonus-like payments when certain sales thresholds are met.

“If it were its own brand, it would have a pretty decent market cap and could compete with some of the Under Armors in the world.” Kunkel pointed out. “Now it’s almost like a luxury sports brand.”

Bloomberg Index calculations estimate he earns a 5 percent royalty on Air Jordan sales, as well as income from endorsement deals and NBA salaries. Nike did not respond to a request for comment on Jordan’s earnings.

Also read: From Jordan to LeBron Winbanyama: A Brief History of the NBA Draft

Thanks to your Management subscription, you can take advantage of the Subscriber Club discount multiple times. More than 300 promotions are waiting for you, discover them here. If you are not already a subscriber, please purchase your plan here