2023-11-05 17:24:49
Thanks to the sale of the Charlotte Hornets, NBA legend Michael Jordan enjoys an exceptional situation: he became the first professional athlete to be among the 400 richest people in America.
Since Michael Jordan first stepped on the NBA floor in 1984, his income has continued to increase. During his 15 seasons in the NBA, he pocketed 94 million dollars and was the highest paid basketball player in the league in 1997 and 1998. However, it was off the court that Michael Jordan stood out from all other athletes, earning approximately $2.4 billion (before taxes) during his career thanks to partnerships with brands such as McDonald’s, Gatorade, Hanes and of course, Nikewhere his last annual royalty check was for some 260 million dollars.
Michael Jordan, however, made his biggest move in August, when he sold his majority stake in the Charlotte Hornets at an exorbitant price of three billion dollars. Even if he had sold the franchise at the most recent valuation of Forbes ($1.7 billion in 2022), it would have been a coup for the 60-year-old former player. Instead, the NBA’s 27th most valuable franchise was sold for the second highest sale price in league history and nearly 17 times its value when Michael Jordan became its primary owner in 2010.
This places the basketball legend in an exceptional situation. With an estimated net worth of three billion dollarsMichael Jordan entered the Forbes 400 ranking. This is the first time that a professional athlete has been among the richest people in America.
“Michael is one of the few people who has done it three times,” says Ted Leonsisowner of Washington Wizards, Mystics et Capitals, who has partnered with Michael Jordan on multiple investments and sports involvements in the past. “Many entrepreneurs only succeed once. They win a big win, pocket their winnings, retire and are never heard from again, or they try something a second time and it doesn’t work. He had three big hits,” referring to Michael Jordan’s impact as a player, owner, as well as the growth of the brand Air Jordan at Nike.
The prospect of a professional sportsman becoming a billionaire is still very uncertain; only three individuals have ever done so. Michael Jordan was the first to reach this milestone in 2014, followed by LeBron James et Tiger Woods, who did so while their careers were still underway. With sports salaries skyrocketing and non-sporting opportunities multiplying, others will certainly follow, as evidenced by the fact that seven athletes, according to Forbeshave already reached $1 billion in career earnings before taxes, expenses and agent fees.
However, to join the very exclusive club of the Forbes 400, you need a perfect whirlwind of favorable circumstances. As we say Mark Cubanbillionaire owner of Dallas Mavericks, “athletes must have a lot of luck”. Michael Jordan found success upon entering the NBA.
When the first Air Jordan sneaker was released at the end of its rookie season in 1985, Nike expected to sell three million dollars worth of merchandise. Two months later, the brand’s sales reached 70 million dollars et 100 million dollars at the end of the year, according to a study carried out in 2023 by Temple University. Michael Jordan was originally signed for five years, earning $500,000 a year plus royalties. In its latest annual report, Nike reports $6.6 billion of annual wholesale revenue for the Jordan brand, i.e. increase of 28.6 % compared to the previous year.
Nike wasn’t the only company trying to capitalize on Michael Jordan’s talent and charisma. “He was a brand before we talked about human beings being brands,” says Marc Ganispresident of the consulting company Sportscorp. It wasn’t Michael Jordan promoting Gatorade, it was Gatorade saying, “Drink Gatorade to look like Michael.” »
However, soon after his second retirement from the NBA in 1998, Michael Jordan began to move away from the celebrity life. According to ESPN, he made several unsuccessful bids to buy the Hornets (which later became the New Orleans Pelicans) and the Milwaukee Bucks. He eventually joined an ownership group led by Ted Leonsis who purchased the Washington Capitals (NHL) and 44% of the Washington Wizards, and assumed the role of President of Basketball Operations underLike Pollinthen majority owner of the Washington Wizards.
“He was a sponge,” says Ted Leonsis, who remembers the basketball legend being very curious and asking a lot of questions. From selling sponsorships to , Ted Leonsis taught him everything he knew about the world of sports. “In the end, he was more right than me, which is that if you have a big team and star players, it’s easy to sell tickets, boxes and sponsorships. »
Michael Jordan’s return to the court for two seasons resulted in the sale of his stake in the team, and when he retired for the third and final time in 2003, he didn’t wait too long to buy another team. In 2006, he acquired a minority stake in the Charlotte Bobcats and, four years later, he became the first player to become majority owner of the NBA, in a deal financed primarily by debt, which valued the franchise at 175 million dollarsa considerable drop from the $300 million that BET founder, Robert L. Johnsonhad paid for the expansion team in 2003.
Despite its ultra-competitive nature, Michael Jordan’s Hornets never found success on the court (the team dropped the Bobcats name in 2014), losing in the first round of the NBA playoffs three times in the over the last 13 years. That didn’t stop Michael Jordan from riding the wave of rapid appreciation for sports franchises. In 2019, he sold 20% of the team to the founder of Melvin Capital, Gabe Plotkinand to the founder of D1 Capital Partners, Daniel Sundheimfor a value of $1.5 billion. The team was ultimately sold for double that price when the former basketball player ceded majority control to Gabe Plotkin and another hedge fund founder, Rick Schnall, two months ago. When it comes to NBA franchises, only Phoenix Suns were sold at a higher price, when the CEO of United Wholesale Mortgage, Mat Ishbiapurchased the franchise at a price estimated at four billion dollars at the beginning of the year.
“Nowadays, people say, ‘If the Hornets were sold for explains Ted Leonsis. “He got a really good deal and it helps everyone.” If he had done a street sale, people wouldn’t have been happy with him. »
Michael Jordan has retained a small stake in the Hornets, which will allow him to stay connected to basketball while looking for his next venture. Over the years, he moved into other businesses, including car dealerships, restaurants, a high-end tequila brand and, more recently, equity investments. He bought the companies CLEAR, Mythical Games, Dapper Labsto name just a few, as well as DraftKings et Sportradarboth acquired through Ted Leonsis.
For Michael Jordan’s next challenge, Ted Leonsis expects NASCAR to be a bigger part of his professional life. In 2020, the basketball legend co-founded the team 23XI Racing of the Cup Series with the driver of Joe Gibbs Racing, Denny Hamlin. “I bet you it ends up being a great deal for him, too,” says Ted Leonsis. “It’s his competitiveness and his desire to win. »
Article translated from Forbes US – Author: Justin Birnbaum
<<< À lire également : Michael Jordan fait don de 10 millions de dollars à Make-A-Wish >>>
1699206643
#FORBES #BILLIONAIRE #RANKING #Michael #Jordan #enters #Forbes #ranking #Americas #richest #people