Michael Jordan won't be the owner of the Hornets for much longer.
According to ESPN's Adrian Wojnarowski, Jordan is in the process of selling the franchise to a group led by Gabe Plotkin and Rick Schnall. An agreement is expected to be signed soon, bringing an end to Jordan's 13-year run as majority owner of the Hornets.
The news of the sale comes at the start of an important offseason for the Hornets, who hold the No. 2 pick in the 2023 NBA Draft. The front office has reportedly discussed the team's impending sale with representation for Scoot Henderson and Brandon Miller, the two prospects the Hornets are believed to be considering for the pick.
Why is Jordan selling the Hornets? Here's what we know about the situation.
Why is Michael Jordan selling the Hornets?
The return on investment could have something to do with it.
Jordan purchased a minority stake in the Hornets in 2006. He then completed a deal to become the team's majority owner in 2010, purchasing the franchise for $275 million.
Forbes estimated before the 2022-23 season that the Hornets were valued at $1.7 billion. That ranked 27th out of 30 teams — only the Grizzlies, Timberwolves and Pelicans were below — but it was a massive increase from how much Jordan bought the team for.
For comparison, the Suns were the most recent NBA team to be sold. Mat Ishbia bought the NBA's Suns and WNBA's Mercury from Robert Sarver for $2.28 billion. Jordan is reportedly selling his stake in the Hornets for "an approximate $3 billion valuation."
The Hornets didn't achieve much success in Jordan's 13 years as majority owner. Since 2010, the Hornets have had a winning record only three times. They made the playoffs twice during that span, losing in the first round both times.
According to ESPN, the Hornets have been in the bottom half of the NBA in attendance in 13 of the last 14 seasons, the exception being in 2021 when teams had limited attendance due to the COVID-19 pandemic.
Wojnarowski adds that once the sale of the Hornets is complete, Jordan is expected to keep a minority stake and "presence" with the team. He will also reportedly oversee basketball operations through the draft and the start of free agency.
