Michael Jordan is the richest NBA player in history

Bloomberg— Michael Jordan He is the greatest basketball player in history. And he is also the richest.

This month, when the NBA (National Basketball Association) legend sold his stake in the Charlotte Hornets, consolidated its net worth of approximately US$3.5 billion.according to the Bloomberg Billionaires Index, which calculates his wealth for the first time.

Jordan who led the Chicago Bulls to victory 6 championship titles and 5 MVP awards. (Most Valuable Player) is a cultural icon and his image is universal, both in the silhouette of his sneakers and in his smiling face on boxes of Wheaties (cereals) that can be purchased for $100. This Hall of Famer became the first black owner in the American League in 2010 when he acquired a majority stake in the Hornets, then known as the Bobcats. However, had a licensing agreement with Nike Inc. (NKE) in the 1980s, when Jordan was still little known, which laid the foundation for his staggering fortune.

This sale of Michael Jordan’s stake in the Hornets comes shortly after an outstanding 2022 in terms of team deals and confirms the NBA’s position as one of the most profitable leagues in the world. Over the past few years, the value of these franchises has skyrocketed due to billionaires pouring their vast resources into their ownership. In 2022 mat ishbiyawho founded wholesale mortgage lender UWM Holdings Corp, agreed to buy more than 50% of Phoenix Suns in a record deal that valued it at $4 billion.

Jordan sold his property in the Hornets to a group led by Gabe Plotkin, founder of Melvin Capital Management and Rick Schnall, co-chairman of private equity firm Clayton, Dubilier & Rice. As part of the $3 billion deal, Jordan retains an undisclosed minority stake, according to the team. Bloomberg estimates that he sold 65% of the team’s shares and was left with less than 5%.

“Now it’s time to hand over the reinsAbout this 60-year-old Jordan wrote on August 3 in an open letter to Hornets fans. “I look forward to seeing what the future holds for us and I look forward to supporting the team and community in my new role for many years to come.”

A spokesman for Jordan’s family office declined to comment on the story.

mom’s advice

Aside from the Hornets, most of Jordan’s wealth comes from his successful Jordan Brand clothing line at Nike, which was the subject of the film. air this year director Ben Affleck . His mother, Deloris Jordanwas instrumental in closing this deal, Jordan said in the docu-series. Last dance (The Last Dance), which aired on ESPN and Netflix.

“My mother said: “You will go and listen. You may not like it, but you will go listen,” Jordan said in the documentary series.

In 1984, he signed a five-year, $2.5 million contract with Nike.. Shortly thereafter, the first Air Jordan model was introduced. Last year, Jordan Brand reported $5.1 billion in revenue.which, according to company documents, accounts for almost 11% of Nike’s total sales.

Thilo Kunkel, director of Temple University’s Sports Industry Research Center, said there were “wild speculations” about how much Jordan made from Nike. All in all, These transactions include royalties and bonus payments upon reaching certain sales thresholds.

“If it were its own brand, it would have a pretty decent market cap that could compete with some of the Under Armor brands in the world,” he said. “Is almost like a luxury sports brand At the moment”.

Calculating the Bloomberg Index he is estimated to have earned 5% royalties on sales from Air Jordan, as well as income from advertising deals and his salary in the NBA. Nike did not respond to requests for comment on Jordan’s earnings.

like mike

In recent years, other athletes have made their own long-term branding deals with sportswear lines in the hope of being “like Mike”. In March, Under Armor Inc. announced that she had reached a long-term agreement with the NBA star. Steph Curry for your Curry brand, which includes annual cash payment, benefits, royalties and shares. And an NBA star LeBron James made a fortune of approximately $1.5 billion thanks to sponsorship, investments and own consumer and entertainment businessSpringHill Co., according to index.

Simeon Siegel, An analyst at BMO Capital Markets stated that the Jordan brand “outdid” him as a player. Many of his clients too young to see him play professional basketball.

“Jordan as a person and Jordan as a brand helped shape Nike as well as the entire sports industry,” he said.

Then there are other backups. He signed a 10-year, $13.5 million contract with Gatorade, which led to the famous 1991 TV commercial called “Be Like Mike”. Ha appeared on Wheaties boxes 19 timesmore than any other athlete. In 1991, at the height of his career, the New York Times reported that he was making between $15 million and $20 million a year from deals with various brands.

He also bet on other sports-related ventures. In 2020, he launched the Nascar 23XI Racing team, which includes Bubba Wallacke, the only black driver on the track. In the same year, Jordan was awarded share in DraftKings Inc. (), where he is a special advisor to the board of directors. The size of his stake in the betting company, which went public in April 2020, has not been disclosed.

A spokesman for DraftKings declined to comment.

The winnings that he received as a player are also not negligible. He was paid more than $90 million during his career with the Bulls and Washington Wizards, according to Spotrac, which tracks sports contracts.

Charlotte’s legacy

Jordan, who grew up in Wilmington, North Carolina, said it was his dream to have a team in his home state. He played at the University of North Carolina under legendary coach Dean Smith. which inspired him to turn professional after his first year. Jordan called his college years the “purest” experience for him as a player.

During Last danceJordan laughed as her mother read aloud a letter she wrote in college asking her to send her stamps and put money in her account because she was $20 short.

Jordan bought a majority stake in the Charlotte Bobcats in 2010. at $275 million valuation and then changed their name back to the Hornets. The team did not see much success during Jordan’s tenure as majority owner. failed to advance to the first round of the playoffs in any season.

Before selling his stake, Jordan took steps to ensure the Hornets stay in Charlotte. In 2022, the city extended the team’s lease until 2045 and struck a $275 million deal that will renovate the uptown stadium and help build a new practice facility.

“While we haven’t been as successful on the court as I and many of you would like, I’m proud of what we’ve achieved as an organization,” Jordan said in his letter to fans.

Assisted by Pei Yi Mak and Kim Bhasin.

Read more at Bloomberg.com.