Basketball legend Michael Jordan has agreed to sell his majority stake in the National Basketball Association's Charlotte Hornets to wealthy investors Gabe Plotkin and Rick Schnall, a representative for Jordan confirmed Friday.
Jordan sold the stake for $3 billion, a source close to the deal told CNBC. Jordan will retain minority ownership of the team as part of the agreement.
Jordan took a majority stake in the Hornets in 2010 for $275 million after previously holding a minority interest in the team. If the sale is approved, that will mean Jordan made roughly 10 times his original investment.
Under the ownership of the six-time NBA champion Jordan, the Hornets have struggled, only making the playoffs two times.
Plotkin acquired a minority stake in the Hornets in 2019 and has served as an alternate governor on the NBA Board of Governors. He's the founder of investment management firm Tallwoods Capital.
Schnall is co-president of private equity firm Clayton, Dubilier & Rice, where he has worked for 27 years. He has been a minority owner of the NBA's Atlanta Hawks and an alternate governor on the NBA Board of Governors since 2015.
He is in the process of selling his investment in the Hawks, which is expected to be completed in the next several weeks.Â
Billionaire Dan Sundheim, owner of D1 Capital, is also included in the buyer group, along with North Carolina musicians J. Cole and Eric Church.
The sale includes other assets in the Hornets Sports & Entertainment group, including its G League team, the Greensboro Swarm; its esports team, the Hornets Venom GT; and the management and operation of the Spectrum Center, where the Hornets play.
The transaction for the Hornets is subject to approval by the NBA Board of Governors.
Forbes values the Hornets at $1.7 billion, which ranks 27th out of 30 NBA teams.