While His $150 Million NASCAR Investment Might’ve Paid Off, Michael Jordan Lost More Than 3 Times That in a Botched Deal

Michael Jordan stands tall among the richest sports icons ever, thanks to his jaw-dropping earnings during the pinnacle of his NBA journey as well as from his highly successful business ventures. Nevertheless, it’s worth mentioning that this NBA great has experienced a staggering financial fumble in a deal gone sour, resulting in a loss of over $500 million.

This colossal setback has purportedly slashed Jordan‘s net worth from an astounding $2.1 billion to $1.6 billion. But what precisely was the crux of this ill-fated deal?

When the NBA legend’s business ventures took a roller-coaster ride

Michael Jordan has always been a NASCAR aficionado. When veteran driver Denny Hamlin approached Jordan with an offer to become a part owner of a NASCAR team, Jordan seized the opportunity. In 2020, MJ and Hamlin joined forces as co-owners of the 23XI Racing team. Being one of the newest teams along with Trackhouse Racing, MJ’s team has enjoyed considerable success, attracting major sponsors. 

While his NASCAR investment has flourished, Jordan’s other financial ventures have been a mixed bag. His sale of a majority stake in the NBA franchise, the Charlotte Hornets, to investor Gabe Plotkin in 2019 has not turned out to be in MJ’s best interests. Plotkin’s hedge fund, Melvin Capital Management, had faced significant losses in GameStop, necessitating substantial funding.

The exact reasons for the fluctuations in Jordan’s wealth remain undisclosed, but this business partnership is believed to be a major factor. Jordan’s net worth had surged from $1 billion in March 2015 to a staggering $2.1 billion in April 2020 before the decline began.

And now it has come to the point where, the NBA’s Board of Governors has given the green light for the sale of the Charlotte Hornets, as per insider intel from ESPN. This historic deal will be spearheaded by a group led by none other than Rick Schnall and Gabe Plotkin, paving the way to bid farewell to Michael Jordan’s illustrious 13-year reign as the majority owner.

Adding to the reports, Jordan allegedly suffered a $500 million loss in GameStop shares. Partnering with Gabriel Plotkin right before GameStop’s stock price surge, they found themselves entangled in the chaos of professional investors betting on the stock’s fall.

GameStop’s share price took a wild ride, skyrocketing to $350 in January 2021, then plummeting, surging again, and fluctuating erratically. In the midst of these financial tempests, Celebrity Net Worth creator Brian Warner delved into Jordan’s connection to GameStop, exploring the intriguing link between the NBA legend and the electronics retailer.

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The unsettling sting of COVID-19 on the future of Hornets and the fortune of Michael Jordan 

The meteoric rise of the Jordan brand has been nothing short of awe-inspiring. Michael Jordan’s endorsement deals with giants like Nike have proven immensely lucrative over the years. However, none of these ventures could match the colossal earnings of the Hornets, perhaps leaving the team vulnerable to significant losses during the COVID-19 outbreak, when NBA games continued without spectators.

Furthermore, Jordan’s ownership of the NBA franchise remains a cornerstone of his wealth, with a net worth of $500 million hanging in the balance. The Hornets undoubtedly experienced a financial blow due to the tumultuous year the NBA endured.

Alas, Jordan has not provided a concrete explanation, leaving us to speculate on the potential $500 million losses incurred across his investments, the iconic Air Jordan brand, and the Hornets.

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