Forbes is reporting that Michael Jordan paid only $175m. for the franchise Bob Johnson bought for $300m. in 2003 — plus Johnson provided $30m. in start-up capital.
In other words, Jordan got roughly a 50% discount on an NBA franchise. Or. NBA franchises are only worth half of what they were worth seven years ago.
Now I am figuring out why all the cloak-and-dagger surrounding Jordan’s business partners in this deal. The NBA clearly views MJ as a savior of the Charlotte franchise — witness access of to up to $150m. in league-backed borrowing power. From there, with a $175m. price-point it was a no-brainer for MJ to do the deal. It is in no one’s interest to detail how little Jordan had to pay for the Bobcats.
However, this also punches giant holes in the notion that because Jordan has so very much of his money in the game, MJ will suddenly ramp up his footprint in the day-to-day ops of the Bobcats. Turns out, no.
I didn’t believe that Jordan would turn into Jim “we’re dealin'” Samson last week, and I really do not believe it if this discount price point is correct.
