*Please welcome the newest member of the billionaire’s club: Michael Jordan.
Source familiar with the Charlotte Hornets tell forbes.com that the basketball icon graduated into his new status after increasing his stake in the NBA team from 80% to 89.5% during the past several months.
Jordan first invested in the Hornets in 2006, when the team was known as the Charlotte Bobcats. He ultimately went on to become the controlling owner of the team when he bought out former owner Robert Johnson for $175 million. According to sports bankers, the Hornets are currently worth between $600 million and $625 million. To compare, the Milwaukee Bucks are considered the least valuable team in the league after being sold for $550 million in May.
To reach Jordan’s billionaire status, forbes.com used the $600 million figure. The site calculated the total debt the Hornets have ($135 million), which makes Jordan’s equity in the team worth $416 million. After subtracting all the cash Jordan has invested in the team, Forbes estimates the former NBA all-star’s net worth outside of the Hornets to be $600 million, giving him a net worth of a $1 billion.
And that is our math lesson for today. Any questions?