NBA approves Jordan’s bid for Bobcats
March 18, 2010
CHARLOTTE, N.C. (AP)—Michael Jordan became a basketball star at NorthCarolina. Now he’ll try to turn around the state’s money-losing NBA team bybecoming the first ex-player to be a majority owner in the league.
The NBA’s Board of Governors on Wednesday unanimously approved Jordan’s $275million bid to buy the Charlotte Bobcats from Bob Johnson. Jordan willimmediately take over the team after functioning as a minority investor with thefinal say on basketball decisions since 2006.
“Purchasing the Bobcats is the culmination of my post-playing career goalof becoming the majority owner of an NBA franchise,” Jordan said in astatement. “I am especially pleased to have the opportunity to build a winningteam in my home state of North Carolina.
“I plan to make this franchise an organization that Charlotte can be proudof, and I am committed to doing all that I can to achieve this goal.”
The six-time NBA champion and five-time league MVP will be charged withturning around the fortunes of the 6-year-old Bobcats, who are on pace to loseabout $30 million this season because of sluggish ticket and sponsorship sales.
The 47-year-old Jordan, who will assume about $150 million in debt in thedeal, becomes the second black majority owner of a major pro sports team. Hereplaces the first in Johnson, who paid $300 million for the expansionfranchise, but lost tens of millions annually and saw the value of the teamdecline as Charlotte fans struggled to warm to the NBA again after the Hornetsleft for New Orleans in 2002.
Johnson won’t completely end his relationship with the team. A spokeswomanfor Johnson said he’ll be a minority investor in Jordan’s ownership group.
“The best decision I made since acquiring the Bobcats was to convince myfriend Michael to become an investor in the Bobcats and to appoint him asmanaging member of basketball operations,” Johnson said in a statement. “Asthe new majority owner of the Bobcats, his dedication will be stronger now morethan ever.”
Commissioner David Stern predicted last week the deal would be easilyapproved by the league’s owners. Stern said last week that background andfinancial checks on Jordan produced nothing that would stop the deal, andexpressed optimism Jordan’s iconic status in this area will boost the franchise.
Jordan grew up in Wilmington, N.C., and led North Carolina to an NCAA titlewith a last-second shot before starring with the Chicago Bulls. Jordan brieflyran the Wizards basketball operations and returned as a player with Washingtonbefore being fired from his management role in 2003.
“We are pleased that Michael Jordan’s purchase of majority ownership of theBobcats was approved by the NBA’s Board of Governors and closed in such a smoothand expeditious fashion,” Stern said. “We look forward to the continued growthof the Bobcats, on and off the court, under his leadership.”
The Bobcats (35-32) won their first game with Jordan in charge. Sittingcourtside near the Charlotte bench on Wednesday night, Jordan watched theBobcats rally to beat Oklahoma City 100-92 to maintain their hold on sixth placein the Eastern Conference. Team officials hope a playoff appearance after Jordantakes control will boost interest in the franchise, which plays in a 5-year-olddowntown arena.
“While there is still plenty of work to do both on and off the floor, ourattendance, television ratings, corporate support and on-court performance areheaded in the right direction,” Bobcats president Fred Whitfield said. “Thattrend will only continue as Michael transitions into all facets of ourbusiness.”
Jordan, who has declined interview requests since striking a deal to buy theteam on Feb. 26, is scheduled to hold a news conference on Thursday night.