How The Hornets New Ownership Changes Everything

Out with the old, in with the new. Reports on Thursday suggest owner Michael Jordan is selling his majority stake in the Charlotte Hornets

On the opening day of the NCAA Tournament, a Michael Jordan-shaped bomb was dropped on the city of Charlotte. The NBA’s only black owner and former player Michael Jordan has decided to sell. 

The Hornets’ new ownership model is an interesting one, there isn’t a single mega-rich owner like Steve Balmer buying the Hornets, but a consortium ownership group reportedly led by Gabe Plotkin and Richard Schnall. This isn’t the first time Jordan has done business with Plotkin. Jordan previously sold a minority stake in the Hornets to Plotkin in June 2020, in what now seems like a first step in the selling process.

Who Are Gabe Plotkin and Richard Schnall?

Gabe Plotkin

Plotkin is a hedge fund manager, investor, and former Chief Investment Officer of Melvin Capital. If you recognize the name, it’s likely because Plotkin and Melvin Capital were at the center of the Gamestop/Robinhood controversy, resulting in Melvin Capital being wound up. How the disgraced Plotkin who Reddit has named an "Economic Terrorist" has the financial power and respectability to become the figurehead of an NBA ownership group is certainly a question, but one I don’t have an answer to.

Richard Schnall

Compared to his partner, Schnall is Mr. Boring. He’s a partner at Clayton, Dubilier & Rice and leads their financial services and technology team. Schnall is currently a minority owner with the Atlanta Hawks, he’s a Harvard graduate who resides in New York City and ticks all the boxes of your classic rich investor. Other than being super wealthy and clearly having an interest in NBA ownership, there’s little else known about Schnall.

The Winds of Change Are Coming

Don’t be fooled by the lull in major moves in the short term, once the sale goes through expect a major franchise overhaul in every department. Any new ownership group wants to make its mark, history tells us new owners aren’t the most patient. The foundations of the Hornets organization are rotten, like any new homeowner I expect them to be ripped up and rebuilt. Coaches, front office, staffing, and players, expect a major shakeup over the next 18 months.

We have seen several new NBA owners make mistakes in their first years with a team. Vivek Ranadive with the Kings, Alex Rodriguez and Marc Lore with the Timberwolves, Mat Ishbia with the Suns, and the list goes on. Each of these new owners made a big splash, whether that was appointing Vlade Divac as GM, Rodriguez trading EVERYTHING for Gobert, or Ishbia going all in for Durant, history tells us change is coming.

Questions that arise (With some answers)

- Will the Hornets stay in Charlotte? In June 2022 the Hornets signed a lease with the city of Charlotte until 2045, this was likely an aim Jordan wanted to achieve before proceeding with the sale to ensure the medium-term future of the team is secure. Still, with the franchise’s history, I expect this to be one of the first topics the new ownership group will address once the sale has gone through.

- Will Michael Jordan stay involved? As part of the sale it appears Jordan will retain a minority stake in the Hornets, will that mean he’s kept on as an “Advisor”? Or does he just want a way to tap into the network of NBA owners? It’s no secret that he’s a well-respected voice in the NBA with him taking leading roles during CBA and “The Bubble” negotiations in recent years.

- Why didn’t the Hornets go through a normal “For Sale” process? Normally when an owner decides to sell, they make their intention public to drive up competition and the eventual sale price. Although this was likely common knowledge in ownership circles, it’s still curious about the private manner in which the sale was managed.

- How much will the Hornets be sold for? Unknown at this stage, Forbes estimates the Hornets are worth $1.7 Billion.

- Could the Hawks former GM Travis Schlenk end up in Charlotte? New Hornets co-owner Schnall was part of the interview group that appointed Schlenk in Atlanta in 2017, Schlenk was eventually replaced in June 2022 by Landry Fields. If Schlenk and Schnall still have a relationship he could be lurking in the shadows and be on the shortlist to shore up the franchise. (Okay, I’m out of Sh words)

- How does this affect Miles Bridges? Re-signing a player off the back of a domestic violence accusation and lengthy NBA suspension isn’t the way most new owners would want to start. Any new contract agreement will now likely require sign-off from the new ownership group, even if it occurs before the sale has been formally completed.

- Will Charlotte spend more? Surely this will be a yes. It's well known among coaches and front office staff around the league that Charlotte is among the league’s lowest spenders. Hotels on the road, sports science staff, analytics staff, front office staff, and coaching salaries. These all need additional investment to catch up with the rest of the NBA.

Finally, the question on everyone’s mind. Is Michael Jordan selling a good thing? 

It’s clear Jordan’s on-court success in Charlotte hasn’t been what everyone had hoped since taking over in 2010. Accusations of nepotism, low spending, lack of engagement, and poor decision-making have followed Jordan closely. However, if you speak to staff within the Hornets organization and they will tell you that Charlotte made major improvements off the court. Connecting with the local community, ticket sales, bringing the Hornets name back to Charlotte, and creating a better overall working environment. Unfortunately, in pro sports, if the team isn’t winning then all the other progress gets thrown out the window and forgotten about.

At the end of the day no matter what the new ownership group does in terms of spending, hiring, and talking to the press, they will be judged on the same thing Jordan was, can they build a winner?