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#1 Buzzau Posted 14 September 2019 - 06:33 PM

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September 14, 2019 – Hornets Sports & Entertainment Chairman Michael Jordan today announced that Gabe Plotkin, Founder and Chief Investment Officer, Melvin Capital, and Daniel Sundheim, Founder and Chief Investment Officer of D1 Capital, will join HSE as partners. The transaction is subject to NBA approval.

“I’m excited to welcome Gabe and Dan as my partners in Hornets Sports & Entertainment,” said Michael Jordan. “While I will continue to run the Charlotte Hornets, make all decisions related to the team and organization, and remain the team’s NBA Governor, Gabe and Dan’s investment in the franchise is invaluable, as we continue to modernize, add new technology and strive to compete with the best in the NBA. Both Gabe and Dan are industry standard-setters and proven leaders, with a belief in philanthropy and a passion for the game of basketball. They share my commitment to Charlotte and the Carolinas, and I look forward to working with and learning from them.”
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#2 Adam42R Posted 14 September 2019 - 10:32 PM

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Not posting this as an "I told ya so" because primarily, I think FH was telegraphing similar things; but am feeling pretty much like the spidey-sense was working around this subject and related to the luxo-tax. To me, in some small ways, it makes me feel a bit more comfortable with the long term health of the org as I don't see how it's bad for a.) MJ to have more folks to answer to than the yes-men in his inner circle and b.) explaining a lot of the whys we saw happen that didn't seem to be for basketball reasons (and weren't).

bold here is my current emphasis :: from http://hornetsplanet...-thread/page-30

I think you are right that he held tight to get through All Star weekend. I don't think - in his mind - he'd have had a choice. He was damned if he traded Kemba for picks. He was obviously damned if he didn't. It comes down to what you said about how he's behaved knowing he has a baked in redline that he won't cross. And now I think the most obvious thing is that he's got a $1bn product that he likely has queued up for sale (or wants to) and every finance person in the room says that it cannot have bad debt on the books. And while we might hem and haw about bad contracts, they aren't tax hits and potential repeater tax hits that someone could argue down the value over, especially if it's tax hits that come in the year he's looking to sell.

At this point, I am hoping he puts the damned thing up for sale. I am going to find it revolting to continue to pay off the amount I still owe on STs for 2019-20 to an owner that doesn't seem to give a rat's ass about folks like us funding the non-tax payments he's able to make.


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#3 eshelmon Posted 15 September 2019 - 02:32 AM

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Will be interesting how much is sold...MJ owns 90%+ and 40% could be about 500 million. Seems like should have happened sooner, but wait now gets what appears to be a very favorable sale. A big profit on initial investment, remains majority owner in charge, brings in 2 highly successful in finance to try and improve among league low revenue that’s now rebuilding.
Business wise, don’t feel investment excitement. Team low revenue, finally make ‘big’ money, 40 million last 2 years, projects decline post kemba. But these guys have made a lot more money than me and would not bet against them wmaking MJ and themselves money.
Besides, even hedge fund managers(significant fund purchases for MJ?) the $ could be secondary.,,New York billionaires own Nba team, partial could be step to full owning hornets or another with possible relocation.
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#4 ncborn Posted 15 September 2019 - 10:59 AM

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Man who was the dude who called this in late spring early summer?  What's' name of the dude who told us that the big guy has left the building?  Man, okay Jordan didn't sell the entire team but we sure as hell we got some red hot insider info on this topic MONTHS ago!!!

 

Who says that this board is entirely useless during the off season?!?!?!?!?


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#5 ncborn Posted 15 September 2019 - 11:04 AM

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Founding Hornet - He called half of it which is 100% better than not calling it at all!


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#6 dnbman Posted 15 September 2019 - 11:27 AM

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Who says that this board is entirely useless during the off season?!?!?!?!?

 

Nobody. 


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#7 ncborn Posted 15 September 2019 - 06:50 PM

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This topic needs to be stuck to the top!  This is some important sh!t.  I am guessing that he walks away with at least a $400 profit (after taxes) and at least 50% ownership.  

 

Now that's how you make money!


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#8 powellrmp Posted 16 September 2019 - 11:53 AM

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LET THE SPECULATION AND RUMOR MILL BEGIN!!


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#9 Founding Hornet Posted 16 September 2019 - 05:56 PM

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Was told 9 months ago this was happening. Was actually told that he would sell majority if not all..... still think that is case over next few years.

I PM’d J Foster the news and asked him to stay quiet. He did!

Only reason I chime in here is that I was questioned last year when I told y’all about a few deals that fell through and was called a charlatan....

I know very few of us even know one another so it really doesn’t matter.... but I don’t mind taking an anonymous bow on ultimate insider info when it is authenticated.
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#10 QC Thundercats Posted 17 September 2019 - 07:57 AM

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*
POPULAR

Now we see MJ's offseason focus.  One of his partners is...the Celtics owner.

 

https://www.thespiri...unches-tequila/

yDvwJLsl.png

 

 

Not sure about the name of the black bottle:

 

HOs6M3Fl.jpg

 


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#11 GeraldWallaceMVP Posted 17 September 2019 - 09:32 AM

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Why when anyone does anything outside of basketball do fans complain that it’s their “focus” instead of the game.
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#12 QC Thundercats Posted 17 September 2019 - 10:22 AM

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Why when anyone does anything outside of basketball do fans complain that it’s their “focus” instead of the game.

 

Its simple. Jordan's focus is as a business.  Nothing wrong with it if you're main goal is to make money.  He bought the team low, built up the brand tremendously, found out how to increase his league revenue share with his salary cap management, sold partial ownership at an unbelievable profit, and still retains controlling interest.  As a business person, pretty masterful.

 

And he's great in the community, donates a ton of money for disaster relief, and is helping raise the status of Charlotte through his investments and business partnerships.

 

But business focus doesn't help the basketball side of things.  Investment in scouting, coaching, management, while more costly to the bottom line, could've led to a much better foundation and building of the playing side of the franchise.  When your priority is how to keep a clean accounting sheet that stays in the black, you don't take risks that could hurt the bottom line.  You don't try bold steps or huge investments that could alter the success of the team.  

 

It's MJ's team, he can use it as an investment vehicle if he chooses.  Just sucks because we care more about the basketball side, and those two sides aren't parallel.


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#13 powellrmp Posted 17 September 2019 - 02:41 PM

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I'll buy the team.


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#14 GeraldWallaceMVP Posted 17 September 2019 - 03:00 PM

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MJ theories are fucking nuts these days

The guy who handed a max contract to Nic Batum and 19 mil a year to Terry Rozier is clearly a davy businessman only running a team for money give me a break


MJ has more money than he’ll ever need he doesn’t need the Hornets to make more money.

He clearly likes running an nba team and wants to win, he’s one of the most hands on owners in the league he just sucks at it
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#15 QC Thundercats Posted 17 September 2019 - 03:14 PM

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MJ theories are fucking nuts these days

 

My dude, these aren't theories.  He literally just started a tequila company, sold a huge chunk of the team to a couple investment partners, donated a million to hurricane victims, and has been more focused on building wealth and his brand in the community than a winning team.  I actually have no idea what you're even objecting to.  Its in the news.


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#16 QC Thundercats Posted 17 September 2019 - 03:53 PM

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I saw you added to your post...
 

The guy who handed a max contract to Nic Batum and 19 mil a year to Terry Rozier is clearly a davy businessman only running a team for money give me a break

 

Team owners have to pay a full roster every single year.  Whatever the cap is, that is about the bare minimum every team owner has to pay.  Doesn't even matter what any individual player makes, you can divide 15 names out of the cap however you want. 

 

Guess which team is the only team in the NBA to have never exceeded the cap.  Its us.  To have met the bare minimum in paying an automatic salary expense doesn't show me any extra expenditures at all.  Staying under the cap, the league gives you a share of its revenue every year.  If you're over, you don't get any.
 

MJ has more money than he’ll ever need he doesn’t need the Hornets to make more money.

 

I mean, have you ever heard of a rich business man anywhere in the whole world who doesn't want to make more money?  Its an endless cycle.

 

Can you not see the connection to being part of an exclusive rich person's club and parlay that into other business opportunities outside the team.  Yeah, he's Michael effin Jordan, but he's utilizing his status as a community leader in the hub of the banking capital of America to try to reach the next level of wealth.  Charlotte is attracting more people and business, of course he is going to be front and center of the business community to make more money.  He want's David Tepper money, Oprah money.  Generational wealth.  You know, kinda how Jay-Z went from rapper money to mogul money.  Athlete money is nowhere near that.
 

He clearly likes running an nba team and wants to win, he’s one of the most hands on owners in the league he just sucks at it

 

Never said he didn't want to win.  He obviously hates losing.  But through his actions (actions speak louder than words) it seems that the competition he enjoys more is earning business money vs. having a winning team.  Otherwise he could've thrown whatever it took to get Jerry West to figure this mess out.  He instead went cheap.


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#17 GeraldWallaceMVP Posted 17 September 2019 - 05:17 PM

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Guess which team hasn’t been a legitimate contender for 25 years? Why would Jordan exceed the cap for a team that can’t make the playoffs almost every single owner will not pay the luxury tax for a team that can’t make the playoffs.

When Jordan doesn’t pay up when this team has the chance to be a a real winner I’ll admit I’m wrong but until that’s proven I’m not going to say it.
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#18 QC Thundercats Posted 17 September 2019 - 06:34 PM

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I'm just trying to understand what exactly the debate is.  There's 2 parts of running a basketball team: 1) the business side, and 2) the operations side.  As I said, the business side has been great for Jordan.  So your sentence here:
 

Guess which team hasn’t been a legitimate contender for 25 years? Why would Jordan exceed the cap for a team that can’t make the playoffs almost every single owner will not pay the luxury tax for a team that can’t make the playoffs.

 

is good on the business side, proves he's being smart financially - what I've been saying.  Yes, why exceed the cap for a bad team? But operations side, how did it get to that point?  All these years and can't build a team thats worth paying a premium for? Bad operations.  Not even being able to at least maneuver into and out of the luxury tax to create more flexibility instead of limiting yourself just to the cap.  Or taking on more money for a year for future seasons.  Other teams that weren't title contenders seem to know how to maneuver around the cap.  So why don't we know how to do this? Bad operations, bad vision. 
 

When Jordan doesn’t pay up when this team has the chance to be a a real winner I’ll admit I’m wrong but until that’s proven I’m not going to say it.

 

I actually think he will pay up for a winner.  Some don't think that, but I do feel if there is a contending team, he'd go into the tax.  But he hasn't invested yet in the operations side (and I'm not talking about just player salaries - You have to invest in surrounding yourself with good infrastructure, management staff, scouting staff, trainers, etc.) 

 

So to bring it back, just so I'm clear:

1) Do you agree he's been good on the business side

2) Do you agree he's been bad on the operations (basketball) side

3) Have his actions made you believe he's trying to make sure the business side is as successful as possible, or do you think he's more interested in trying to make sure the basketball is more successful first, then any money he makes is secondary to basketball success?


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#19 nowhere fast Posted 17 September 2019 - 08:54 PM

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But business focus doesn't help the basketball side of things.  Investment in scouting, coaching, management, while more costly to the bottom line, could've led to a much better foundation and building of the playing side of the franchise.  When your priority is how to keep a clean accounting sheet that stays in the black, you don't take risks that could hurt the bottom line.  You don't try bold steps or huge investments that could alter the success of the team.  

MJ did take big risks personnel-wise.  Re-signing Nic for $120M, multiple guys with 12-15M per, Gordon Hayward getting that offer sheet... the scouting/coaching/management part, well the coach and GM he let go last year immediately found jobs so it's not like the rest of the NBA saw his hires as chumps at least up to that point.  Just too bad the big risks didn't pan out and we can all say the same about the draft, but MJ was willing to put up the money when he thought he had to.  At least until last year.


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#20 QC Thundercats Posted 17 September 2019 - 09:28 PM

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MJ did take big risks personnel-wise.  Re-signing Nic for $120M, multiple guys with 12-15M per, Gordon Hayward getting that offer sheet... the scouting/coaching/management part, well the coach and GM he let go last year immediately found jobs so it's not like the rest of the NBA saw his hires as chumps at least up to that point.  Just too bad the big risks didn't pan out and we can all say the same about the draft, but MJ was willing to put up the money when he thought he had to.  At least until last year.

 

Let me clarify that I don't think MJ is cheap in the traditional sense.  He's given out big contracts, and has gone above market value to sign some guys. But he has an absolute red line he won't cross.  He will never cross the tax threshold, even if its just for one season, even if it helps the team both short term and long term.  Won't do it.  Sells his 2nd rounders for cash.  Uses this to take full advantage of the revenue share for under the tax teams. Again, just business decisions, not basketball.

 

These are good for his pocket, but not necessarily the team.  Its as if his fiduciary duty is to big time sponsors and investors, not improving the team.

 

I'd put forth the argument that resigning Nic and everyone else for $12-15M was the least risky, simply because it maintained the status quo and was the easiest path to achieve.  Risky would've been to let Nic go and roll over the cap space to find a good trade or future signing.  Trading one of the 12-15ers early before their contracts were due, as we could sense their life as role players instead of upsiders. 

 

Or keep signing one year contracts/young guys until the perfect time to create a package deal for a disgruntled star.  Asset building.

 

I liked Cliff (Quinn Snyder may have been the better, "riskier" move at the time), but Cliff's of the game managing, foundation building type.  Once he sets it, get someone who can advance the team. Maybe Borrego will surprise us, but a proven guy like Budenholzer would've been worth the risk and all the extra money.

 

Regarding management, Cho did fine for certain things, but maybe he didn't have the experience to stand up to MJ's draft lusts.  Was a cheaper, less rock the boat kind of guy that wouldn't ruffle MJ's feathers.  Mitch may have the personality, but I'm not convinced the game hasn't passed him by.  Should've gone with the Rockets guy instead.

 

I used to always be a glass half full guy, I've just seen enough circumstantial evidence now to know that Jordan is a business man first.


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