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Michael Jordan Bails Out a Billionaire
The Daily Beast ^ | 04/01/10 | Peter Lauria

Posted on 04/01/2010 9:15:34 AM PDT by OldDeckHand

The nation’s first African-American billionaire, Robert Johnson, is enduring a cash crush so severe, reports Peter Lauria, that he had to hock his NBA franchise to Michael Jordan for a song..

When the nation’s first African-American billionaire, Robert Johnson, bought the expansion Charlotte Bobcats NBA team in 2002, his highest-profile move was hiring the most famous athlete in the world, Michael Jordan, to run the team. In a twist thick with irony, the employee has now become the savior: Two weeks ago, Jordan bought the team for pennies on the dollar.

The sale underscores Johnson’s dire financial situation. Four sources with firsthand knowledge tell The Daily Beast that the 63-year-old founder of BET desperately needs cash. The Bobcats sale was precipitated by a need for liquidity to fund his other investment obligations and avoid becoming insolvent, according to business associates of Johnson’s and sources involved in the sale.

Indeed, three sources specifically involved with the team sale said Johnson was eager to ink a deal before an upcoming interest payment on the team’s $40 million in bank debt, so he could save the cash, even though it was only for a few million dollars. That, combined with the deal’s terms, suggests that Johnson is dangerously close to being illiquid. Though reports said he initially wanted between $325 million and $350 million for the Bobcats, the NBA valued the deal at $275 million. But that includes the assumption of debt and other liabilities taken on by Jordan. His Airness only paid Johnson a fire-sale price of $25 million cash in the deal, these three sources say

(Excerpt) Read more at thedailybeast.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events; US: North Carolina
KEYWORDS: athletes; basketball; bet; billionaires; democrat; nba; robertjohnson
First, this couldn't happen to a more deserving Democrat money-man (Bob Johnson). And second, I'm surprised that Jordan is astute enough to pull this off himself. While a NBA franchise is probably definitely a poor investment choice, a NBA purchased for a pittance of $25 million, isn't.

Sure, Jordan has to assume the franchise debt which is somewhere north of $250 million, still - it's a good price.

1 posted on 04/01/2010 9:15:34 AM PDT by OldDeckHand
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To: OldDeckHand

Wow I’m surprised Oprah didn’t help with all her Billions...


2 posted on 04/01/2010 9:17:27 AM PDT by Freddd (CNN is down to Three Hundred Thousand viewers. But they worked for it.)
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To: Freddd

My first thought as well.


3 posted on 04/01/2010 9:19:25 AM PDT by Tallguy ("The sh- t's chess, it ain't checkers!" -- Alonzo (Denzel Washington) in "Training Day")
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To: OldDeckHand
Debt is racist!

(did I do that right?)

4 posted on 04/01/2010 9:19:34 AM PDT by ikka
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To: OldDeckHand

Bailed out? Sounds to me like he got his pants pulled down, smacked, and left twisting in the wind. MJ is a shrewd operator and took full advantage of an incompetent businessman.


5 posted on 04/01/2010 9:20:05 AM PDT by AbeKrieger (If you believe in manmade global warming, you lack reason.)
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To: Freddd
Wow I’m surprised Oprah didn’t help with all her Billions...

Maybe that's how one "keeps it real"?

6 posted on 04/01/2010 9:24:19 AM PDT by South Hawthorne (In Memory of my Dear Friend Henry Lee II)
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To: OldDeckHand

wonder what sucked this billionaire down so badly?


7 posted on 04/01/2010 9:28:00 AM PDT by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: OldDeckHand

Actually, I think Johnson is a Republican.


8 posted on 04/01/2010 9:28:17 AM PDT by DallasDeb (USAFA '06 Mom)
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To: Freddd

Oprah? I’m surprised Barack Obama didn’t bail him out!


9 posted on 04/01/2010 9:30:01 AM PDT by mothball
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To: OldDeckHand

From all that I have read about Michael Jordan, he is very smart, very tough, very competitive - in all fields.


10 posted on 04/01/2010 9:30:16 AM PDT by karnage (worn arguments and old attitudes)
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To: OldDeckHand

Johnson’s wife received four hundred million dollars in a divorce settlement and then married the judge who handled the divorce proceedings.
Nothing questionable about that outcome.


11 posted on 04/01/2010 9:30:32 AM PDT by em2vn
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To: DallasDeb
"Actually, I think Johnson is a Republican."

Absolutely, unequivocally not. He was a BIG TIME money-guy for Bill & Hilary. You might be a little misdirected because Johnson had some unflattering things to say about Obama during the 2008 primary campaign. But, he said them while speaking at a Hilary Clinton campaign stop. Bob Johnson has been, and continues to be a Democrat.

His ex-wife, Debra Johnson (I think that's her name), although a Democrat and Obama supporter, did endorse Bob McDonnell in the VA governors race last fall. She based her endorsement primarily on economic concerns in VA.

12 posted on 04/01/2010 9:32:30 AM PDT by OldDeckHand
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To: OldDeckHand

>> the 63-year-old founder of BET

Made his money off of racism.

Couldn’t happen to a more deserving scumbag. Hope he ends up under a highway overpass.


13 posted on 04/01/2010 9:35:16 AM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: OldDeckHand

....he aint no billionaire!!!! ha ha hahahahaha...
What happened? Obama wipe out his assets leaving him only with billions in debt?

“Indeed, three sources specifically involved with the team sale said Johnson was eager to ink a deal before an upcoming interest payment on the team’s $40 million in bank debt, so he could save the cash, even though it was only for a few million dollars”

kinda reminds me about the guy looking at the motorhome or yacht wondering miles per galon...


14 posted on 04/01/2010 9:35:36 AM PDT by himno hero
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To: Nervous Tick

now, now.


15 posted on 04/01/2010 9:36:09 AM PDT by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: DallasDeb

Not if you’ve ever watched BET he’s not.


16 posted on 04/01/2010 9:38:29 AM PDT by Ro_Thunder ("Other than ending SLAVERY, FASCISM, NAZISM and COMMUNISM, war has never solved anything")
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To: Ro_Thunder

He hasn’t owned it since 2000 when he sold it to Viacom. He has supported the Clintons in the past, but otherwise seems to support Republicans.


17 posted on 04/01/2010 9:41:30 AM PDT by DallasDeb (USAFA '06 Mom)
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To: HiTech RedNeck

>> now, now.

Now would be just fine with me.


18 posted on 04/01/2010 9:43:54 AM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: All

Buying a sports team is the first thing a rich black man wants to do.

I’ve watched enough Cribs. I learned that rich blacks have “Entertainment Centers” and the few rich whites that show has featured have “Book cases”.

I see how it works. I really do.


19 posted on 04/01/2010 9:44:18 AM PDT by Celerity
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To: DallasDeb

Big Hillary supporter. Did NOT like Obama.

As a businessman, I think he saw right thru The One.


20 posted on 04/01/2010 9:46:25 AM PDT by Retired Greyhound
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To: OldDeckHand

Don’t worry. Jordan will gamble the team away on a hand of poker in the next few months.


21 posted on 04/01/2010 9:46:57 AM PDT by Retired Greyhound
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To: Nervous Tick

Oh, he’ll probably manage to drop the losing investment junk by hook or by crook or by a wink at Obama, and live a fairly comfortable mere millionaire life for the rest of his years. I don’t see a cardboard box in his future (at least until he dies).


22 posted on 04/01/2010 9:48:30 AM PDT by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: OldDeckHand

...I live in North Carolina and the Bobcats are a losing proposition...they’ll skin Michael Jordan out of his money too...remember him with the Wizards?...he was a bringer of confusion rather than harmony...that’s why he got the boot...he doesn’t like to put in the day to day attention to detail that it takes to run a business...right now he’s looking for pardners to come in with him on the Bobcats deal...and they’re not coming forward.

....Bob Johnson made his dough off booty-shaking videos and black comedians that made fun of whites....he was always a cheap shot kind of businessman....he’ll be broke in due time.


23 posted on 04/01/2010 9:48:45 AM PDT by STONEWALLS
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To: DallasDeb
Actually, I think Johnson is a Republican...

I can guarantee that the founder of BET is not a Repub or a conservative.

24 posted on 04/01/2010 11:15:47 AM PDT by gogeo ("Every one has a right to be an idiot. He abuses the privilege!" Groucho Marx)
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To: OldDeckHand

What is “BET?” (Thanks in advance.)


25 posted on 04/01/2010 11:34:55 AM PDT by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: AEMILIUS PAULUS
"What is “BET?” (Thanks in advance.)"

It is the cable channel "Black Entertainment Television". Johnson founded this as well as a number of "black-oriented" magazines (I think Jet, for one). BET was sold by Johnson to Viacom (owners of CBS & Paramount) several years ago (could have been a decade ago, I can't remember precisely) for something north of a billion dollars.

26 posted on 04/01/2010 11:39:25 AM PDT by OldDeckHand
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To: OldDeckHand

Robert Johnson sings the blues? I have that album!


27 posted on 04/01/2010 11:52:40 AM PDT by divine_moment_of_facts (Give me Liberty.. or I'll get up and get it for myself!)
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To: DallasDeb
He is not a Republican, he supported Hillary over Obama in the primaries.
28 posted on 04/01/2010 11:59:27 AM PDT by Captain Peter Blood
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To: DallasDeb
He is not a Republican, he supported Hillary over Obama in the primaries.
29 posted on 04/01/2010 12:00:05 PM PDT by Captain Peter Blood
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To: HiTech RedNeck

>> I don’t see a cardboard box in his future (at least until he dies).

I have learned to never let go of my dreams. ;-)


30 posted on 04/01/2010 7:30:01 PM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: Nervous Tick

If it comes true and you gloat, remember God may see and turn His anger away from the one being gloated at.


31 posted on 04/01/2010 9:19:58 PM PDT by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: HiTech RedNeck

>> If it comes true and you gloat, remember God may see and turn His anger away from the one being gloated at.

True, that.

Maybe I better not gloat.


32 posted on 04/02/2010 5:12:12 AM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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