A viral narrative about Michael Jordan resurfaces periodically. When it does, people often reach out with messages suggesting we should update his net worth, claiming he’s broke.
According to the story, Jordan supposedly lost a staggering amount while shorting GameStop stock during the meme stock frenzy in early 2021, leaving him $500 million in debt and necessitating the sale of the Charlotte Bobcats to a hedge fund that held his debt. Another version simply posits that he lost $500 million on the stock itself, not that he was in debt. Regardless, the tale asserts that Jordan sold the Bobcats two and a half years later for $3 billion to alleviate his financial troubles.
If you look up “Michael Jordan GameStop” on platforms like YouTube or TikTok, you’ll find countless videos presenting this narrative as undeniable truth. However, it is far from factual and is merely a viral fabrication.
Today, the story resurfaced, and I traced its origin to a YouTube channel called “Soysaucesports.” In a recent video, one of the hosts wrongly stated that Jordan lost so much money on GameStop trades that he had to sell the Charlotte Hornets to his “bookie,” who they claim is Gabe Plotkin, the founder of Melvin Capital.
Returning to the events of early 2021, the volatility of GameStop’s stock price resulted from a “short squeeze” driven by investors from Reddit’s “Wall Street Bets” subreddit. These investors were frustrated with hedge funds betting against companies like GameStop, with Melvin Capital being one of the main targets due to its significant short position. As GameStop’s stock price skyrocketed, Melvin suffered severe losses, particularly around January 31, 2021, when its assets dropped significantly.
While Reddit users celebrated these perceived victories, the reality was that Melvin’s assets fell from about $12 billion to approximately $7.8 billion before the firm decided to shut down rather than declaring bankruptcy.
Now, concerning Michael Jordan, he originally invested in the Charlotte NBA franchise in 2006 and increased his stake over the years to 90%, totaling around $300 million. In 2019, he sold a minority stake at a $1.5 billion valuation, with Gabe Plotkin as one of the buyers. In June 2023, he sold a majority stake for $3 billion, again with Plotkin involved.
The narrative that Michael was forced to sell the team due to debt is misleading. He did not sell the team immediately after the GameStop phenomenon; rather, he waited two and a half years. This rumor started circulating in October 2021 and can be traced back to a low-authority Twitter account that falsely connected various dots to conclude Jordan was financially obligated to Melvin Capital.
There are no credible sources proving that Jordan shorted GameStop or was an investor in Melvin Capital. The origin of the $500 million loss figure comes from Forbes’ estimation of Jordan’s net worth, which dropped from $2.1 billion to $1.6 billion within a year, but this decrease was unexplained and could simply be an adjustment.
In summary
Did Michael Jordan lose $500 million on GameStop? No.
Was he forced to sell the Hornets to pay off debts? Not at all.
Did the sale benefit him financially? Absolutely.
Michael Jordan remains a multi-billionaire, and selling the Hornets was a strategic move that significantly increased his wealth. He likely never had any investments against GameStop. If you’re interested in more stories like this, we have a newsletter called Deep Pockets that explores significant financial successes, including details about Jordan’s lucrative Nike deal, which he initially hesitated to sign. You can subscribe by
