Michael Jordan may have lost 500 million shorting GameStop
Michael Jordan may have lost half a billion dollars by betting against GameStop, reducing his net worth dramatically.
Basketball legend Michael Jordan may have lost half a billion dollars in the great GameStop saga.
It seems the Bulls legend didn't do so well financially. While Forbes still reports his net worth at $1.6 billion, that's a $500 million drop since it reported it last in April 2020.
While the former Chicago Bulls player may have a lucrative brand partnership, an impressive basketball career, and more, losing $500 million to GameStop isn't something that will be easily forgotten.
At the beginning of 2021, GameStop stock was worth $20. it reached almost $500, which was a record high for the retailer.
GameStop's spike from double digits to high triple digits was the result of Reddit users noticing that it was one of the most shorted stocks, which meant hedge funds were betting on its demise.
By investing heavily in it, the Reddit army and many others realized they could push the stock higher, until hedge funds covered their shorts, causing the stock to rise.
Two investors bought a minority share of the Hornets from Jordan, the majority owner of the team since 2010.
As per Chicago Sun Times he sold a minority share to Gabe Plotkin, founder of Melvin capital management hedge fund, which shorted GameStop and was severely hurt, requiring billions of cash.
While it has not been confirmed that this led to Jordan's net worth dropping, it is widely believed to be a contributing factor. While details of Jordan's current business relationship with Plotkin are not publicly available.
Forbes reports that Jordan had a net worth of $1 billion in March 2015, which had increased to $1.8 billion by March 2019. He continued to rise to a high of $2.1 billion in April 2020 before taking losses in the past year.
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