According to Woj’s report in March this year, Charlotte Hornets boss Michael Jordan is in serious negotiations, he plans to sell the majority of the team’s shares to the consortium led by garb Plott, the Hornets minority shareholder, and Rick schner, the Atlanta Hawks minority shareholder. The report sent a message that boss Joe was going to sell the Hornets. After holding the team for more than 10 years, he was going to cash out.
As soon as the news came out, many people didn’t understand Jordan’s practice, because the valuation of NBA teams was rising continuously. In addition, the league would enter a new television relay contract cycle in 2025, it is reported that Xiao Hua is seeking a new television relay contract with a total amount of about three times the current contract (24 billion), and the NBA will take it to the next level. Isn’t it stupid to leave at this time? Give up this idea quickly.
Is Jordan the King star on the court and the ignorant white in life? Today, let’s talk about it together.
First of all, it is not stupid for boss Qiao to sell wasps at this time. The time goes back to 2010, at that time, he bought most of the equity of the team from Bob Johnson, the boss of Wasp at the price of 0.18 billion dollars and became the big boss of the team. Now the Hornet’s valuation has reached 1.7 billion dollars, and the valuation has more than doubled in 13 years. If he sells now, he can get rich profits, and selling Wasps at this time is definitely a good operation.
Of course, many people’s criticism of this matter is not that Jordan does not make money in this deal, but that Jordan will miss the opportunity to make more money. But is it true? Let’s take a look. According to relevant data, the current average valuation of NBA teams is 3 billion dollars and average yearly earnings is close to 0.1 billion dollars, which means that the current price-earnings ratio of NBA teams has reached 30 times, this price-earnings ratio is already very high in both US stocks and our A- share market. Judging the trend of the market by this price-earnings ratio, the possibility of continuing to rise is getting smaller and smaller, and the possibility of falling is getting bigger and bigger. For investors, if he has already made a lot of money at this time, he needs to see that the market has overheated now. Now, it is not how to consider making more money, but to cash out, the bag is safe.
Jordan did exactly this, and he must be given a big praise here.
P/E ratio is a term in economics. For more information, it is the ratio of market value or valuation to annual income. NBA teams now have a P/E ratio of 30, it probably means that an investor now buys an NBA team. According to the team’s current revenue ability, it will take him 30 years to return to the capital.
As for investment, Buffett, known as the “stock God”, once had such a discussion: no one can accurately choose the time and no one can predict the market. Then on the premise of recognizing this principle, the idea of investing is to buy those underestimated high-quality assets and then hold them for a long time. Now boss Qiao holds Hornets and plans to sell them at a high price after 13 years. If he sells them at a high price, it can be used as a classic case in professional sports investment, boss Joe will also write a strong mark in his investment career.
The 6 Champions, known as the “God of Basketball”, these glittering things on the court gave Jordan too much aura, so that people ignored his investment wisdom on the field, people attribute Jordan’s current success to his cooperation with Nike. He bought Wasps, but you know, all this is not accidental, it is his own choice, it was all the decisions he made after careful consideration. Now he chose to retreat in a hurry and try to sell the Hornets in a high position, which once again demonstrated his investment wisdom.
