Michael Jordan reportedly signed a $40 million a year deal to become a “special contributor” for NBC’s NBA coverage this fall.
“A legendary addition to our team! We’re thrilled to welcome Michael Jordan as a special contributor to the NBA on NBC and Peacock,” NBC announced in a post on X.
This is the first time Jordan has ever covered the NBA as a contributor.
The unusual deal prompted speculation that Jordan is desperate for money.
There are rumors as far back as 2020 that Michael Jordan was broke after making bad investments and failing to pay back loans and gambling debts.
The former Chicago Bulls superstar, 62, sold off his majority stake in the Charlotte Hornets for a reported $3 billion to pay off his debts.
Reports claimed that Jordan lost $500 million as a result of “shorting” GameStop stocks in 2020 or 2021. His net worth reportedly fell from $2.1 billion to $1.6 billion – on paper.
When an investor “short-sells” stocks, he borrows stocks from a brokerage firm then sells the borrowed stocks on the open market with the expectation that the stock price will eventually drop.
If the stock price falls, the investor buys back the stocks at a steep discount. He then returns the stocks to the brokerage firm and keeps the profits he made from the original sale of the stocks.
However, if the stock price increases unexpectedly, the brokerage may issue a “margin call” and demand the return of the stocks at the original price.
Rumor has it that Jordan didn’t have the GameStop stocks or the $500 million in cash to pay the brokerage.
If the investor (in this case, Jordan) doesn’t have the stocks or the money, the brokerage can freeze his cash accounts and other assets to satisfy the debt.
That is how Randolph and Mortimer Duke were financially ruined in the comedy film “Trading Places” (1983), starring Ralph Bellamy, Don Ameche, Eddie Murphy and Dan Akroyd. See video clip below.
