It’s often hard to pinpoint the exact reasons why people choose to buy certain cars or trucks. But one man’s buying decision was made easier when he found out who owned South Bend Motor Speedway. The answer was quite simple: Michael Jordan. According to multiple news outlets, the basketball legend bought the speedway last year for a whopping $16 million.
So who is Michael Jordan?
If you’re not familiar, Michael Jordan is one of the greatest basketball players of all time. He dominated the game for years and is credited with single-handedly revitalizing basketball in the ’90s. Currently, the “Air Jordan” is considered to be one of the most valuable brands in sports. He owns a number of businesses, including Blue Ribbon Sports, Inc., which owns the rights to the Air Jordan brand. Additionally, he owns the Chicago Bulls and the New York Knicks. He is also the president of the NBA.
Why Does Michael Jordan Want A Motor Speedway?
The most obvious answer to why Michael Jordan would want a motor speedway is because he is a car guy at heart. In 1988, he purchased a Pontiac Trans Am for $16,000 and had it painted in his favorite bright colors.
Not only that, but he had the option of a personalized plate on the vehicle — MJ36. He loved speed and would often cruise the streets of his neighborhood at night looking for cars to race. Unfortunately, those nights of glory were short-lived as he was soon banned from racing for life due to a serious injury he suffered in a car accident before the start of the 1989 season. Since then, he hasn’t been involved in motorsport.
Rumors of Jordan’s interest in purchasing a sports car park began to surface in March 2019. At that time, a source told Business Insider that he had been scouting potential locations for a while and was seriously considering making his acquisition. Further rumors emerged a few days later, with the news that Jordan had in fact finalized the purchase of the sports car park.
How Big A Deal Is This?
This is a pretty big deal… at least, it’s a pretty big deal if you’re a fan of professional sports. Michael Jordan’s investment in the South Bend Motor Speedway is said to be the single-biggest purchase of a sports car park ever!
The news initially broke on Twitter when Jordan’s business manager, Steve Grubbs, tweeted that his client had “finalized [an] investment [that was] nearly equal to the entire market value of the company.”
So what is the entire market value of a sports car park? Let’s take a look, shall we?
South Bend Motor Speedway consists of 23,000 square feet of land, plus buildings and garages. As mentioned above, there are a number of possibilities for investments here. The most obvious one would be to purchase the existing structures and develop them into upscale apartments. If you were an investor looking to make a quick profit, you could purchase the land and build an ultra-luxurious mansion on it, similar to Donald Trump’s “Winter White” residence, which is currently under construction in Jackson Hole, Wyoming.
However, if you’re looking for a more stable investment, you could purchase the company and keep it as-is. They could offer leasing opportunities to interested parties or shareholders. You could also buy the whole thing, fix it up, and rent it out as a luxury sports hotel or apartment complex.
So, what would this all cost? Let’s take a look…
How Much Does It Cost To Fix Up A Motor Speedway?
This is a good question. It depends on what you mean by “fixing it up.” If you’re talking about modernizing the structures and adding luxury amenities, the cost would be considerable. However, if you’re simply talking about replacing worn-out track surfaces with new ones and adding some landscaping, it would be more affordable.
The property is currently assessed at $16.7 million, so you would incur considerable costs if you were to redevelop it. But it would be a worthwhile investment. The question is whether or not Jordan plans to upgrade the entire park, or if he just wants to do some landscaping and replace the track surface.
What Would It Cost To Track Car Racing At A Motor Speedway?
This is another good question. It depends on how often you plan on holding events there and how long you plan on keeping the cars. When it comes time to renew the lease, you would have to discuss the terms with the owner, as he has the right of refusal. But at this point, it’s quite possible that Jordan is planning on holding some races there before the end of the year.
The cost to hold a race at the South Bend Motor Speedway would be in the neighborhood of $300,000. Additional costs would include hiring the services of the local fire department and police department — as well as bringing in emergency medical services in case someone got injured. There is also the matter of security. In today’s world, with the prevalence of violent crimes and terrorism, security is always a paramount issue — especially at a place like this. You would want to make sure that everything is safe and secure for your guests, as well as the people who come to watch the races.
What Will Jordan Do With The Property?
This is a good question. We don’t know for certain what Jordan plans to do with the South Bend Motor Speedway. But one thing is for sure… he’s never been shy about expressing his interests, as can be seen by his many brand and real estate investments. In this case, it’s hard to predict what he might do with the property, but it’s safe to assume that he will do something with it. He’s always liked to “play with toys,” as he calls it.
What do you think about Michael Jordan buying South Bend Motor Speedway? Will he do anything with it?