Nelly Claims Stake in Charlotte Bobcats

Rapper takes his fame, fortune to the court, buying into the NBA expansion team acquired

by Bob Johnson By Latif Lewis

Hip-hop personalities are no longer just spitting lyrics over beats these days; they're using their fame and fortune to create business empires that include clothing labels, retail stores, and jewelry lines. Now, Grammy-winning rapper Nelly is kicking his Country Grammar in the owner's box of the Charlotte Bobcats, the NBA's newest-and only minority controlled-franchise.

Announced July 19, Nelly's involvement adds to the African American holdings in the franchise acquired by Robert L. Johnson in 2003 for $300 million. "This is a great opportunity for both the Bobcats and Nelly," says Johnson, the team's majority owner and the founder of Black Entertainment Television, said Monday in a press release. "Nelly is a great entertainer and a smart businessman; and those two traits will serve us well as we prepare to tip off our inaugural season this fall." The terms of the deal were undisclosed.

"Of the many dreams that I have fulfilled in life, being an NBA owner is certainly one of the biggest achievements," Nelly, born Cornell Haynes Jr., said in a release. "To be able to make this move with Bob Johnson and to be a part of the first-ever minority-owned professional sports franchise in history is a great opportunity. Bob and I share the same commitment to diversity and we are both self-made, having worked up from the very bottom to reach where we are today."

Other owners of the franchise include former NBA player and executive M.L. Carr; Felix Sabates, owner of NASCAR racing teams; and Hugh McColl Jr., former CEO of Bank of America. For the St. Louis native, whose hits include Hot in Herre and Country Grammar, getting involved in sports is nothing new. Before becoming a rapper, his dream was to become a professional baseball player, and in March, his Vokal clothing label sponsored part of Billy Ballew Motorsports for the rest of the NASCAR truck season.

Another rapper/entrepreneur, Shawn "Jay-Z" Carter, in partnership with a group of investors, bought a minority stake in the New Jersey Nets in a bid earlier this year. That franchise has its sights set on moving to Brooklyn, NY pending approval. Until now, African Americans, like past and present, BE 100S executives Herman Russell, Comer Cottrell, and Ed Gardner, and hoopsters like Isiah Thomas and Michael Jordan, have only been able to gain minority stakes in sports franchises. Johnson's majority ownership is definitely changing the game.

The trick for Johnson and company is to build a profitable team from scratch, where revenues (which are primarily derived from TV broadcast rights; advertising sponsorships; and sales from general tickets, luxury suites, and club seating) offset the top expense of any NBA team-player payroll. Despite high salaries, Johnson expects to have his team running profitably by the end of the first season.

While acquiring the Charlotte NBA expansion team makes Robert Johnson the first African American majority owner of a major U.S. sports franchise, several others have owned minority stakes. Here's a list of some of the current and former minority owners and the teams they held interests in:

Name Occupation Team ``````````````````````````````````````````````````````````````

Peter Bynoe Attorney Denver Nuggets

Deron Cherry former NFL player, Entrepreneur Jacksonville Jaguars

Comer Cottrell Entrepreneur Texas Rangers

Ed Gardner Chairman, Soft Sheen Products Chicago Bulls

Michael Jordan Former NBA Star Washington Wizards

Bertram Lee Broadcasting executive Denver Nuggets

Herman J. Russell Former CEO, H.J Russell & Co. Atlanta Hawks

Isiah Thomas Former NBA Star, Entrepreneur Toronto Raptors

Shawn "Jay-Z" Carter Rapper, Entrepreneur New Jersey Nets