Charlotte Hornets owner and Hall of Famer Michael Jordan reacts during the first half of their game against the New York Knicks at Spectrum Center on November 12, 2021 in Charlotte, North Carolina.
Jordan has six NBA championship rings. He likes to watch things.
The five-time NBA most valuable player, who now owns the Charlotte Hornets, joined a list of athletes to invest in WatchBox, a site that allows people to buy, sell, and trade luxury watches. Richard Mille is a favorite of NBA players.
The company said on Tuesday that it raised $165 million. Milwaukee Bucks star and reigning championship Most Valuable Player, and reigning championship Most Valuable Player nominee, and reigning championship Most Valuable Player nominee, and reigning championship Most Valuable Player nominee, and reigning championship Most Valuable Player nominee, and reigning championship Most Valuable Player nominee, and reigning championship Most Valuable Player nominee,
Since its founding in the year of 2017, WatchBox has made $260 million. People with knowledge of the matter told CNBC that the company is close to $1 billion. The individuals asked not to be named because of the private valuation.
In an interview with CNBC on Monday, the CEO of WatchBox said the company is on pace for $300 million in net revenue this year and could seek an IPO in the future.
There is an inventory valued at $150 million. The company buys and trades luxury watches instead of being a marketplace. It then resells the products to other buyers and collects transaction fees.
The platform is similar to dealing with Goldman Sachs. We have client advisors that you can talk to about your watches.
The secondary luxury watch market is booming as top makers like Richard Mille avoid increasing supply to protect scarcity around collections. As demand increases, the secondary market allows luxury lines to hold their value.
Last year, Morgan Stanley reported that the two brands sold 810,000 and 53,000 watches. Audemars sold 40,000 watches and Richard Mille sold 4,300.
Pre-owned watch sales are estimated to hit $18 billion in 2019. The market for new retail watches will be one-third of the size of the market for pre-owned watches by 2025, according to the firm.
There are other companies trying to take advantage of the demand. Rivals like Watchmaster, and New York-based Hodinkee are trying to get a piece of the secondary market.
Tom Brady was one of the investors who raised $40 million for Hodinkee. The company launched a pre-owned watch shop in October.
WatchBox has surpassed $1 billion in total revenue since its creation, and is the largest platform in terms of size and scale.
The cash will be used to expand the digital platform and open collector lounges in New York, Los Angeles, Miami, Houston and Dallas. The firm wants to reach 40 markets over the next three years.
Jordan and Antetokounmpo will help WatchBox as it competes with other platforms.
The Milwaukee Bucks just won their first NBA championship in 50 years. Ready Nutrition is one of the companies he has equity stakes in.
According to Forbes, Jordan is one of the wealthiest athletes in the world with a net worth of $1.6 billion.
Jordan has a stake in DraftKings. He became the first black majority owner of a full-time racing team in the NASCAR series when he purchased Germain Racing's team charter last September.
Jordan was lured by WatchBox through his business partner. Michael Strahan and Larry Fitzgerald were also in the financing round.
Many of the guys on that list are customers of ours. As we build the company, they will help us build a profile.
Even with well-known athletes, it won't be enough.
The watch platform WatchBox is benefiting from a boom in the luxury watch market. The market will eventually correct itself, and only a few platforms will survive.
At that point, WatchBox could ask for help. The company could pursue an IPO in the future.
He said that their focus was to really scale and grow. If that means bringing in an IPO strategy in the next couple of years, then we will definitely consider it.
The funds to execute the short-term plans are there with the new private capital.
Robert Frank was a contributor to the article.
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