Eddie Jordan is a famous businessman and a respected TV commentator on motorsport issues. Although he is the chief BBC analyst for Formula One motorsport, Jordan is best known as one of the most experienced and charismatic managers of the Irish motorsport.
Eddie Jordan, 70, was born in 1949 in Ireland. He started his early career working as a clerical employee at the Bank of Ireland. He soon fell in love with rallying and, in 1971, took part in the Irish Kart championship. He emerged the winner.
Later, in 1974, Jordan became an active member of the Formula Ford team and subsequently won the Irish Formula Ford rally. In 1975 Jordan moved to Formula Three and in 1977 the Formula Atlantic, where he emerged winner in three races. In 1977 he also triumphed in the Irish Formula Atlantic rally.
Eddie Jordan’s current net worth is estimated to be around $475 million.
Jordan Commercialized Formula One
Eddie Jordan earned a significant chunk of his massive wealth as a motorsport team manager. Indeed, a handsome portion of Jordan’s riches was gained after the motorsport hero introduced the Jordan Grand Prix. He won fame in the UK and elsewhere due to his exploits as a motorsport team manager who popularized the Formula One.
Jordan’s motorsport teams thrived well between 1991 to 2005. The team developed a peculiar reputation for turning a simple motor racing event into a thrilling ‘rock n roll’ affair, complete with a character. The team did much to endear the sport to both the media and the public.
Subsequently, this brought the cash flowing in; huge amounts. Jordan also made a significant amount of money from a later team called the ‘Force India.’ Through the legendary Benson and Hedges, this team rolled in plenty of money for Jordan, with the successful streak sustaining for some 10 years.
Between 1996 and 2005, the primary sponsor of Jordan’s racing team was a reputable cigarette brand. Interestingly, despite restrictions on tobacco-related advertising, the company aggressively publicized their product- the Bitten and Hisses- in races. In addition to adopting an aggressive marketing technique, the company further designed a mascot to complete its advertising stunt. Paradoxically, this brought the Jordan team millions of dollars in consistent revenue.
Acknowledging Jordan, the Child Entrepreneur
According to ‘An Independent Man,’ the successful mogul’s official autobiography, Jordan already possessed an entrepreneurial wheeler-dealer mindset right from childhood. The book says that even while in school, young Jordan liked trading in marbles and conkers within the compound. Moreover, he did not hesitate to grab the chance to buy or sell books.
As he grew up, Jordan busied himself buying and selling bigger things like second-hand cars. He bought these from friends, while in playful motorbike-racing errands done over the weekends. He put up newspaper ads to sell them. Later, while working at the bank, Jordan would discreetly sell his own merchandise to customers who had come to seek car-loans!
Highlights of Jordan’s Mind-Boggling Fortune
Eddie Jordan, who was broke at that time, started his first motorsports team in 1979. He called it the Eddie Jordan Racing. In his new team were veteran drivers David Sear and David Leslie. In time, the team participated in many rallying events in the UK and elsewhere. Thanks to Jordan’s efforts, experienced and talented drivers like Sear, Leslie, and others achieved remarkable success, rising to international fame.
Jordan’s team of highly successful drivers who ended up winning the world championship includes veterans like Michael Schumacher, Eddie Irvine, Nigel Mansell, Roberto Moreno, Ralph Schumacher, and John Watson. Most of these drivers also won the coveted Grand Prix title. Notably, the prestigious Grand Prix itself was Eddie Jordan’s brainchild that came into existence in 1991.
Although Jordan greatly enjoyed racing, he gave up the adrenaline-characterized thrill when the desire to manage other driver’s dreams became overwhelming. In the 1980s, Jordan joined the Formula One. He is credited with steering the veteran Michael Schumacher in his first drive before losing him to Benetton due to contractual issues.
By the 2000s, Jordan’s team was at the peak of its performance, winning many races and achieving outstanding finishes at the podium. Regrettably, Jordan was forced to sell off his team in 2005 as a result of legal and financial complexities.
Jordan Invests a Fortune in Multiple Big Businesses
Apart from working as a TV commentator, Eddie Jordan runs several investment companies and businesses. He is the proprietor of Debrett’s, a small publishing house he runs through a management team. Jordan serves on the board of the Clareville Capital, which is a London hedge fund. He holds significant shares in Valeo Foods, the company that took over Jacob’s biscuit maker in 2011. The new venture is said to bring in handsome annual returns.
Jordan recently intimated that he has set aside $1.2 billion, which is invested in a modern skyscraper located in New York City’s 432 Park Avenue. The building is already under construction.
Besides being an astute businessman and a successful motorsports manager, Eddie Jordan is a lover of music, particularly the Rock n Roll genre. He even formed the V-10 band, also known as “Eddie and the Robbers.” Eddie’s band regularly does a series of worldwide shows.
With a relatively good stream of income, Jordan’s pocket is certainly deep enough to finance the band’s flights and pay the expenses. Indeed, whenever possible, the band is always ready to offer some free shows as a bonus to fans. He also loves horse racing and enjoys playing golf. Eddie is the proprietor of the brand ‘EJ-10’ energy drink and brand V10 Vodka.
Also, Jordan is among a group of business moguls that recently invested more than 400 million sterling pounds into the New York Tower. The venture was facilitated through the City Private Bank Ltd. The building in New York is considered one of the tallest residential structures in the world. Significantly, residential apartments in the area typically cost anywhere from $17 million to $95 million. The total sales are projected to reach a whopping $3 billion.
Jordan Imitates ‘the Fergusson Management Style’
From the outset, even in his 20’s, Eddie Jordan believed that a good deal should lead to profits. Of course, it does not hurt to rake in some good profits consistently. He learned a lot from his mother’s business-like mindset. He learned to deal with people when he sold second-hand cars to customers of all kinds.
Jordan describes his own management style as mimicking that of the legendary Alex Ferguson of Manchester United. While in contact with him, Jordan discovered that when they analyzed various situations, they would often come up with similar solutions for a problem; yes, he believed they shared identical thought patterns.
The businessman challenges people to check with successful drivers who raced in his motorsport team, legends like Michael Schumacher, Alesi, and Eddie Irvine. Typically, they would describe Jordan’s management style as radically uncompromising, shunning complacency, and anchored on fairness.
Making Money from Wheeler-Dealer Tactics
Eddie Jordan admits that over the years, while managing his racing teams, he made lots of money, not just from sponsorships but also from wheeler-dealer tactics. Despite this, he often felt lonely while working as an independent team manager and running a cut-throat business.
Eventually, in 2001 it became impossible for Jordan’s team to keep afloat in the face of fierce competition from formidable rivals like Ferrari. Despite selling off 49.9 % of shares to Warburg Pincus, Jordan determined that it could not survive. He eventually sold the team to a Russia-Canadian conglomerate – Midland Group.
The deal involved between 40-75 million Sterling Pounds.
Soaking Up Losses
Eddie Jordan freely admits that he has made huge losses in his business life. For example, although he generally adores hedge fund investing, he has often experienced the lows and highs of this business. In fact, Jordan recently intimated that there were times when his investments took some big hits. He cautions that whenever there is a chance to rake in some big profits, there are significant risks, including the potential for huge losses in the deal.
Jordan compares the hedge fund to an investment basket that is designed to bring in returns. Thus, in such a scheme, whenever anyone makes profits, it’s advisable to reinvest this. He advises people to shun the ‘hoarding tendency’ and, instead, embrace an investment mindset.
This, according to Jordan, is the ingredient for profitability and success.
How He Dealt Effectively with Declining Business and Profits
In early 2000, Eddie Jordan’s team and its overall profits started declining. Several factors beyond Jordan’s control were responsible for this unexpected downturn. First, in 2002 Jordan lost a beneficial deal with Honda that allowed both to partner in promoting Honda engine.
The rival BAR motorsport team seized the contract. This unfavorable turn of events put Jordan and his team in greater financial problems that eventually became public. The team was forced to turn to the costly Cosworth engine, leading to greater financial constraints.
To make matters worse, Benson and Hedges also revised the terms of sponsorship while DHL withdrew entirely. These developments led to a financial drain that Jordan’s teams would never survive. Even before this, Jordan had taken Vodafone to court, alleging the breach of a sponsorship deal that would have lasted three years. The deal was worth about 150 million pounds. Unfortunately, Jordan lost this case, further worsening his team’s financial woes.
Things improved a little when Trust Computers pledged new sponsorship for the team in 2004. Nevertheless, Jordan eventually sold the team in 2005 to the Midland Group.
Exploring Jordan’s Multimillion-Dollar Assets
Private Jet, Real Estate
Eddie Jordan has many types of multimillion-dollar property, including a helicopter and several houses in South Kensington, London, Wentworth, and Monaco.
Jordan owns a magnificent luxury superyacht that cost him a whopping 32 million sterling pounds. The yacht’s design, structures, and furnishings have been described as mimicking the typical family home. Among other elements, it has five en suite double bedrooms that are made ready for guests.
Eddie Jordan owns an impressive fleet of high-end cars, including Range Rover, Mercedes Benz, BMW, and Audi. Interestingly, despite his acclaimed love for cars, Jordan says that he has nothing like a huge garage filled with supercars or exceedingly fancy vehicles for that matter.
He routinely drives a BMW M 235i coupe. He says that his joy and pride rests in driving an E-type primrose Jaguar convertible that, he jokes, wins more admirers than the high-end McLarens, Lamborghinis, Bugattis or Ferraris.
Jordan’s Peculiar Spending
Eddie Jordan admits that he has a specific weakness with money: He spends a lot on skiing. He enjoys skiing out in the summer. Moreover, he is a great fan of golfing and sailing. To satisfy this pastime, he has spent colossal sums of money buying boats, yachts, and other luxurious vessels.
In his early youth, Jordan spent 5 million pounds just designing a Formula One car. Although he received some 12 million pounds in sponsorship, this was a relatively significant amount to spend. When the season closed, Jordan realized he had lost the initial 5 million pounds owed another 5 million.
This put him at loggerheads with banks that demanded payment. He also ran several court cases at the time and soon had the bailiffs knocking at his door. Fortunately, some benefactors injected 18 million sterling pounds in Jordan’s business, saving the day and making him bounce back.
Jordan’s Little Secrets for Success
According to Eddie Jordan, what kept him ticking was a burning determination to achieve his goals. He attributes his success in business to admirable qualities like integrity, honesty, and forthrightness.
For instance, while negotiating with the Formula One sponsors, Jordan always let them know that there was no guarantee that his team would win the race. He, however, threw in the bait, assuring them that whatever money they pumped in could pay back several times. He took full advantage of various media plans as well as advertising.
Jordan advises entrepreneurs to think twice before switching into a different kind of business. It does not matter that they succeeded in the first type of business. Caution is the catchword. He singles out the property business as particularly risky.
A Roundup of Jordan’s Winning Strategy
One of Eddie Jordan’s most effective investment strategy revolves around his penchant to keep a grip on shares, convinced that, in the end, these would bring in returns. Most of the time, this strategy has worked wonders, owing to his remarkably keen and calculating instinct.
Jordan considers the sectors of oil investment and mining as hotcakes that are getting lucrative by the day. Jordan’s investments in the mining area, particularly gold mining, has raked in millions of dollars in returns.
Eddie, the successful business magnate, points out that he does not just follow popular investment trends; instead, he thrives more on a risk instinct, being ready to stake his neck and come out alive and kicking, so-to-speak. To illustrate, he said that if he wanted to gain 3% or 5% profit, he would either target the banks or go for investment in bonds.
Regardless, Eddie Jordan always prefers to be much more aggressive. And, it seems, so should we.