Joseph Tsai, the executive vice chairman and co-founder of Chinese e-commerce goliath Alibaba, has reached an agreement in principle to purchase a 49 percent minority stake in the Brooklyn Nets that includes the option to acquire controlling interest of the NBA franchise in several years, league sources told ESPN.
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The purchase price will be based upon a $2.3 billion valuation of the team, league sources said.
Mikhail Prokhorov is in talks with multiple suitors to sell the Brooklyn Nets — and he’s pushing for an eye-popping price tag. The Russian billionaire is demanding a valuation of around $2 billion for his money-losing NBA team — near the record-setting $2.2 billion price that the Houston Rockets fetched earlier this month, sources told The Post.
Nets Daily: Hearing that negotiations for sale of minority stake in Nets are active. Don’t know if imminent or who’s interested just that talks active.
Russian billionaire Mikhail Prokhorov is getting closer to selling the Brooklyn Nets, sources told The Post.
There are multiple suitors late in the process to buy a 49-percent stake in the struggling NBA team, along with the right to buy a larger stake and become the controlling owner in three years, sources told The Post. The sale does not include Brooklyn’s Barclays Center.
Despite a league-low payroll, the Nets lost $44.3 million last year, according to confidential league documents obtained by ESPN’s Zach Lowe. That’s the league’s second biggest loss, behind only the Pistons who lost $45.1 million. The Pistons’ losses were actually much greater. The Nets did not receive revenue-sharing money from the league and their profits from Barclays Center are not included in the analysis. The Pistons, on the other hand, lost $63.2 million before collecting revenue sharing last season, “the largest loss by a wide margin,” Lowe notes. Detroit doesn’t own its own arena, unlike the Nets.
The Nets, said the league source, have never made money in Brooklyn and didn’t make money their last years in New Jersey under Bruce Ratner and before that under the late Lewis Katz and Raymond Chambers. Ratner, in fact, ran up record debts financing the Nets losses. When he sold the team in 2010 to Mikhail Prokhorov, the team had $200 million debt, nearly identical to the team’s value at the time. Lowe notes that the materials he obtained did not discuss the profit-and-loss picture for teams like the Nets who own their own arena.
Brooklyn Nets owner Mikhail Prokhorov, while focused on selling a minority stake in the franchise, has warmed recently to the possibility of offering a controlling slice of the team, sources close to the situation said. The change of heart comes after the initial reaction to the minority stake sale was weak — and with interest in the Houston Rockets sale heating up, one source said. The Nets believe some of the suitors who look at the Rockets will also take an interest in them, sources said. “As word gets out about the new Nets process, some of the Rockets interest may spill over,” a source said.
Brooklyn Nets owner Mikhail Prokhorov has told Russian media he’s selling a 49 percent stake in the NBA club. The Russian billionaire announced his intention to sell a minority stake in December, and now says “49 percent of the Brooklyn shares are up for sale,” in comments reported by R-Sport.
Ohm Youngmisuk: Mikhail Prokhorov reiterated he will remain majority owner of the Nets and said he is actively searching for a minority ownership partner to “strengthen” the team’s presence in New York. “I’m passionate about owning the Nets and our emerging sports and entertainment businesses, and will continue to look at growth opportunities,” Prokhorov said in a statement. “… I’m proud of the steps we’ve taken this year, including the opening of the world-class HSS Training Center and developing a new culture with GM Sean Marks and Head Coach Kenny Atkinson. I’m committed to the Nets and will remain the majority owner of the team.”
According to a Nets insider, the Russian oligarch would like to sell up to 49 percent of the Nets, but NOT the other assets held by Brooklyn Sports & Entertainment: Barclays Center, Nassau Coliseum, and the Brooklyn Paramount Theater. There’s no indication that Prokhorov has set any deadline for a sale or who might be interested.
Scott Soshnick: BREAKING: @BrooklynNets hire Allen & Co.’s Steve Greenberg to find local minority investor #sportsbiz #NBA
Mikhail Prokhorov’s Moscow-based spokesperson, Ellen Pinchuk, has reiterated the Nets owner’s position that he intends to hang on the team. “He has no plans to sell the team.” Pinchuk told the Post’s Page Six.
Other league sources say that both Prokhorov and his CEO, Dmitry Razumov, remain convinced they can turn the team around. Rumors of his intention to sell have risen and fallen over the last year. Prokhorov has said he’s willing to sell a piece of the team and arena, but there’s no indication of any active discussions. Prokhorov bought the remaining share of the team (20 percent) and Barclays Center (55 percent) as well as an 85 percent share in Nassau Coliseum from Bruce Ratner just before Christmas.
Chris Mannix: Prokhorov says he has “no ideas to sell” the Nets. Says he is happy being 100% owner of the team. Says he has had offers for the team.
Tim Bontemps: Prokhorov: “I take full responsibility for the state of the team.”
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December 12, 2017 | 8:53 am EST Update
Whiteside is in the second year of a four-year, $98 million deal and he certainly is not untouchable. But will the Heat actively shop their defensive anchor? That question should be easier to answer as we get closer to the Feb. 8 trade deadline and beyond. As long as the Heat stay in the hunt, Pat Riley will not weaken the team. Making the playoffs is important to Riley and the players. But Riley never stops exploring ways to get better and if Adebayo continues to improve and the Heat believe he and Kelly Olynyk can anchor the middle, than, yes, Whiteside becomes a bit more expendable. But a lot has to happen if the Heat decided to deal Whiteside. First, a team must be willing to take on the remainder of his contract and secondly, that team must have a star that Riley would require if his is trading one of his building blocks.
Sean Cunningham: In speaking with George Hill at his function at Encina Prep HS in Sacramento, I asked him if he’s more at peace in knowing his role with the Kings. His response in the video below. pic.twitter.com/NzkxPCq4H4
SiriusXM NBA Radio: “We’re getting to the point where Billy Donovan has to consider bringing Carmelo Anthony off the bench” … “It is becoming a crisis time for Oklahoma City”. – Frank Isola on the Thunder still searching for answers.
“For the talent that we have, obviously this is not where we want to be,” Thunder forward Paul George said. “But we’re going to remain optimistic, though, about the future and what we can do. Once we can find a way to really do it night in and night out, it’s no panic mode, but we have to start playing better. It’s getting to a point where we can’t allow ourselves to be at this point. We can say we’re going to figure it out, we can say all that. But at some point it’s gotta stop.”