Bruce Ratner Rumors
Brooklyn Sports & Entertainment announced Thursday that they will be moving corporate offices, including the Nets business operations, to Industry City next year. They will lease —and renovate— the floor directly below the HSS Training Center.. Business operations have been headquartered at Metro Tech, Bruce Ratner’s office complex in the borough. The lease at Metro Tech was up … and consolidating office space has been an organization goal since the Nets chose the Industry City site on 39th Street just off Upper New York Bay.
The Russian oligarch confirmed he is talks to “buy out” Bruce Ratner in both the team and Barclays Center. He didn’t put a number on the valuation of either property or identify a potential buyer of the minority stake. Forbes has put the valuation of the Nets alone at $1.5 billion. Here’s what he told TASS… “I’m not planning to sell the Brooklyn Nets. The situation is that we’re in discussion with our partners at Forest City, who own 20% of the club and 55% of the arena, to buy them out. This has two components. One is that we’re restructuring their debt by increasing our share and, second, we want to create conditions by which we can sell a minority stake at some point in the future to realize some gains from the team’s capitalization. These two aspects are important. Plus, the NBA prefers that the ownership structure of the arena and the team be the same, so we’re following that logic.”
Ric Bucher in his report on how Mikhail Prokhorov wants to go “all in” on the Nets and Barclays Center, suggested that there could a resolution on the matter in two weeks. He could be right. In a filing last week, Forest Center Enterprises, Bruce Ratner’s parent company, disclosed that the company has an August 12 deadline to either repay his debts to the “MP Entities,” that is ONEXIM, or Ratner’s “ownership interests in the Nets will be diluted from 20% to approximately 8%.” That would mean Prokhorov would own 92 percent of the team. We are told, however, that FCE will pay the tens of millions it owes to Prokhorov and retain the 20 percent interest. What is owed is less than the value of what would be lost. We are told as well that negotiations for the buyout of the entire Ratner stake in the team –and possibly the arena– are either underway or will be very soon.
Ric Bucher, reporting for Bleacher Report, said Tuesday night that the Nets principal owner, Mikhail Prokhorov, owner of 80 percent of the Nets and 45 percent of Barclays Center. wants to go “all-in” and buy out stakes in both from Bruce Ratner. Bucher said an announcement could come on the plan within two weeks. NetsDaily has been told there may soon be negotiations between the two sides on such a possible sale. Ratner, who was principal owner from 2004 through Prokhorov’s purchase of the team in 2010, has been trying to sell his stakes in both properties, but has thus far failed. NetsDaily has reached out to both sides for comment.