Bruce Ratner Rumors
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 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.