Brooklyn Nets owner Mikhail Prokhorov has completed the sale of a 49% interest in the Brooklyn Nets to Joe Tsai. Mr. Tsai is executive vice chairman and co-founder of Alibaba Group, a global internet company with businesses in e-commerce, cloud computing and digital entertainment.
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The transaction provides Mr. Tsai an option to acquire further shares in 2021 and, if exercised, become the controlling owner of the team. The announced share sale does not include Barclays Center, which will continue to be wholly owned by Onexim Sports and Entertainment. The NBA Board of Governors unanimously approved the transaction.
Mr. Prokhorov, through Onexim Sports and Entertainment Holding USA, Inc., will continue to be the controlling owner and the NBA Governor of the team. There will be no changes in the day-to-day management of the team’s business or basketball operations.
As the Nets hard-fought game with the Warriors drew to a close, YES Network cameras caught Joe Tsai, about to become the Nets minority owner (and heir apparent), talking with Kenny Atkinson. Later, Tsai, a Taiwanese-Canadian citizen, was seen talking to Jeremy Lin, who’s of Taiwanese parentage and who Tsai has described as “my favorite player.”
Tsai, who has a home in LaJolla, California, sat courtside near the Nets bench with his family. It’s at least the third time he’s been seen at a Nets game since agreeing in principle to purchase 49.5 percent of the team from Mikhail Prokhorov. The reported price tag for the co-founder of Alibaba, the Chinese e-commerce giant: $1.13 billion. Under terms of the deal, as reported back in October, Tsai will assume ownership control of the Nets in 2022. Prokhorov would then become a minority stakeholder.
Multiple sources tell NetsDaily that the final deal between Mikhail Prokhorov and Joe Tsai is likely to be closed and announced in next week or so. As the deal was reported in late October, Tsai will pay $1.13 billion for 49 percent of the Nets with an option to take control in 2022. Prokhorov will retain 100 percent ownership of Barclays Center and the other venues his Brooklyn Sports & Entertainment controls including Nassau Coliseum.
Just last week, in a discussion of the Nets future with NetsDaily, GM Sean Marks noted, “We’re going to have to be patient, Mikhail’s going to have to be patient, Joe’s going to have to be patient, but by the end of the day, we all realize, ‘let’s build the foundation.’”
Nets officials have noted repeatedly over the last several months that Tsai, like Prokhorov, has bought into Marks long-term rebuild. In November, during a short back-and-forth between him and Bill Walton in Huangzhou, Tsai told the Hall of Famer that he expects his ownership to be “an interesting journey” and “a long-term project.” He also described Jeremy Lin, a Taiwanese-American, as his “favorite player.”
Nets Daily: Multiple sources say final deal between Mikhail Prokhorov and Joe Tsai likely to be closed and announced in next week or so. As reported back in October, Tsai will pay $1.1 bn for 49% of team with option to take control in 2022. The two owners have combined net worth of $23 bn
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.
Brooklyn Nets owner Mikhail Prokhorov is ready for a long goodbye. The Russian billionaire, unable to sell a minority stake in the money-losing NBA franchise, now plans to off-load a controlling stake in the team, two sources close to the situation told The Post.
However, Prokhorov is hoping to sell the Nets in a two-part process, the sources said. First, the 52-year-old will look to sell a minority piece of the team — but give the buyer the right to buy the entire team in a short period of time — say three years, the sources said. “There will be a new owner in the next few years,” one of the sources said.
The Nets believe they can attract a selling price of at least $2 billion, especially after Tilman Fertitta agreed to buy the Rockets for $2.2 billion, sources said. The Rockets are profitable, however, and the Nets next season are still expected to lose money. There are interested buyers, including Wall Street types, who have been doing due diligence on the team, sources said.
Alibaba Executive Vice Chairman Joe Tsai has expressed an interest in the team, a source told The Post, though reps for his family office, Blue Pool Capital, deny it.
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September 19, 2018 | 2:37 pm EDT Update
Adrian Wojnarowski: Minnesota’s Jimmy Butler has three preferred destinations for a trade, league sources tell ESPN: The Brooklyn Nets, Los Angeles Clippers and New York Knicks. Those three teams have max cap space to sign Butler as a free agent in July.
Butler and Thibodeau met on Tuesday in Los Angeles to discuss his situation, according to multiple sources. Over the last several weeks, Butler began to seriously contemplate his future with the Timberwolves and a potential trade request, league sources said. It was in that meeting that Butler expressed a desire to be traded, telling Thibodeau that he does not intend to sign a long-term extension with the Wolves next summer. He has provided a list of one to three teams with which he would be open to signing a long-term deal, sources said.
Thibodeau was initially resistant to the idea, according to sources, but Butler is determined to find a new home. The Timberwolves are scheduled to have media day on Monday and their first training camp practice on Tuesday, so the clock is ticking.
Adrian Wojnarowski: Sources: After NBA investigation into workplace misconduct, Dallas owner Mark Cuban and the NBA have agreed that he’ll donate $10M to organizations that promote women in leadership roles and combat domestic violence. NBA can only fine $2.5M by rules.
Adrian Wojnarowski: There are also NBA-mandated sanctions on Dallas that will require that the franchise make changes on reporting, staffing and policy to improve the workplace culture, league sources said. Donald Sterling had received that $2.5M fine as Clippers owner.