Joseph Tsai Rumors

Tsai — who as the right hand of Alibaba chairman Jack Ma boasts a personal fortune of $11.7 billion, according to Forbes — is making his move as the COVID-19 pandemic has devastated the NBA, with yearlong lockdowns wiping out ticket sales and forcing wealthy team owners to cough up cash to keep operations afloat. But as Tsai’s deal moves forward, critics point out that the NBA bylaws explicitly prohibit team owners from taking stakes in competing franchises, even indirectly, unless they get the league’s OK or own less than 1 percent through a publicly traded stock. “No owner … shall hold any direct or indirect financial interest in any other member [team],” without league approval, according to the bylaws.“
The planned $12 billion tie-up, which aims to close this summer, promises a big payout for Tsai, who will be able to sell preferred shares in Owl Rock as part of the deal, a source close to the merger said. It will result in a new investment company called Blue Owl that will trade on the New York Stock Exchange and manage $45 billion in assets, according to public documents.
Otherwise, Rosentraub believes Silver should find a way to give Tsai a waiver, including by getting him to place any proceeds he stands to collect from HomeCourt in a blind trust. Sources say Tsai stands to profit from a management fee Blue Owl will collect from the fund. A performance fee also will kick in after seven years when the fund’s investors are allowed to sell their positions.
But as Tsai’s deal moves forward, critics point out that the NBA bylaws explicitly prohibit team owners from taking stakes in competing franchises, even indirectly, unless they get the league’s OK or own less than 1 percent through a publicly traded stock. “No owner … shall hold any direct or indirect financial interest in any other member [team],” without league approval, according to the bylaws.“ This is a huge conflict,” a rival private equity fund manager told The Post of Tsai’s planned ties to HomeCourt Partners. “It sounds like there is one rule for Joe Tsai and one for everyone else.”
NBA Commissioner Adam Silver has not yet studied the issue, the league said. “It’s premature to comment given that the Owl Rock/Dyal transaction hasn’t happened and the league has yet to review it,” an NBA spokesman said. Tsai declined to comment, but a rep for Dyal denied the transaction will result in any violation of NBA rules, noting that Tsai will own a stake in the asset manager and not in the HomeCourt Partners fund itself.“