Tsai, the co-founder and vice chair of Alibaba, became the new owner of the Nets on Friday in a deal that cost $2.35 billion over two years— the most ever paid for a sports team. The median value of an NBA team today is about $1.75 billion, sports bankers said, which means Tsai paid a hefty premium even though the Nets barely make a profit. Tsai, 55, went forward with the deal anyway because he wanted a New York City team and it was the only one for sale, a source familiar with his thinking said.
Joseph Tsai Rumors
Tsai is also banking on the NBA’s international growth, especially in China where he has deep ties, sources said. In just one sign of how hot China is getting for the NBA, tech company Tencent Holdings last month announced a five-year expansion of its existing digital media partnership with the basketball league. And it agreed to pay $1.5 billion for the rights — or triple the previous price of $500 million, a source said. China’s demand for the NBA — and the Nets specifically — could grow exponentially if Tsai were to recruit a Chinese player, which he has said he wants to do. “I think it’s just a matter of time,” he told Netsdaily.com in May.
In addition to the team, Tsai also forked over $700 million for the Barclays Center arena, the Nets’ home since they moved to Brooklyn. Because the arena also comes with $325 million in debt, the total cost to Tsai sits at $3.38 billion, according to a person with knowledge of the transaction.
Yormark will announce on Friday morning that he’s resigning as chief executive officer of BSE Global, the Nets’ parent company, said the person, who asked not to be identified because the decision hasn’t been made public yet. His departure comes as Alibaba Group Holding Ltd. Executive Vice Chairman Joe Tsai prepares to assume control of the Nets and Barclays Center from Russian billionaire Mikhail Prokhorov.
It makes sense that Yormark would exit along with Prokhorov, whose net worth is $10.8 billion, according to the Bloomberg Billionaires Index. Prokhorov entrusted much of his global sports operation to the executive. Tsai, whose net worth is $10.3 billion, is nearing completion of a deal to buy the 51% of the Nets he didn’t own. He previously bought 49% at a valuation of $2.3 billion, which is a record for a U.S. pro-sports franchise. He had until 2021 to exercise the option to take control of the club, whose already improved fortunes were buoyed this offseason with the acquisition of star free agents Kyrie Irving and Kevin Durant.
Joseph Tsai is closing in on an agreement to purchase the controlling interest in the Brooklyn Nets from majority owner Mikhail Prokhorov, sources confirmed to ESPN. The deal, which is expected to be completed by the end of the week, would value the team at $2.35 billion — making it the largest purchase price of an American professional sports team, surpassing the $2.2 billion paid by David Tepper to buy the Carolina Panthers and by Tilman Fertitta to buy the Houston Rockets.
Joseph Tsai to buy rest of Brooklyn Nets
Joseph Tsai, the billionaire co-founder of e-commerce giant Alibaba, is close to signing a deal to buy the 51 percent of the Brooklyn Nets he does not already own from Russian billionaire Mikhail Prokhorov, sources told The Post. The deal is expected to be announced this week, sources said.
