Alibaba co-founder Joseph Tsai has been confirmed as the new owner of the National Basketball Association’s (NBA) Brooklyn Nets and their Barclays Center home after buying Russian billionaire Mikhail Prokhorov’s 51 per cent controlling stake in the franchise.
Tsai’s deal to purchase a 49 per cent minority stake in the team back in 2018 included an option to acquire additional shares in 2021, but the Canadian has exercised that right two seasons early.
The financial details of the takeover have not been made public, but Bloomberg says that Tsai is paying a total of US$3.5 billion for the Nets and the Barclays Center. Reported values for the total price of the transaction differ, with the New York Post reporting the deal for the Brooklyn venue is worth more than US$700 million on its own, in a deal coming in at just over a total US$3 billion.
Tsai paid a reported US$1 billion for his initial 49 per cent stake in the Nets, and the New York Post claims that he has purchased the remaining shares for US$1.35 billion.
If the figures are correct, the deal would represent the highest fee ever paid for a sports franchise, eclipsing the US$2.2 billion David Tepper parted ways with in 2018 to purchase the National Football League’s (NFL) Carolina Panthers.
The transaction, which requires the approval of the NBA board of governors, is expected to go through by the end of September.
Either way, Prokhorov is making a strong return on the investment he began in 2010. By the time he completed his purchase of both the Nets and the Barclays Center in 2015 he had paid US$875 million for the team and US$825 million for the venue. Four years later, he is selling the team alone at nearly three times his original purchase price.
“I’ve had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago,” said Tsai. “He hired a front office and coaching staff focused on player development, he supported the organisation with all his resources, and he refused to tank.
“I will be the beneficiary of Mikhail’s vision, which put the Nets in a great position to compete, and for which I am incredibly grateful.”
The current management team are to continue to run Barclays Center and the Nets under the new ownership. Meanwhile, Brett Yormark, chief executive of BSE Global, the parent company of the arena and the team, will oversee the transition to new ownership before leaving for a new role.
“It has been an honour and a joy to open Barclays Center, bring the Nets to Brooklyn, and watch them grow strong roots in the community while cultivating global appeal,” added Prokhorov. “The team is in a better place today than ever before and I know that Joe will build on that success, while continuing to deliver the guest experience at Barclays Center that our fans, employees, and colleagues in the industry enjoy.”
Tsai’s takeover comes at an exciting time for the Nets on the court following the star arrivals of Kyrie Irving and Kevin Durant, who is expected the miss the entire 2019/20 season through injury. The franchise begin the new NBA season at home to the Minnesota Timberwolves on 23rd October.
Alibaba co-founder Joseph Tsai has been confirmed as the new owner of the National Basketball Association’s (NBA) Brooklyn Nets and their Barclays Center home after buying Russian billionaire Mikhail Prokhorov’s 51 per cent controlling stake in the franchise.
Tsai’s deal to purchase a 49 per cent minority stake in the team back in 2018 included an option to acquire additional shares in 2021, but the Canadian has exercised that right two seasons early.
The financial details of the takeover have not been made public, but Bloomberg says that Tsai is paying a total of US$3.5 billion for the Nets and the Barclays Center. Reported values for the total price of the transaction differ, with the New York Post reporting the deal for the Brooklyn venue is worth more than US$700 million on its own, in a deal coming in at just over US$3 billion.
However it is ultimately costed, Prokhorov is making a strong return on the investment he began in 2010. By the time he completed his purchase of both the Nets and the Barclays Center in 2015 he had paid US$875 million and the arena at US$825 million for the venue. Four years later, he is selling the team at nearly three times his purchase price.
Tsai paid a reported US$1 billion for his initial 49 per cent stake in the Nets, and the New York Post claims that he has purchased the remaining shares for US$1.35 billion.
If the figures are correct, the deal would represent the highest fee ever paid for a sports franchise, eclipsing the US$2.2 billion David Tepper parted ways with in 2018 to purchase the National Football League’s (NFL) Carolina Panthers.
The transaction, which requires the approval of the NBA board of governors, is expected to go through by the end of September.
“I’ve had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago,” said Tsai. “He hired a front office and coaching staff focused on player development, he supported the organisation with all his resources, and he refused to tank.
“I will be the beneficiary of Mikhail’s vision, which put the Nets in a great position to compete, and for which I am incredibly grateful.”
The current management team are to continue to run Barclays Center and the Nets under the new ownership. Meanwhile, Brett Yormark, chief executive of BSE Global, the parent company of the arena and the team, will oversee the transition to new ownership before leaving for a new role.
“It has been an honour and a joy to open Barclays Center, bring the Nets to Brooklyn, and watch them grow strong roots in the community while cultivating global appeal,” added Prokhorov. “The team is in a better place today than ever before and I know that Joe will build on that success, while continuing to deliver the guest experience at Barclays Center that our fans, employees, and colleagues in the industry enjoy.”
Tsai’s takeover comes at an exciting time for the Nets on the court following the star arrivals of Kyrie Irving and Kevin Durant, who is expected the miss the entire 2019/20 season through injury. The franchise begin the new NBA season at home to the Minnesota Timberwolves on 23rd October.
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