The New York Post's well-sourced (but not always accurate) Josh Kosman had a scoop last night,
Brooklyn Nets owner Prokhorov plans to sell the team:
That would be quite a profit, since Forbes earlier this year estimated the value of the team+arena at $1.8 billion.
Kosman reported that the Nets recently revised their lease with the Barclays Center to pay less rent, so that could improve the team's bottom line.
In a March 2010 interview, Bloomberg's Ryan Chilcote asked, "Are you buying the Nets forever or is this a short-term business deal and in five years you're going to flip the company?"
"For me, it's a strategic investment," Prokhorov responded.
"Bridge your way into America," Chilcote added.
"If you buy a business forever, that means it's not a business. It's a hobby," said Prokhorov with a smile. "And if your business reaches the peak, you sell. But it's not high time to speak about that."
Well, from one perspective, the business hasn't reached its peak. Prokhorov told the Times in March 2010 he expected the Nets’ value to reach $1 billion once the new arena “is built and the team gets to the top of the N.B.A.” Team performance has lagged.
Brooklyn Nets owner Prokhorov plans to sell the team:
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.
...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.
...Prokhorov, after the NBA’s Houston Rockets sold earlier this month for a record price of $2.2 billion, is seeking roughly $2 billion for the Nets, sources said.
That would be quite a profit, since Forbes earlier this year estimated the value of the team+arena at $1.8 billion.
Then again, there are more billionaires than teams, so they're willing to overpay for, in this case, a team that still loses money.
Remember, Howard Stern, in 2013 discussing team ownership with Jay-Z, asked, "It's just an ego thing?" was told, "Yeah, NBA teams are like paintings for billionaires."
Kosman reported that the Nets recently revised their lease with the Barclays Center to pay less rent, so that could improve the team's bottom line.
Past bold predictions
"For me, it's a strategic investment," Prokhorov responded.
"Bridge your way into America," Chilcote added.
"If you buy a business forever, that means it's not a business. It's a hobby," said Prokhorov with a smile. "And if your business reaches the peak, you sell. But it's not high time to speak about that."
Well, from one perspective, the business hasn't reached its peak. Prokhorov told the Times in March 2010 he expected the Nets’ value to reach $1 billion once the new arena “is built and the team gets to the top of the N.B.A.” Team performance has lagged.
Nor has the team made any profit. In July 2010, he not only told Forbes Russia the team would be worth at least $1 billion in five years, the profit within two years would be $20 million.
But the league has new TV rights. And more rich people willing to buy than sell.
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