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So, Forbes thinks the Nets (and arena company) are worth less than what Tsai paid

When Forbes last February valued the Brooklyn Nets at $2.5 billion I missed this key piece of fine print: "Our appraisals are what we think the team would sell for. So while [Joe] Tsai paid $3.3 billion for the Nets, we think the team is worth more like $2.5 billion because he paid around $1 billion for a money-losing arena business."

Actually, Tsai paid an estimated $3.3 billion for both the team and arena operating company.

That came to light after I looked at Forbes's 7/31/20 The World’s Most Valuable Sports Teams 2020, which ranked the Nets as tied for #38, valued at $2.5 billion, after Tsai purchased them--along with the arena operating company--last year for $3.3 billion.

I tweeted at writer Kurt Badenhausen, asking if they were saying the Nets were worth less than what Tsai paid, and he responded, "We believe Nets and rights to operate Barclays are worth less than what Joe Tsai paid."

That, indeed, is possible, given that the arena has lost money, though the value is hard to conceptualize. (And the assessment was made before the pandemic, which has halted arena events and thus most if not all of its revenue.)

Then again, if Tsai paid that sum, and teams/arenas are scarce commodities, then that should be the value, assuming there are other billionaires in the market for such baubles.

Questions, questions

As noted by NetsDaily:
The survey appears to include the value of a team’s venue in its estimates, when appropriate, but provides no breakdown. Nor does it detail how the Nets/Barclays value dropped so precipitously between what Tsai paid and its current value. The survey does note in general that sports properties, particularly in large cities and in the NBA, have been rising ... despite the pandemic.
In February, Forbes attributed $607 million of the team's value to the arena, as shown in the screenshot at right, but that ignores the other value of the arena.

As noted by NetsDaily, different news outlets valued the deal differently:
The three reports differed somewhat with the Post pinning the price at $3 billion, Forbes at $3.3 billion and Bloomberg at around $3.5 billion. A league source involved in the transaction told NetsDaily at the time that the final price for the team and venue was $3.5 billion.
According to [the Post's] Lewis and Kosman, the arena was valued at $700 million in the larger transaction. [Bloomberg's] Soshnick and [Forbes's] Badenhausen do not break out the cost of the arena.

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