How much is Joe Tsai really worth? Big divergence between Bloomberg ($5.66B) and Forbes ($8B) estimates, neither of which explain their math.
In my essay earlier this week for CommonEdge, In Honoring Philanthropists with the Onassis Medal, the MAS Forgets Its Crusade Against Supertalls, I suggested that the net worth of Joe Tsai--owner of the Brooklyn Nets and Barclays Center operating company "has recently fluctuated below $6 billion, according to Bloomberg Billionaires Index, though at times before Alibaba’s stock declined, he was worth double that."
Bloomberg's math--as of this morning, as shown below, it's $5.66 billion--suggests that Tsai's ownership of the Nets and the arena operating company represents more than half his wealth.
(Sportico recently valued those holdings at $3.61 billion; Forbes estimated $3.2 billion.)
But Bloomberg's net worth estimate may not be accurate. After all, as shown in the screenshot at right, Forbes separately estimates his net worth at $8 billion.
That's a pretty big divergence. It means that, while Forbes ranks Tsai #232 among the world's wealthiest, Bloomberg places him #377.
So too the divergence between Tsai's estimated maximum and minimum net worth. Bloomberg estimates a peak of $15.6 billion, while Forbes says $11.6 billion. As to a minimum, Bloomberg estimates $3.88 billion, while Forbes says $3.7 billion.
Changing stock price, but black box
Where does that come from? We're not privy to their calculations, but the fluctuation surely relates in part to the wildly shifting value of shares of Alibaba, the Chinese e-commerce behemoth for which Tsai is now Executive Chairman. (Remember, commerce in China has suffered during the pandemic.)
As shown in the chart above, shares have dipped below $60 and risen over $300. But analysis of Tsai's overall holdings, including his current stake in Alibaba, does not necessarily reflect when and for what price he sold any shares.
Nor does it necessarily reflect the value of his real estate--like the major investments in apartments at the "supertall" 220 Central Park South.
Moreover, because Tsai's other investments are not public--Bloomberg reported earlier this month that his family office sold off most shares in U.S. companies--their valuations can't be assessed.
The bottom line
That's a pretty big divergence. It means that, while Forbes ranks Tsai #232 among the world's wealthiest, Bloomberg places him #377.
So too the divergence between Tsai's estimated maximum and minimum net worth. Bloomberg estimates a peak of $15.6 billion, while Forbes says $11.6 billion. As to a minimum, Bloomberg estimates $3.88 billion, while Forbes says $3.7 billion.
Changing stock price, but black box
Where does that come from? We're not privy to their calculations, but the fluctuation surely relates in part to the wildly shifting value of shares of Alibaba, the Chinese e-commerce behemoth for which Tsai is now Executive Chairman. (Remember, commerce in China has suffered during the pandemic.)
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| Screenshot from Yahoo Finance |
Nor does it necessarily reflect the value of his real estate--like the major investments in apartments at the "supertall" 220 Central Park South.
Moreover, because Tsai's other investments are not public--Bloomberg reported earlier this month that his family office sold off most shares in U.S. companies--their valuations can't be assessed.
The bottom line
The bottom line, of course, is Tsai remains very wealthy. I suspect Forbes is more accurate, but we shouldn't take any of the estimates as definitive.
Note that, if the team and arena company remain Tsai's biggest asset (as Bloomberg suggests, though that may not be correct), it wouldn't be surprising if he and his management team focus on new ways to raise revenues.
Below is the fluctuation, as calculated by Forbes.
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