AP sources: Tsai to buy rest of Nets, arena for $3.4 billion
NEW YORK (AP) — Joe Tsai has agreed to buy the remaining 51 percent of the Brooklyn Nets and Barclays Center from Mikhail Prokhorov in deals that two people with knowledge of the details say are worth about $3.4 billion.
Terms were not disclosed Friday, but the people told The Associated Press that Tsai is paying about $2.35 billion for the Nets — a record for a U.S. pro sports franchise — and nearly $1 billion in a separate transaction for the arena. They spoke on condition of anonymity because the transactions have not yet been completed.
Tsai is the co-founder and executive vice president of the Alibaba Group, the Chinese e-commerce giant. He already had purchased a 49 percent stake in the team from Prokhorov in 2018, with the option to become controlling owner in four years.
Instead, he pushed up that timeline for full ownership of a team on the rise after signing superstars Kevin Durant and Kyrie Irving in July.
Prokhorov, a Russian billionaire, became the NBA's first non-North American owner in 2010 and oversaw the Nets' move from New Jersey to Brooklyn two years later. He spent big in the first couple years after the move in a quest to chase a championship, but the team soon became one of the worst in the NBA before rallying to return to the playoffs last season.
"It has been an honor 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," Prokhorov said in a statement. "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."
The deal is expected to be completed by the end of September and is subject to approval by the NBA's Board of Governors.
That would put Tsai, a native of Taiwan, in full control of the team by the time the Nets head to China to play two exhibition games against the Los Angeles Lakers in October. That comes at the start of a season of renewed excitement for the Nets, who just three seasons ago won an NBA-worst 20 games but are set to make a big move up the standings after landing two of the best players on the market when free agency opened.
"I've had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago. He hired a front office and coaching staff focused on player development, he supported the organization with all his resources, and he refused to tank," Tsai said. "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."
Brett Yormark, the CEO of BSE Global, which manages the team and the arena, will oversee the transition before leaving for a new role.