The Brooklyn Nets announced that their owner Mikhail Prokhorov agreed to sell the team to Joseph Tsai, and also, the full ownership of the Barclays Center.
Official: Mikhail Prokhorov to sell controlling interest in Brooklyn Nets and full ownership of Barclays Center to Joe Tsai https://t.co/71RhUCI60u
— Brooklyn Nets (@BrooklynNets) August 16, 2019
As ESPN confirmed earlier this week, Tsai, who paid $1 billion for a 49% share of the Brooklyn Nets in 2018, is paying an extra $1.35 billion for the remaining 51% share. Additionally, Tsai will pay almost $1 billion in a separate deal to purchase Barclays Center. The NBA’s board of governors already approved the first transaction, but Tsai will have to wait on them to approve this one as well.
According to a statement from the Nets, the transaction will likely be finalized by the end of next month. The team also announced that CEO Brett Yormark is stepping down from his position, which he held since 2005.
“I’ve had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago,” Tsai said in the statement. “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. 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.”
Prokhorov became the Nets owner in 2010 when he bought the team from real estate developer Bruce Ratner.
“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 the 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 investment by Mikhail Prokhorov in 2010 might be the biggest net return in sports history. $223M paid (which was essentially covering the debt at the time) in 2010 for 80% of the Nets and 45% of the Arena. The team and Arena are now projected to sell for $3.5 Billion.
— Bobby Marks (@BobbyMarks42) August 16, 2019
The $2.35 billion total value of the deal for the team makes it the most substantial purchase price for an American professional sports team. The amount surpasses the $2.2 billion paid by David Tepper to buy the Carolina Panthers and by Tilman Fertitta to buy the Houston Rockets.
