Prokie wants all of Nets, Barclays
LAS VEGAS — Mikhail Prokhorov seems to be moving one step closer to solidifying his grip on both the Brooklyn Nets and Barclays Center, but the exact purpose for consolidating his power still remains unknown.
The Russian oligarch is looking to possibly become the sole owner of both the Nets and the $1 billion arena they play in by purchasing the remaining shares of both properties owned by Bruce Ratner, a source told the Daily News. However, the person familiar with Prokhorov’s thinking said in a brief interview that a lot of possibilities were being discussed, including Prokhorov buying out Ratner.
Prokhorov is the principal owner of the Nets, owning 80% of the team while Ratner holds the remaining stakes. Where the arena is concerned, Ratner owns 55% while Prokhorov owns 45%.
The website Netsdaily.com suggested in a story that Ratner’s motivation for selling Prokhorov his remaining shares in the Nets and Barclays is a debt-for-equity swap to settle debts he has with Prokhorov. A Prokhorov spokesperson confirmed the framework of the possible transaction in an email to the Daily News.
“We can confirm that Onexim Sports and Entertainment is looking at various ways to restructure debt owed to the company in connection with its U.S. assets. One possibility is the conversion of such debt into equity and consolidation of shares, but there are other scenarios also under consideration by Onexim and its partners, and no decision has yet been made.”
Prokhorov’s interest in going “all-in” with the Brooklyn properties was first reported by Bleacher Report’s Ric Bucher.
An announcement on the possible deal could come in the next two weeks, Bucher reported, but a Prokhorov spokesperson didn’t address the reported timetable for an announcement. Ratner has been trying to sell his shares in both the team and the arena but has yet to find an outside buyer.
Last year Prokhorov was in discussions with the group that purchased the Los Angeles Dodgers about combining some of their assets, but nothing came of it. There is a feeling around the league that Prokhorov is just looking for the right moment to unload the Nets, given the rising values of NBA teams. That he has yet to do so indicates his intention to keep the franchise, sources have told The News. While attending a Nets-Hawks game in April, Prokhorov said in April that he was interested in selling only minority stakes in the team. Read about the 10 things we’ve learned during the NBA Summer League at . . . NYDN.com/sports