Nets owner nears minor stake deal
Mikhail Prokhorov’s search for a Nets buyer is reportedly nearing an end.
ESPN on Friday reported that the Nets owner has agreed in principle to sell a 49 percent minority stake in the team to Joseph Tsai, the executive vice chairman and co-founder of Chinese e-commerce giant Alibaba.
The deal, which values the franchise at $2.3 billion, includes the option for Tsai to take over controlling interest of the Nets in several years, according to the report.
Prokhorov, the Russian billionaire who announced his intention to sell a minority stake last December, will remain principal and operating owner for the next four years, per the report. Tsai would be able to activate his option and take over majority control of the franchise at that time.
Tsai, 53, will not have management or business responsibilities as a minority partner. He is purchasing the 49 percent stake for $1.2 billion, according to CNBC.
The purchase does not include the acquisition of Brooklyn’s Barclays Center, of which Prokhorov owns a majority share, per ESPN. A new long-term lease for the Nets is reportedly in the works.
Tsai has been pleased with how Nets general manager Sean Marks and coach Kenny Atkinson are running the team, and plans to bring international business opportunities to the team through his connections throughout Asia, according to the report.
Prokhorov took an 80 percent stake in the then-New Jersey Nets in 2010 before moving the team to Brooklyn in 2012 and taking full ownership in 2015.
The Nets last made the playoffs in 2015, losing in the first round to the Atlanta Hawks after a sub-.500 regular season.
They finished with the NBA’s worst record last year at 20-62, but have won three of their first five games this season, including a win over the Eastern Conference champion Cavaliers.