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July 26, 2009
Sources: Ratner Looks To Sell Nets
New York Post
By Fred Kerber
This article was not included in yesterday's round up of the news of a possible sale of the New Jersey Nets.
Faced with mounting financial losses that triggered cost-cutting throughout the organization, The Post has learned that Nets owner Bruce Ratner is actively investigating the feasibility of selling the team, despite a decidedly down seller's market, multiple team and league sources said.
In fact, several of the sources claim the team is definitely up for sale, though Ratner is determined to try to keep the team headed for Brooklyn and wants to maintain a piece of the team.
"I know definitely he has been thinking about doing it [selling]," one source close to the situation said. "But now is not the time. And if he sells, what about the building? Does he sell just the team? Then you're in New Jersey for a couple years losing a ton of money."
There have been "preliminary discussions" with some investors viewed as potential buyers, sources said, but the extent and seriousness of the talks were not clear.
"After this year, the Nets will have one of, if not the, lowest payroll in the league, which could make them attractive," said one source associated with the team. "That they're trying to sell is not even an issue any more."
"They're up for sale," a minority ownership source said flatly.
...
A critical component of the Brooklyn move will be the sale of an estimated $650 million in tax exempt bonds before a Dec. 31 deadline. The Empire State Development Corp. hopes to start issuing the bonds in September.
The Nets have reduced their office workforce by approximately 25 percent. Most non-basketball employees have faced Friday furloughs in the summer, reducing their pay by 20 percent. Assistant coaches accepted significant pay cuts in order to keep all of them employed -- rather than see one lose his job, the four remaining assistants on coach Lawrence Frank's staff agreed to salary reductions equal to the cost of one salary. The Nets thus far have been mute in free agency.
Posted by steve at July 26, 2009 6:05 AM