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May 12, 2010
Ratner's Reign of Error Ends. Prokhorov's Plaything Begins
Develop Don't Destroy Brooklyn
Earlier today the NBA approved the transfer of ownership of the league's worst team, the New Jersey Nets, from Bruce Ratner to Russia's richest man Mikhail Prokhorov.
Thus ends Ratner's 6-plus years of staking his claim to the title of one of the worst, if not the worst, owners in sports history (that's what happens when you buy a team to do a land grab.)
Now what do we have? A project proposed by a Cleveland-based developer and approved by an unelected, unaccountable state agency is now in a large part under control of a Russian oligarch who bailed out Ratner.
Related coverage...
Field of Schemes, NBA approves Nets sale to Prokhorov
So much for that whole Zimbabwe thing: The NBA Board of Governors (in other words, the league's owners) voted yesterday to approve Mikhail Prokhorov as owner of the New Jersey Nets. Prokhorov now becomes the league's first non-North American owner, as well as its second richest after the Portland Trail Blazers' Paul Allen.
The final tally: Prokhorov pays $200 million, plus assumed $180 million in team debt, in exchange for 80% of the team and 45% of their new Brooklyn arena. Prokhorov also agrees to buy $100 million worth of arena bonds, something that looks like a worse deal for him now that the bonds may fall below junk status.
The Star-Ledger, New Nets owner Mikhail Prokhorov intends to give fans 'plenty to cheer about'
The Russian oligarch received official approval from the NBA Board of Governors to purchase controlling ownership in the team Tuesday, setting the stage for the official closing of the transaction today.
Then, presumably, there will be something to cheer about — notably, the reawakening of a franchise that had pinched every penny under owner Bruce Ratner the last few seasons.
...He purchases the Nets at a time when NBA business is bad business. The league and its 30 teams will lose roughly $400 million this season, Stern disclosed during All-Star Weekend; and for the first time in decades, most franchises are no longer appreciating in value.
The Nets themselves lost $64 million in fiscal 2009, according to SEC filings. So desperate for a wealthy partner, Ratner approached Prokhorov in July, and their partnership saved the Atlantic Yards project that had been Ratner’s dream since he purchased the Nets for $300 million in 2004.
Brownstoner, Electeds Protest Prokhorov Too Late
Also yesterday, a group of five Brooklyn elected officials released a letter to NBA commission David Stern protesting the sale to Prokhorov on the grounds of his prior business relationship with zimbabwe's Robert Mugabe. The only problem? The letter was sent after the NBA had already made its decision. Still, as Atlantic Yards Report points out, it was unlikely the letter would have had much impact after similar concerns from a New Jersey congressman had been brushed off.
The Brooklyn Paper, Tsar power! NBA approves Prokhorov to take over Nets
Put the borscht on the menu at the Barclays Center — a Russian billionaire now owns the Brooklyn-bound New Jersey Nets!
The New York Times, Prokhorov To Take Over Nets
As expected, the N.B.A. board of governors approved the Russian billionaire Mikhail D. Prokhorov’s deal to be the new majority owner of the Nets. The approval was unanimous among the teams that voted. One team, the Chicago Bulls, did not vote.
NoLandGrab: We're ordering our Bulls jerseys now.
NY Daily News, Russian approved for Nyets
Ratner had been planning to move the Nets to Brooklyn for years but hit numerous delays due to legal and financial issues. The move became official only after Prokhorov - who will be the second-richest owner in the league behind Portland's Paul Allen - agreed to buy the team.
Prokhorov is believed to be in Russia but is expected to be in New Jersey on Tuesday to represent the Nets at the draft lottery.
The Supreme Court Jester, A Short Alphabetical History of the Nets from Dr. J to Jay-Z
Will he rename the team the Ets? That way they could be the N.Y. ets --with a motto like "Get to "no" the NYets." Plenty of people have said "no" to the Nyets in opposing their new home in the Atlantic Yards proposed by Forest City Developer Bruce Ratner. The latest suit involves real-estate entrepreneur Peter Williams, who says he owns some "air rights" above the site of the planned Nets arena in Downtown Brooklyn -- and the billion-dollar project can't be completed until he settles the issue with the developer.
Posted by eric at May 12, 2010 10:43 AM