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January 27, 2011
NBA Team Valuations: #21 New Jersey Nets
Forbes.com
According to Forbes's annual rankings of NBA team finances, the Nets actually increased in value by 16% this year, but they have a whopping debt-to-value ratio of 224% — the only team in the league with more debt than equity.
The skinny
In May, 2010 Russian billionaire Mikhail Prokhorov invested $293 million in equity for an 80% interest in the Nets, a 45% stake in Brooklyn Arena, LLC, the operating company that will run the team's new building, and up to 20% of Atlantic Yards Development LLC, which will develop real estate near the new Barclays Center arena. We estimate that the enterprise value for the team and arena comes to $365 million. The Nets plan to move into their state-of-the art facility in 2012 and are expected to see sponsorship, premium seating and concession revenues of $75 million a year, $60 million more than what the team received at the IZOD Center last season. Debt service on the new building, which was financed with $511 in PILOT bonds, will be between $27 million and $30 million a year.
NoLandGrab: Can you guess the NBA's new most-valuable team? The New York Knicks.
Posted by eric at January 27, 2011 9:19 AM