« East Harlem Mall to Add Food Court | Main | Preview Of Eminent Domain Doc "Battle of Brooklyn" »
February 16, 2011
Stern: Ratner Group Lost "Several Hundred Million" Selling Nets
NetsDaily
In defending his and owners' hardline in labor talks, David Stern told Bloomberg News that the Nets old ownership group, headed by Bruce Ratner, took a serious hit when they sold the franchise to Mikhail Prokhorov.
While discussing the NBA negotiations --and the owners' hardline, Woodruff asked, "Is it a contradiction to say that the current model does not work, and yet, franchises are being bought for huge sums by billionaires like Mikhail Prokhorov who just bought the Nets?"
"Stop there," said Stern, interrupting. "He just did [buy the Nets], and the previous ownership lost several hundred million dollars on that transaction".
While Ratner, his partners and parent group, Forest City Enterprises, did lose more than $200 million, Prokhorov assumed 80% of team debt as part of his purchase. He also agreed to eat up to $60 million in losses while the team is still in New Jersey, bringing the price tag for the team and part ownership of Barclays Center to nearly a half billion dollars.
David Stern Interview (Video) - Judy Woodruff - Bloomberg Television
NoLandGrab: Boo hoo. Ask Jay-Z, it's a business, man. But let's be clear. Bruce Ratner didn't really lose anything, when you factor in the full deal — Atlantic Yards. So who is left holding the bag? Residents in and around Prospect Heights, and New York's taxpayers.
Posted by eric at February 16, 2011 9:57 AM