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August 6, 2012
Nuts for the Nets
How a freewheeling Russian businessman turned the NBA's doormat into its hottest property.
Crain's NY Business
by Daniel Massey
Team Hype takes it to the next level.
In February, the owner of the Brooklyn Nets, Mikhail Prokhorov, appeared on a Russian television comedy show called Spotlight Paris Hilton, and offered a musical tribute to his co-owner, hip-hop star Jay-Z.
"Mr. Jay-Z, this rap is for you," went the English portion of the lyrics. "Mr. Jay-Z, this is the first presentation/of real rap music from Russian Federation. Mr. Jay-Z, you are not alone/Mikhail Prokhorov on the microphone."
According to Mr. Prokhorov, a reprise is in the works, but this time in downtown Brooklyn, where Jay-Z will open the $1 billion Barclays Center with a series of sold-out concerts this fall. "Yes, I will rap at his concert," Mr. Prokhorov informed Crain's via email. "I am in rehearsals now 10 hours a day and plan to demand joint billing."
...Of late, Jay-Z has done everything short of taking tickets. He tried to recruit superstars LeBron James and Carmelo Anthony to the team; he became a director of the company that owns the Barclays Center; his 40/40 Club will have a location at the arena; he created the team's new logo and helped design high-end arena suites; an ad firm he co-owns devised the inaugural Brooklyn Nets campaign, which features the phrase "Hello Brooklyn," the title of a Jay-Z song; his choreographer is working with the Nets dance team; and the bodyguard for his wife, Beyoncé, was named the Nets' director of security.
The hometown star's mega-presence belies the fact that his stake in the team was likely diluted to less than a third of 1% with Mr. Prokhorov's arrival, NetsDaily said.
...All of Jay-Z's pizzazz and Mr. Prokhorov's money won't mean much if the team doesn't improve markedly on its 22-44 record last year.
NoLandGrab: As Norman Oder pointed out yesterday, the taxpayers are largely responsible for creating the Nets' upside.
Posted by eric at August 6, 2012 9:44 AM