Jason Kidd To Buy Jay-Z's Ownership Interest In Nets

Post #1 » by **RealGM Wiretap** » Wed Sep 4, 2013 2:27 pm

Jason Kidd is purchasing Jay-Z's 1/15th of a percent stake in the Brooklyn Nets for approximately $500,000.

“Other owners want to give Jason a part ownership of the team, and urged Jay to sell his shares to him,” according to a source.

Jay-Z was forced to sell his ownership interest in the Nets to become a sports agent.

Via New York Post

BlackFalconGSW · Post #2 » by **BlackFalconGSW** » Wed Sep 4, 2013 2:56 pm

Who cares exactly? ?

Heatin4 · Post #3 » by **Heatin4** » Wed Sep 4, 2013 3:12 pm

BlackFalconGSW wrote:Who cares exactly? ?

I Do.

BlackFalconGSW · Post #4 » by **BlackFalconGSW** » Wed Sep 4, 2013 3:35 pm

Heatin4 wrote:
BlackFalconGSW wrote:Who cares exactly? ?

I Do.

And why?!

Heatin4 · Post #5 » by **Heatin4** » Wed Sep 4, 2013 3:48 pm

BlackFalconGSW wrote:
Heatin4 wrote:
BlackFalconGSW wrote:Who cares exactly? ?

I Do.

And why?!

How many coaches you know past or present have ever had ownership of any kind?
Keep it real.

League Circles · Post #6 » by **League Circles** » Wed Sep 4, 2013 4:12 pm

It's weird that you're not allowed to own a share of a team and play for it, yet I guess you're allowed to own and coach. At least that's the way I recall it from when Michael Jordan was forced to sell or escrow his ownership shares in the Wizards when he decided to play for them.

Sam195 · Post #7 » by **Sam195** » Wed Sep 4, 2013 4:24 pm

Heatin4 wrote:
BlackFalconGSW wrote:
Heatin4 wrote:I Do.

And why?!

How many coaches you know past or present have ever had ownership of any kind?
Keep it real.

it does not really feel like an ownership stake. 1/15 come on. I know its something but even jayz said in an interview it really only entitles him to free courtside tickets at all nets home games and access to nets vip events. But I'm sure his buddy prokorov would still give him all that for free just to have him associated with the team in any capacity. He was the creative consultant for the team's black and white uniforms as well as their home-court floor design.

Badandy · Post #8 » by **Badandy** » Wed Sep 4, 2013 4:38 pm

EDIT: Mods please delete.

Ian4 · Post #9 » by **Ian4** » Wed Sep 4, 2013 4:39 pm

The roc is not in the building

Ismality · Post #10 » by **Ismality** » Wed Sep 4, 2013 5:35 pm

At that price, the Nets should be worth $750 million. However, according to Forbes the Nets are worth $530 million. Kidd over-paid.

source: http://www.forbes.com/nba-valuations/list/

thedustyfoot · Post #11 » by **thedustyfoot** » Wed Sep 4, 2013 5:55 pm

I can't wait to watch the Nets and how they are coached in the last quarter of closed games.

Paradise · Post #12 » by **Paradise** » Wed Sep 4, 2013 6:06 pm

Sam195 wrote:
Heatin4 wrote:
BlackFalconGSW wrote:And why?!

How many coaches you know past or present have ever had ownership of any kind?
Keep it real.

it does not really feel like an ownership stake. 1/15 come on. I know its something but even jayz said in an interview it really only entitles him to free courtside tickets at all nets home games and access to nets vip events. But I'm sure his buddy prokorov would still give him all that for free just to have him associated with the team in any capacity. He was the creative consultant for the team's black and white uniforms as well as their home-court floor design.

No, Jay was the one who designed the jerseys, logo and interior of the arena. His stake has a lot of power. Kidd now owns a part of the team and arena, so he's going to see millions.

asuran · Post #13 » by **asuran** » Wed Sep 4, 2013 6:13 pm

Ismality wrote:At that price, the Nets should be worth $750 million. However, according to Forbes the Nets are worth $530 million. Kidd over-paid.

source: http://www.forbes.com/nba-valuations/list/

Obviously Kidd is looking at the long game. $530m is the current value on Forbes. Maybe in 5 or 10 years it'll be $900m.
Current market value vs potential value. And Kidd has confidence in the team's potential. Maybe it'll be a flop, maybe it will be success. We will see how the team develops.

paulos22 · Post #14 » by **paulos22** » Wed Sep 4, 2013 7:01 pm

asuran wrote:
Ismality wrote:At that price, the Nets should be worth $750 million. However, according to Forbes the Nets are worth $530 million. Kidd over-paid.

source: http://www.forbes.com/nba-valuations/list/

Obviously Kidd is looking at the long game. $530m is the current value on Forbes. Maybe in 5 or 10 years it'll be $900m.
Current market value vs potential value. And Kidd has confidence in the team's potential. Maybe it'll be a flop, maybe it will be success. We will see how the team develops.

The cost to build this team was initially almost a billion dollars. For it to be valued at 530 million is a travesty. The nets earnings are in severe negative territory, so Kidd will not receive any dividends if they're operating at a loss of 17 million on an annualized basis. Especially if you have a 1/15th stake. That's like saying I'm going to build a house for $100 dollars, but then the market appraises it at $50 dollars and I'm spending $80.00 a month to maintain it. It was a bad acquisition by Kidd. Speculating the markets is no different than gambling. He could've profited off so many other investment opportunities with the $500,000 that he put into the nets. That Prokohov guy needs to sell his shares not Jay-Z

MalcolmXing · Post #15 » by **MalcolmXing** » Wed Sep 4, 2013 8:00 pm

It's even less than that.

Universe · Post #16 » by **Universe** » Wed Sep 4, 2013 8:25 pm

paulos22 wrote:
asuran wrote:
Ismality wrote:At that price, the Nets should be worth $750 million. However, according to Forbes the Nets are worth $530 million. Kidd over-paid.

source: http://www.forbes.com/nba-valuations/list/

Obviously Kidd is looking at the long game. $530m is the current value on Forbes. Maybe in 5 or 10 years it'll be $900m.
Current market value vs potential value. And Kidd has confidence in the team's potential. Maybe it'll be a flop, maybe it will be success. We will see how the team develops.

The cost to build this team was initially almost a billion dollars. For it to be valued at 530 million is a travesty. The nets earnings are in severe negative territory, so Kidd will not receive any dividends if they're operating at a loss of 17 million on an annualized basis. Especially if you have a 1/15th stake. That's like saying I'm going to build a house for $100 dollars, but then the market appraises it at $50 dollars and I'm spending $80.00 a month to maintain it. It was a bad acquisition by Kidd. Speculating the markets is no different than gambling. He could've profited off so many other investment opportunities with the $500,000 that he put into the nets. That Prokohov guy needs to sell his shares not Jay-Z

For someone who has made over $200 million in his career, I don't think spending $500,000 on the team you are about to coach can be called a bad acquisition.

urinesane · Post #17 » by **urinesane** » Wed Sep 4, 2013 10:53 pm

Is my math wrong?

$500,000 x 15 = 7.5 million not 750 million.

Am I missing something?

asuran · Post #18 » by **asuran** » Wed Sep 4, 2013 10:55 pm

urinesane wrote:Is my math wrong?

$500,000 x 15 = 7.5 million not 750 million.

Am I missing something?

1/15th of ONE percent if you read the wiretap more precisely.

But LOL if the Nets are valued at 7.5m. That is so 1980s?

caronimo · Post #19 » by **caronimo** » Wed Sep 4, 2013 11:13 pm

His ownership of the team is less than 1%.

Universe · Post #20 » by **Universe** » Thu Sep 5, 2013 12:24 am

asuran wrote:
urinesane wrote:Is my math wrong?

$500,000 x 15 = 7.5 million not 750 million.

Am I missing something?

1/15th of ONE percent if you read the wiretap more precisely.

But LOL if the Nets are valued at 7.5m. That is so 1980s?

And he only bought half of Jay-Z shares. A minority owner bought the other half. Seems like Jay-Z didn't make any money since he reportedly paid $1-million for his shares.