Joseph Tsai reportedly purchasing remaining 51% share of Brooklyn Nets, for $1.35B

[RCM88x]

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https://nypost.com/2019/08/13/joseph-tsai-to-buy-rest-of-brooklyn-nets-for-record-2-35b/

[Dominator83]

Prokerov cashing out like a champ

[RCM88x]

Prokerov cashing out like a champ

Basically just made $1 Billion in 4 years.

[levon]

Prokerov cashing out like a champ

Basically just made $1 Billion in 4 years.

Now he can finally afford Clippers season tickets.

[VanWest82]

Hope the deal includes the real estate. Otherwise...yikes!

Edit: I predict these 4B+ sports franchise valuations are going to look terrible sooner rather than later (if not immediately). Using Forbes numbers (2019 Nets = ~50M NI) and an aggressive discounted cash flow analysis over ten years instead of five @ only 5% discount rate, Nets should be worth ~400M.

Perhaps you might argue that's an impractical valuation method because these franchises are really rare pieces of art and hold value beyond the financials. Sure, except there are ~2000 billionaires in the world. Let's assume that 5% are die hard NBA fans and want to own an NBA team regardless of supporting financials. So 100 potential owners, many of which wouldn't be able to come up with the full 4B, and many of which already own an NBA team. Where is the NBA going to get all these future "collectors"?

[niQ]

[RaptorPride]

A Canadian brother!

[Imon]

I think the thread title could use some clarification.

From my reading of the article it seems he already paid $1 billion last year for a minority stake in the team and now he gets to buy the rest of the team for an additional $1.35 billion for a total of $2.35 billion. Not that he's paying $2.35 billion for 51% share of the team. Seems like the most expensive thing ever put on layaway.

[JB2]

Dolan.. pay attention.

[BoogieTime]

Why does Prokhorov want to sell?

[RCM88x]

I think the thread title could use some clarification.

From my reading of the article it seems he already paid $1 billion last year for a minority stake in the team and now he gets to buy the rest of the team for an additional $1.35 billion for a total of $2.35 billion. Not that he's paying $2.35 billion for 51% share of the team. Seems like the most expensive thing ever put on layaway.

Yeah, the all reports are pretty missleading, I'll clarify the title.

[youngthegiant]

I thought they would be worth more after KD and Kyrie joined.

[RCM88x]

Why does Prokhorov want to sell?

Probably needs to help Putin rebuild his nuclear weapons program.

[LOUiS-D]

Why does Prokhorov want to sell?

From what I gather his initial motive to sell a 49% share came after his failed attempt to challenge Putin in the Russian election. I'm not sure about the details of it, but challenging Putin had financial ramifications for him because Putin makes and breaks oligarchs.

[dorkestra]

Why does Prokhorov want to sell?

Probably needs to help Putin rebuild his nuclear weapons program.

There is something awfully funny about one of America's major sports leagues enriching a Russian oligarch while current Russo-American relations have flared.

[RCM88x]

Why does Prokhorov want to sell?

Probably needs to help Putin rebuild his nuclear weapons program.

There is something awfully funny about one of America's major sports leagues enriching a Russian oligarch in the midst of current Russo-American relations as they are.

Especially with the team going to a man who owns Alibaba and has ties to the Chinese communist party, less than 12 hours after the tariff's on Chinese exports were weakened.

[dorkestra]

Probably needs to help Putin rebuild his nuclear weapons program.

There is something awfully funny about one of America's major sports leagues enriching a Russian oligarch in the midst of current Russo-American relations as they are.

Especially with the team going to a man who owns Alibaba and has ties to the Chinese communist party, less than 12 hours after the tariff's on Chinese exports were weakened.

Haha exxxxactly

[LOUiS-D]

Probably needs to help Putin rebuild his nuclear weapons program.

There is something awfully funny about one of America's major sports leagues enriching a Russian oligarch in the midst of current Russo-American relations as they are.

Especially with the team going to a man who owns Alibaba and has ties to the Chinese communist party, less than 12 hours after the tariff's on Chinese exports were weakened.

I'm calling it now. Kim Jong-Un will buy the Nets for $4.7B less than 6 hours after launching an ICBM at the east coast.

[SWYM]

Why does Prokhorov want to sell?

He paid ~350mn for Nets and OpRights to Barclays.

10x in less than 10 years much?

[BoogieTime]

Why does Prokhorov want to sell?

He paid ~350mn for Nets and OpRights to Barclays.

10x in less than 10 years much?

I understand the team is worth a lot more now, but shouldn’t the team continue to appreciate if the league is healthy?

Either he needs cash now for some reason, has conflicting interests or he foresees the league taking a tailspin