Report: Prokhorov has hired bank to explore sale of Nets
Just two months after denying he would be willing to give up control of the Brooklyn Nets, Russian billionaire Mikhail Prokhorov could be preparing to sell the franchise.
Prokhorov has hired investment bank Evercore Partners to explore selling the Nets, according to a report from Bloomberg News. The report sites two anonymous sources who say Prokhorov is looking to sell his stake in the Nets, with a spokesperson for Prokorohov releasing the following statement:
As we have said for many months, ownership is always open to listening to offers - that's just good business. There is nothing imminent in terms of a sale of any stake in the team.
The first foreign-born owner of an NBA team, Prokohorov owns 80 percent of the Nets, with former majority owner Bruce Ratner holding the 20 percent stake. Ratner had previously retained Evercore to explore selling his stake, too, so it's possible 100 percent of the franchise could be up for purchase.
Prokhorov also owns 45 percent of Barclays Center, the team's new arena, and Ratner owns the other 55 percent.
The team alone is said to be worth an estimated $1.3 billion, with Prokhorov's total holdings in the team worth an estimated $2 billion. He paid $220 million for his share of the Nets, meaning a large profit is possible, though the team lost $144 million last season.
Playing in the league's top media market with a new stadium - which will also have the New York Islanders as a tenant soon - should make the Nets an attractive purchase. The issue will be putting a group together with the resources to spend upwards of $2.5 billion, should the entire stake in the franchise and facility be sold together.
If the Nets get the same mark-up over their Forbes valuation that the Clippers did, sale price would be ~$2.54 billion.
— Jared Dubin (@JADubin5) January 13, 2015
Guggenheim Sports and Entertainment are a possible candidate, as the investment firm with more than $220 billion in estimated assets, including the Los Angeles Dodgers, had previously spoken with Prokhorov about a potential partnership.
The report from Bloomberg speculates that Prokhorov could be looking to sell in part due to the weakened Russian ruble, with declining oil prices hurting the Russian economy.
The Atlanta Hawks are also up for sale, though they are valued at far less than the Nets and should attract an entirely different set of potential investors.