Mikhail Prokhorov wants to sell 49 percent of the Brooklyn Nets
Sixteen months after taking full ownership of the Brooklyn Nets, Russian billionaire Mikhail Prokhorov has announced he is looking sell a sizable — though still minority — stake in the club.
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In comments reported by Russian media outlet and relayed by the Associated Press, Prokhorov said that “49 percent of the Brooklyn shares are up for sale,” and that “currently the process is going on and we are looking for a buyer.” According to NetsDaily, Prokhorov also confirmed in conversations with Russian media that he’s committed to the Nets and will remain the majority owner of the team.” Nets general manager Sean Marks and head coach Kenny Atkinson are in Moscow to meet with Prokhorov and discuss offseason plans after a (perhaps secretly not really all that) disappointing 20-62 season, and, according to NetsDaily, to watch “CSKA Moscow and free agent [point guard] Milos Teodosic play Baskonia in the Euroleague playoffs.”
Adrian Wojnarowski of The Vertical reported in June of 2014 that Prokhorov, intrigued by the $2 billion purchase price that Steve Ballmer shelled out for the Los Angeles Clippers, had become “open to overtures from potential buyers” for the Nets, though he hadn’t initiated any such conversations or put up a “for sale” sign or anything.
“My position is that I will not give up control of the team,” Prokhorov said in November 2014, according to AFP. “But I am quite happy when someone sends me a nice offer, without taking my control. I think for the time being nothing is imminent, but I still think it’s not bad to just listen.”
Another round of reports circulated in January of 2015 that Prokhorov had hired a firm to help him sell the team, which suggested he might be doing a bit more than just listening. A Nets spokesperson insisted no deal was imminent, though, and that this was an “always be prepared” sort of move.
In December of 2015, Prokhorov swung the other direction, adding to his 80 percent stake in the Nets and 45 percent stake in Barclays Center by assuming full ownership of the team and its home arena in a deal valued at a total of $1.9 billion. (In February of 2017, Forbes valued the Nets at $1.8 billion, though similar valuations have been criticized by NBA owners in the past as “far too low”.)
At the time that Prokhorov bought 100 percent of the team and its home gym, observers noted that owning the Nets outright would make it easier for Prokhorov to sell a minority stake in the franchise. He remained open to discussing deals in the months after his purchase …
Prokhorov, the businessman: `I am very open to any kind of offers. The more the better. For the time being, for me, that means nothing.'
— Scott Soshnick (@soshnick) February 17, 2016
… and in November of 2016, he hired privately held investment bank Allen & Co. to find a “local minority investor” in the team to “further strengthen the team’s New York presence in order to expand upon our business and community relationships.” That search is still ongoing, and now we know just how large a stake is up for grabs.
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Dan Devine is an editor for Ball Don’t Lie on Yahoo Sports. Have a tip? Email him at devine@yahoo-inc.com or follow him on Twitter!
