Russian billionaire sells Brooklyn Nets: what else does Prokhorov own in the US

In recent years, Russian billionaire Mikhail Prokhorov has systematically sold his property in Russia, and today the basketball club has been on the waiting list Brooklyn Nets - its largest asset. But in the near future a businessman may part with the most expensive part: the advisory financial committee of the US National Basketball League, as reported Forbesapproved the sale of 49% Brooklyn Nets. The last word now remains with the board of governors of the NBA, after which the block of shares is expected to be sold.

“My goal is to find a local minority partner to strengthen the presence of the team in New York, in order to expand our business and establish public relations. I am betrayed Nets and remain the owner of a controlling stake in the team, ”he said earlier in an interview with Bloomberg, commenting on the possible sale. Arena assumed Barclays Center will remain under the control of the Russian billionaire.

Ball game

Prokhorov bought a controlling stake Brooklyn Nets (80%) and 45% of stadium shares in 2010, paying for all $ 223 million. The Russian businessman became the first foreign owner of the NBA team. Then the club bore the name New Jersey Nets and based in New Jersey.

The team with the 50-year history did not make an impression of a successful investment: in the last season before the sale, she won the 43 match and lost the 48, for the second year in a row without going to the playoffs.

But it seems that this is exactly what attracted Prokhorov. “The only way is upstairs. I like to look for cheap assets with problems. It energizes me, ”the billionaire explained to the magazine. Bloomberg Markets. In the next season after the purchase, the team lost 16 times in a row.

Owner Nets actively invested in strengthening the composition, turning the club into one of the leaders of the NBA in terms of payroll and luxury tax paid for exceeding the salary ceiling.

But despite this, Brooklyn only managed to exit three times play-off, and last season it became the worst team of the Eastern Conference, which, perhaps, reinforced Prokhorov’s thought that the asset needed to be parted, according to the publication.

Besides Brooklyn Nets at Barclays Center is based on the US National Hockey League sign team - New York Islanderswho signed a contract for 25-year rent and made Barclays Center their home arena.

The stadium paid the team an average of $ 53,5 million per year in exchange for control over business operations, including revenue from the sale of tickets and souvenirs with the symbols of the team.

As a result, this decision was not very successful for both parties. Hockey players complained about the bad ice, the audience - the unfortunate location of the stands and bad lines of sight. The result was a sharp decline in attendance at team matches, and now New York Islanders They want to terminate the lease agreement and look for a new place for their home arena.

In January 2017 years Forbes appreciated Brooklyn Nets $ 1,8 billion with annual revenue of $ 223 million. A year earlier, the club’s value was estimated at $ 1,7 billion with revenue of $ 220 million, and in 2015 year it was $ 1,5 billion (with revenue of $ 212 million).

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