Prokhorov agrees to promote Nets, Barclays to Tsai

Russian billionaire Mikhail Prokhorov has formally agreed to promote his remaining stake within the Brooklyn Nets and full possession of Barclays Heart to Joe Tsai, the crew introduced Friday.

Tsai, who paid $1 billion for a 49% share of the Nets in 2018, is paying an extra $1.35 billion for the remaining 51% share, sources confirmed to ESPN earlier within the week. As well as, Tsai can pay almost $1 billion in a separate deal for Barclays Heart, a supply instructed The Related Press.

This buy by Tsai, the co-founder of Alibaba, one of many world’s largest e-commerce corporations, nonetheless wants approval from the NBA’s board of governors, which already accredited the primary transaction.

A press release from the Nets stated the transaction must be finalized by the top of September and that Brett Yormark, who has served as CEO of the Nets since 2005, will step down from his submit after overseeing the transition to new possession.

“I’ve had the chance to witness up shut the Brooklyn Nets rebuild that Mikhail began a number of years in the past,” Tsai stated within the assertion. “He employed a entrance workplace and training workers centered on participant improvement, he supported the group with all his sources, and he refused to tank. I would be the beneficiary of Mikhail’s imaginative and prescient, which put the Nets in a terrific place to compete, and for which I’m extremely grateful.”

Outgoing proprietor Mikhail Prokhorov can be remembered for being a part of getting the Nets throughout the Hudson River and into Brooklyn, a transfer that dramatically raised the profile of the franchise. EPA/Andrew Gombert

Prokhorov purchased the Nets from actual property developer Bruce Ratner in 2010, permitting the crew to finish its transfer into Brooklyn, and Barclays Heart, in 2012.

“It has been an honor and a pleasure to open Barclays Heart, convey the Nets to Brooklyn and watch them develop sturdy roots in the neighborhood whereas cultivating world attraction,” Prokhorov stated within the assertion. “The crew is in a greater place as we speak than ever earlier than and I do know that Joe will construct on that success whereas persevering with to ship the visitor expertise at Barclays Heart that our followers, staff and colleagues within the business get pleasure from.”

The $2.35 billion whole worth of the deal for the crew, not together with the sector, makes it the biggest buy worth of an American skilled sports activities crew, surpassing the $2.2 billion paid by David Tepper to purchase the Carolina Panthers and by Tilman Fertitta to purchase the Houston Rockets.

TeamValue*New York Knicks$four billionLos Angeles Lakers$three.7 billionGolden State Warriors$three.5 billionChicago Bulls$2.9 billionBoston Celtics$2.eight billionBrooklyn Nets$2.35 billionHouston Rockets$2.three billion* Forbes journal 2019 rankings

Yormark got here to the Nets from NASCAR and helped usher the franchise to Brooklyn from its prior houses in East Rutherford and Newark, New Jersey. Having initially come aboard below Ratner, Yormark stayed in his submit throughout Prokhorov’s possession over the previous 9 years.

“With out Brett’s revolutionary foresight and management, we might not be the place we’re as we speak with the Nets and Barclays Heart,” Prokhorov stated. “Brett had all the time made it clear to me that when the sector and crew offered, he would transfer on and start his subsequent journey. Thanks to Brett, who has been a real associate and pal over the previous 15 years.”

The crew spent large early in Prokhorov’s tenure, racking up a report luxurious tax invoice in 2013-14 earlier than retrenching in latest seasons after the failure of the commerce with the Boston Celtics for Kevin Garnett and Paul Pierce in 2013. This summer time, the crew made an enormous splash in free company, signing Kevin Durant, Kyrie Irving and DeAndre Jordan.

Earlier this yr, an funding group led by Tsai bought the WNBA’s New York Liberty from James Dolan.

ESPN’s Tim Bontemps and The Related Press contributed to this report.