Joseph Tsai completes Brooklyn Nets purchase for record $2.35 billion
Friday 16 August 2019 17:39, UK
Alibaba Group Holding Ltd co-founder Joseph Tsai is buying the remaining 51 per cent stake that he doesn't already own in NBA's Brooklyn Nets and their Barclays Center arena from Mikhail Prokhorov, the team said on Friday.
Prokhorov agreed to sell his remaining stake in the Nets and full ownership of Barclays Center to Tsai for an American sports record $2.35 billion.
"It has been an honour and a joy to open Barclays Center, bring the Nets to Brooklyn, and watch them grow strong roots in the community while cultivating global appeal," Prokhorov said in the statement.
"The team is in a better place today than ever before and I know that Joe will build on that success, while continuing to deliver the guest experience at Barclays Center that our fans, employees, and colleagues in the industry enjoy."
The Nets signed former Most Valuable Player Kevin Durant, who led the Golden State Warriors to three consecutive NBA Finals, and fellow All Star Kyrie Irving this off-season.
Tsai, who paid $1 billion for a 49 per cent share of the Nets in 2018, is paying an additional $1.35 billion for the remaining 51 per cent share, according to multiple reports.
Tsai is the co-founder of Alibaba e-commerce company. His purchase from Russian billionaire Prokhorov and full control of the franchise is pending approval from the NBA's Board of Governors.
The Nets said Friday the transaction is expected to be final in September. The team also confirmed CEO Brett Yormark would resign after the transition of ownership is finalised.
"I've had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago," Tsai said in the statement. "He hired a front office and coaching staff focused on player development, he supported the organisation with all his resources, and he refused to tank. I will be the beneficiary of Mikhail's vision, which put the Nets in a great position to compete, and for which I am incredibly grateful."
Prokhorov purchased the team from Bruce Ratner in 2010 and completed a move to Brooklyn and Barclays Center in 2012.
The purchase price exceeds the previous record sale price of $2.2 billion, the cost to David Tepper to buy the Carolina Panthers and Tilman Fertitta to buy the Houston Rockets.
