NBA: Russia's richest man, makes bid to buy New Jersey Nets

[Usha Starchild]

Russia's richest man confirms bid for New Jersey Nets - ESPN

"Prokhorov, a former nickel mining baron, boasts that if his move is successful, it would be the first time a National Basketball Association club would come under foreign control."

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MOSCOW -- Russia's richest man, Mikhail Prokhorov, has made a takeover bid for the New Jersey Nets, the tycoon confirmed on his blog on Tuesday.

Prokhorov, a former nickel mining baron, boasts that if his move is successful, it would be the first time a National Basketball Association club would come under foreign control.

Prokhorov's proposals, sent to existing Nets shareholders over the weekend, would see his Onexim group provide a loan to build a substantial part of a new arena, according to a post on his Web site.

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AP Photo
Would-be Nets owner Mikhail Prokhorov, seen in 2008, has an estimated net worth of $9.5 billion.


Onexim would also receive a controlling stake of the NBA team for a "symbolic" price, the post said. Sources close to the billionaire have previously estimated the overall value of any deal at $700 million.

"For our Onexim group the realization of this very lucrative business project, whose participation was made possible by the world crisis [never in history have foreigners owned an NBA club], is another interesting sports development," Prokhorov wrote.

Nets and NBA officials declined to comment, but the team said last week that they have received interest from potential investors in the team.

NBA rules do not bar overseas ownership, and transfer of ownership requires background checks on a new owner as well as approval by 75 percent of the league's 30 owners.

Russian oligarchs spent money on yachts, mansions and sports clubs as their investments rose with soaring commodity prices in recent years. In the highest-profile deal, Roman Abramovich bought London soccer club Chelsea in 2003.

While many of his Russian peers sought state bailouts, the 44-year-old Prokhorov, a former banker and mining executive, is flush with money after cashing out of assets in 2008 before the global crisis caused commodity prices to crash.

A former chief executive of the world's largest nickel firm, Norilsk Nickel, Prokhorov has an estimated fortune of $9.5 billion, according to the latest Russian edition of Forbes magazine.

Developer Bruce Ratner owns the Nets, which Forbes magazine in December ranked as the 26th most valuable of the 30 NBA teams, with an estimated value of $295 million.

The club plans to move from New Jersey to a new arena in Brooklyn.

In addition, Ratner's company, Forest City Ratner, proposes constructing 16 office and apartment buildings, as well as upgrading subway, utility and other infrastructures as part of a larger project.

Legal disputes, financing problems and challenges from local community groups have dogged the project for years. In June, Ratner dropped architect Frank Gehry to cut costs, further irking critics as Gehry's design was a key factor in winning public support for the project in the first place.

[Twobit Whore]

Not sure why it would matter. Aren't the Mariners owned by the Japanese? And the Raiders are owned by the undead.

[Braen]

Originally Posted by Twobit Whore

And the Raiders are owned by the undead.

ZING!

[Ham n Cheese]

just needs league approval now I believe

[Quineloe]

Originally Posted by Twobit Whore

Not sure why it would matter. Aren't the Mariners owned by the Japanese? And the Raiders are owned by the undead.

it matters when the guy decides to start shitting millions into the league, buying the best players from other teams. I don't know if the NBA works like that, but Abramovich definitly had an impact with Chelsea FC

[Edko]

Wasn't Jay Z gonna buy it out piece by piece? What happened there?

[Pharazon]

Originally Posted by Quineloe

it matters when the guy decides to start shitting millions into the league, buying the best players from other teams. I don't know if the NBA works like that, but Abramovich definitly had an impact with Chelsea FC

The NBA luxury tax discourages this from happening. Even billionaires don't really want to pay three dollars for every one on contracts that approach or exceed 100M. I don't know the details, but there are plenty of rich NBA owners and it isn't too much of a problem. This guy is the richest man in Russia, but he wouldn't be the richest NBA owner (Paul Allen). Allen could afford to go way over the salary cap, but hasn't done so.

As a fan you'd definitely prefer to have an owner with more money though who isn't trying to pinch pennies. Still hoping Larry Ellison buys the Warriors. Apparently he's been trying, but the current asshat owner who all the fans hate is hesitant or asking for too much.

[Araxen]

Most owners will pay the luxury tax if they feel they are very close to winning a championship. I know Taylor paid it for a year or two when the Timberwolves felt they were close to winning one. It's a very short window that owners will pay the tax unless your team is the NY Knicks.

Personally I feel the NBA's Salary Cap is the most fair and the best due to the Larry Bird rule. If you're a good a drafting talent you don't worry about losing your players and all the work getting these players to where they need to be unless you really piss them off. It's not 100% foolproof you'll keep the superstars you draft but it helps immensely.