The Brooklyn Nets may be the next NBA franchise to have an ownership change. Though there hasn’t been any major talk reported between the Nets ownership and buyers, there is still reason to believe that the team is very much for sale.
While nothing official has taken place, it would be irresponsible to ignore the reports being made that Nets owner Mikhail Prokhorov is fielding offers as they come. Surely this is can be seen as a formality more than anything, but interest from the Guggenheim Sports and Entertainment Assets group may be the closest thing to a legitimate buyer
The ownership of the Brooklyn Nets is in “ongoing discussions” with Guggenheim Sports and Entertainment Assets, owners of the Los Angeles Dodgers, on a “combination of assets.” Mikhail Prokhorov would remain in control of the Nets and Bruce Ratner would remain in control of Barclays Center, say sources close to the discussions.
In the discussions, the team is being valued at $1.7 billion and the arena at $1.1 billion, said multiple sources. There is no agreement yet, nor a deadline for a conclusion of the discussions. The next step would be an agreement in principle followed by a closing. The combined assets of a new entity could be as high as $8 billion.
The discussions are continuing, said one source. Another source says that Guggenheim’s president, Todd Boehly, met in Moscow earlier this week with Prokhorov, Ratner, and CEO Brett Yormark.
It should be noted the reports surrounding the team are interesting because the current ownership group with the Nets are relatively new themselves. Mikhail Prokhorov purchased the team in 2010, and though these reports don’t exactly scream guaranteed sale, the fact that they are being had at all speaks volumes. At a time when NBA franchises are being overvalued with each new deal, a New York based team would stand to make a lot of money in the open market if a potential buyer proves willing to make a serious offer.
According to Adrian Wojnarowski of Yahoo Sports, what Nets Daily has reported about the process has been taking place for months now. This compliments their initial reports as it offers more background on Prokhorov’s interest in potential suitors.
Part of Prokhorov’s willingness to listen has come out of his company’s curiosity of how much his ownership share of the Nets and the Barclays Center could fetch on the market, league sources said.
After the Sterling Family Trust sold the Clippers for $2 billion to Steve Ballmer, Prokhorov and his associates believe the combination of the Nets and Barclays Center major market location could net in the neighborhood of the Clippers sale, sources said. Less than five years ago, Prokhorov bought the Nets and a percentage of Barclays Center for $223 million.
This isn’t necessarily a distraction for the Nets, but it will likely be a major talking point for the next few weeks for the team until the situation is either resolved, or dropped entirely.
Other News Around The League:
The Indiana Pacers are likely going to miss the playoffs this season, but that hasn’t stopped Paul George from being optimistic. The star who was injured playing in a scrimmage with Team USA this past summer believes that he’ll be healthy enough to play in the post-season. As of now the All Star forward is expected to miss the entire 2014-15 season after suffering a gruesome leg injury. Indiana is going to have a hard time adjusting to the loss of him on their roster, and while being hopeful is one thing even their veteran guys like David West are being realistic about the challenges they face moving forward. Still hearing that George is determined to get back as soon as he’s able is definitely a good sign for his morale. Per the Pacers official website: “It’s very possible that I can play (this season). I’ve talked to all the guys and said, ‘Man, you guys have to get in the playoffs. That’s the best chance I’ve got of coming back and playing this year.’ I’ve already got it in mind that I could miss this whole year. I’m come to peace with that, but I’d love to be able to come back and play again.”
Utah Jazz player Gordon Hayward plans on playing with a newfound edge this season. After signing a max-level contract over the off-season that was one of the biggest free agent deals of the past summer, he returns to the team in the best shape of his playing career yet. Between his improved conditioning and increased expectations, Hayward believes that he is one of the elite players in the NBA and is determined to prove that this year. According to Jody Genessy of Deseret News:
The Butler Bully hopes to maintain his current weight of 225 — players naturally lose weight in two-a-days — during the upcoming season. That weight gives him a good mix of his maintained quickness and increased power, which he’ll need on a nightly basis while playing one of the most athletic positions in basketball.
“That’s the thing you’ve got to balance. This league is about speed more than weight. It’s not football,” Hayward said. “I wanted to make sure I was just as fast during the offseason (while gaining muscle). I made sure I was.”
The interview also revealed the small forward is confident in his ability to compete with the NBA’s top stars on a nightly basis. While Hayward will have to prove that with his play this season, his confidence and willingness to expand his role as a leader provides a youthful Utah team with a talented player they can focus around moving forward.
The only pressure he said he has is to succeed and grow with his team.
“I feel like one of the elite players in the NBA,” Hayward said. “I have the confidence in myself that I should be one of those players.”
That includes, he admitted, a goal of becoming an All-Star.
“I think the way to become an All-Star in this league,” he said, “is help your team do great things.”
Esau Howard is a regular contributor to Sheridan Hoops. You can follow him on Twitter.
There is now more verification that the original report from NetsDaily.com is correct.
That is, Guggenheim Group would only to buy “piece” of Nets/Barclays Center. Prokhorov would still be controlling owner of Nets and Ratner still controlling owner of Barclays. Its possible to own less than 50% and still control team.
USAToday confirmed story, written last night by Jeff Zillgitt. Also by Mitch Abramson of NY Daily News:
” A source close to Nets owner Mikhail Prokhorov screamed “Nyet!” on whether the Russian billionaire would surrender majority control of the team in Brooklyn. “He’s not a seller,” the source familiar with Prokhorov’s thinking told the Daily News on Friday. “He wants the Nets and he loves the Nets and he wants to be controlling owner. This is something that he really enjoys.””
Also, apparently talks have been more serious that Guggenheim Group is admitting.
Walter’s non-denial denial was very weak, when he said he hadn’t seen the financials. However, the Financial person – Guggenheim President Todd Boehly must have seen the “books” when meeting in Moscow.