Alibaba co-founder Joseph Tsai is buying full ownership control of the Brooklyn Nets and Barclays Center for a record amount, according to a Forbes report analyzing the transaction.
The deal became official on Friday when the team announced the sale via a press release; the New York Post first broke the news of a likely sale in March and published another exclusive report on Aug. 13.
Tsai had previously bought 49% of the Nets in 2018 for $1 billion and now he will purchase the remaining 51% from Russian billionaire Mikhail Prokhorov for $1.35 billion. The combined $2.35 billion price tag sets a record for a sport franchise, beating hedge fund owner David Tepper’s the $2.2 billion purchase of the Carolina Panthers in 2018 and businessman Tilman Fertitta’s $2.2 billion acquisition of the Houston Rockets two years ago.
BIG AIR: X Games Runs Data Tracking Beta Test at Minneapolis 2019
Forbes reports that Tsai will end up paying close to $3.3 billion when accounting for the cost of stadium rights and the purchase of debt.
The sale must be approved by the NBA, a formality that is expected to be completed by the end of September. Prokhorov had purchased a controlling interest of the Nets in 2009, three years before the team moved to Brooklyn from New Jersey.
“I’ve had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail started a few years ago. He hired a front office and coaching staff focused on player development, he supported the organization with all his resources, and he refused to tank,” Tsai said in a press release announcing the transaction.
NEW SCOUTING: NBA Wants to Find the Next LeBron James by Turning HomeCourts into a Global Stage
As part of the agreement, Brett Yormark will step down from his longtime role as chief executive officer of BSE Global, which operates both the Nets and Barclays Center. Tsai also owns the WNBA’s New York Liberty and is a board member of NBA China. According to the New York Post, the league is reportedly thrilled with Tsai’s full ownership purchase given the NBA’s desire to continue expanding in China, where it counts 300 million fans and sees more room for growth. “The league would be ecstatic,” a source told The Post earlier this year.
Born in Taiwan, the 55-year-old Tsai is the vice chairman of Chinese e-commerce giant Alibaba. He’s the company’s second-largest shareholder after fellow co-founder Jack Ma. This past March, the NBA expanded its partnership with Alibaba to include NBA content on its platforms for the first time. Alibaba will also serve as the official digital ticketing provider for the 2020 Olympic Games in Tokyo. Tsai’s total-purchase of the Nets comes only a couple months after the franchise signed two of the league’s biggest stars in free agency, Kevin Durant and Kyrie Irving.
Question? Comment? Story idea? Let us know at talkback@sporttechie.com