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September 23, 2009
Prokorov to buy New Jersey "Nyets"?
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Local photog Tracy Collins has updated his photoshopped image of the Hagan sister's Atlantic Yards footprint mural (via, flickr Atlantic Yards Photo Pool).
The buzz is that an an official announcement is coming regarding the takeover of Bruce Ratner's floundering NJ Nets by the Russian billionaire Mikael Prokorov, in exchange for Prokorov's commitment to finance the arena.
NY Daily News, Russian billionaire Mikhail Prokhorov confirms interest in funding Nets' planned arena in Brooklyn
Russian billionaire Mikhail Prokhorov confirmed his interest in funding the Nets' planned Brooklyn arena Tuesday, saying on a blog in Russian that he is negotiating a deal with the team's current ownership group that could lead to him taking over the franchise.
Prokhorov, a 43-year-old tycoon with an estimated net worth of $9.5 billion, said he has "recently received a proposal to participate in a business project of building a new arena in Brooklyn (New York)." He added that he could also secure a "substantial stake in the project" as well as take over control of the team for a "symbolic price."
Owner Bruce Ratner reportedly is trying to get Prokhorov to fund the construction of the Barclays Center with a $700 million bond. The "symbolic price" Prokhorov is referring to is reportedly $1.
Sources close to the deal in New York say that within 48 hours, Prokhorov and Bruce Ratner, the current controlling shareholder of the Nets and the arena project, will announce that Prokhorov’s takeover of the club is contingent on local opposition to the arena failing; and to the banks agreeing to lend Prokhorov the money. He and the banks, Ratner too, don’t have much time. A tax exemption will expire for the project if it fails to commence on December 31. How much money Prohkorov has agreed to put up himself, and how it will be secured for repayment, have not been disclosed yet.
Sports Business News, Russian billionaire Mikhail Prokhorov has claimed he has sent an offer to the shareholders of NBA team the New Jersey Nets to buy a controlling stake
The NBA does not bar overseas owners, but transfer of ownership requires background checks on the new owner and approval by 75 per cent of the league's 30 owners.
The Nets' move to Brooklyn has been dogged by legal disputes, financing problems and challenges from local community groups, and in June current team owner, the developer Bruce Ratner dropped renowned architect Frank Gehry from the project to cut costs.
Atlantic Yards Report, The Prokhorov intrigue: he sounds serious
AYR's Russian expert recommends that readers, "Pay no attention to the robot translation. I think he is serious."
Gringcorp, the Gumby Fresh blogger who has been trying his best to bring us "Arena Financing for Dummies," chimes in:
There's something else going on here. The google robot isn't rendering it perfectly.
But:
"Under the deal the group will attract a similar loan to western banks (I think, if successful, the deal will simply unique!)."
Replace the "to" with "from" and you have an intriguing set-up. My guess is the banks are providing letters of credit rather than loans to the arena.
You also have a financing potentially divorced from the dictates of the bond/market/ratings agencies. No-one's done this in sports for quite a few years.
Associated Press, Russian tycoon says he's made offer to buy Nets
In the blog posting Prokhorov writes that his interest in a deal stems from a desire to improve Russian basketball by getting access to NBA training methods and sending Russian coaches for internships in the league.
Curbed.com, Poorly-Translated Russian Billionaire Saving Atlantic Yards?
So the whole deal is a smokescreen for a red takeover of the NBA? Suddenly this Atlantic Yards thing is getting interesting!
NY Newsday, Russian billionaire might buy, move Nets to Brooklyn
Prokhorov, 44, a former nickel magnate and current chairman of Russia's largest gold producing company, has an estimated net worth of $9.5 billion, according to Forbes. He said on his blog that he was initially approached by the Nets about joining in on the $4-billion Brooklyn development plan, which includes a new arena for the Nets and has been slowed by political and financial hurdles.
The Nets, NBA and Ratner each had no comment last night.
Prokhorov said on his blog that his counteroffer was to extend credit toward the Atlantic Yards project "to build a new arena in Brooklyn" and controlling interest in the team "for a symbolic price." Reuters cited sources that estimated the overall price Prokhorov would pay for the arena project and the franchise to be about $700 million.
DDDB.net, Prokhorov: The Oligarch Cometh to Atlantic and Flatbush?
NBA FanHouse, Russian Tycoon Tells Nets Owners He Wants the Team
I don't think it's unfair to say current Nets majority owner Bruce Ratner is primarily concerned with Barclays getting built at this point so that he can eventually move forward with the rest of the surrounding Atlantic Yards development. Ratner has been slammed by the economic downturn and tough legal challenges to the Atlantic Yards project. Selling off Barclays Center before ground is broke -- and giving up the top tenant in the process -- isn't ideal, and it's certainly got to be a bit embarrassing for a power broker like Ratner.
NJ.com, Nets Notes
The Nets, perhaps measuring the blowback of becoming the first team to sell out to a foreign interest, did not issue any reaction from owner Bruce Ratner. Team president Rod Thorn admitted he is “not in the loop” and merely concedes that “there’s some smoke there,” but some investors regard a sale as imminent.
The Crossover, THE RUSSIAN INVASION!
The NBA front-office (Stern and Jackson) would presumably look past the Prokmaster General’s hooker fetish in light of his bank balance. The bottom line is that more money would be coming into the NBA, and in today’s economic shit-storm, isn’t that all that really counts?
Posted by lumi at September 23, 2009 5:51 AM