Looks like Prokhorov’s five-year promise might end with a fully committed marriage to the Nets.
While Prokhorov said on the record he was only interested in adding investors if he maintained a majority ownership, rumors swirled that Prokhorov wanted out. But according to the New York Post, Prokhorov is nearing a deal with minority shareholder Bruce Ratner to gain a full ownership stake of the Nets and Barclays Center:
Under the deal being discussed, he would kick in little cash beyond forgiving the roughly $31 million Forest City owes him to cover team losses, according to two sources familiar with the situation.
Onexim Group, Prokhorov’s investment vehicle, earlier extended until Sept. 8 a deadline for when Forest City needs to pony up about $6 million to cover its share of the Nets’ losses for the 2015-16 season. That’s on top of the $25 million it owes for past seasons.
Prokhorov already owns 80 percent of the Nets franchise and 45 percent of Barclays Center, from his deal back in 2010.
When Prokhorov looked for minority shareholders, one report alleged that he valued the franchise at $1.5 billion. But it looks like he’ll get a much better deal than that:
The team is valued at an estimated $700 million, according to the analyst who follows Forest City. After subtracting $210 million of debt, the franchise has an equity value of $490 million.
Forest City’s 20 percent would be worth around $100 million, and it shares 38 percent of its Barclays and Nets stake with partners. So, minus its $31 million in team losses, the firm and its partners would realize a gain of less than $70 million.
New York Post — Prokhorov nears deal to buy all of Barclays Center, Nets
