Alibaba co-founder Joseph Tsai set to buy Brooklyn's Barclays Center 'for $700 million' after already agreeing to purchase the NBA's Nets from Russia's Mikhail Prokhorov for a record $2.35 billion
- After agreeing to buy the NBA's Nets for $2.35 billion, Alibaba co-founder Joseph Tsai is expected to buy the team's arena, Barclays Center, for $700 million
- Tsai previously bought 49 percent of the Nets from Russian businessman Mikhail Prokhorov last year for $1 billion. In total, the team and arena cost $3 billion
- The $2.35 billion price for the Nets is a record for a sports franchise, topping the $2.2 billion sales of the NFL's Carolina Panthers and the NBA's Houston Rockets
- Prokhorov bought the New Jersey Nets for less than $400 million in 2010
- The team moved to Brooklyn in 2012, and has since struggled to turn a profit
- The Nets recently signed NBA All-Stars Kevin Durant and Kyrie Irving to a pair of four-year deals totaling $305 million. Ticket sales have spiked since the signings
- Brett Yormark, the CEO of the Nets' parent company, is expected to resign Friday
Joseph Tsai (pictured right), the Nets minority owner and co-founder of e-commerce giant Alibaba, has agreed to purchase the remaining 51 percent of the NBA franchise from majority owner Mikhail Prokhorov for $1.35 billion and the team's arena, Barclays Center, for another $700 million
Joseph Tsai, the co-founder of Chinese e-commerce giant Alibaba and soon-to-be-controlling owner of the Brooklyn Nets, is expected to sign a deal to purchase the NBA franchise's arena, Barclays Center, from Russian billionaire Mikhail Prokhorov for more than $700 million.
The Nets officially announced the sale on Friday morning, but did not disclose the price. The New York Post was the first to report the agreement and the sales price.
Tsai, who bought 49 percent of the Nets last year for $1 billion, also has an impending deal to purchase the other 51 percent from Prokhorov for $1.35 billion, a source confirmed. That brings the total price of the team to a $2.35 billion - a record for a professional sports franchise, topping last year's $2.2 billion sale of the NFL's Carolina Panthers and the $2.2 billion purchase of the NBA's Houston Rockets in 2017.
Prokhorov purchased the Nets for less than $400 million in 2010, when the team still played in New Jersey.
All together, the sale of the team and arena will be around $3 billion, according to multiple reports.
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Joseph Tsai, the co-founder of Chinese e-commerce giant Alibaba and soon-to-be-controlling owner of the Brooklyn Nets, is expected to sign a deal to purchase the NBA franchise's arena, Barclays Center, from Russian billionaire Mikhail Prokhorov for more than $700 million
In 2009, Russian billionaire Mikhail Prokhorov bought the Nets for less than $400 million
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Tsai, a basketball fanatic who also owns the WNBA's New York Liberty, is worth close to $10 billion, according to Forbes.
JOSEPH TSAI'S STATEMENT ON BUYING THE NETS
'I've had the opportunity to witness up close the Brooklyn Nets rebuild that Mikhail [Prokhorov] 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,' said Tsai in an official statement. 'I will be the beneficiary of Mikhail's vision, which put the Nets in a great position to compete, and for which I am incredibly grateful'
The 55-year-old Taiwanese-Canadian dual citizen also owns a professional lacrosse franchise in San Diego and launched the Premiere Lacrosse League in February.
When he bought his minority stake last year, Tsai was given an option to add more shares before the 2021-22 season, so his outright purchase of Nets had been expected.
For that matter, so had his acquisition of Barclays Center since the NBA prefers its owners to control their home arenas.
The sale comes at a good time for the Nets, who have struggled to turn a profit since before they moved across the Hudson River in 2012.
Despite making the playoffs last season for the first time since 2015, the franchise still finished last in the NBA in home attendance.
However, that is already changing after the team added All-Stars Kyrie Irving and Kevin Durant as free agents last month on a pair of four-year deals totaling $305 million.
Even though Durant is expected to miss the upcoming season after tearing his Achilles while playing for the Golden State Warriors in June's NBA Finals, the Nets have still set a number of ticket marks since his signing.
Kyrie Irving, left, and Kevin Durant of the Brooklyn Nets will have a new boss in Alibaba Group co-founder Joseph Tsai, who is buying complete control of the team from Mikhail Prokhorov
MIKHAIL PROKHOROV'S STATEMENT ON SELLING THE NETS
Mikhail Prokhorov is no longer the owner of the NBA's Brooklyn Nets
'It has been an honor and a joy to open Barclays Center, bring the Nets to Brooklyn, and watch them grow strong roots in the community while cultivating global appeal,' said Prokhorov in an official statement. 'The team is in a better place today than ever before and I know that Joe will build on that success, while continuing to deliver the guest experience at Barclays Center that our fans, employees, and colleagues in the industry enjoy. Without [outgoing CEO Brett Yormark's] innovative foresight and leadership, we would not be where we are today with the Nets and Barclays Center. Brett had always made it clear to me that when the arena and team sold, he would move on and begin his next journey. Thank you to Brett, who has been a true partner and friend over the past 15 years.'
Brett Yormark, BSE Global's CEO, is expected to resign on Friday, according to Bloomberg . Yormark had been with the Nets since leaving NASCAR in 2005
June 30, immediately following the announcement of the agreements, the Nets had their single-largest day of ticket sales in franchise history, according to a spokesperson.
Boxing has become a staple of Barclays Center, which is being sold to Joseph Tsai for $700 million. (Pictured: Chris Arreola punches Adam Kownacki during their heavyweight fight on August 3)
Sales staff received nearly 1,000 inbound calls on that day alone, and within a week, the Nets had already exceeded its ticket revenue for all of the 2018-19 season.
Tsai, who is of Chinese descent, is a member of NBA China and could also help the league make further inroads within the country. Sources told the Post that Tsai speaks very positively about China and its controversial government.
Other moves are expected within the Nets' parent company, Brooklyn Sports & Entertainment
Brett Yormark, BSE Global's CEO, is expected to resign on Friday, according to Bloomberg. Yormark had been with the Nets since leaving NASCAR in 2005.
In addition to the Nets, Barclays Center is one of two home arenas for the NHL's Islanders, along with the Nassau Coliseum on Long Island. However, the Islanders' days in Brooklyn are rumored to be numbered as team hopes to build a new arena abutting the Belmont Park racetrack in Elmont, New York, just outside of Queens.
The Islanders will once again split home games between Nassau Coliseum and Barclays Center in 2019-2020.
Barclays Center's other revenue streams include boxing, mixed martial arts, concerts, as well as college basketball and hockey tournaments.
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