PDA

View Full Version : Russian billionaire confirms $700M bid for Nets



redsfandan
09-22-2009, 05:56 PM
Russian billionaire confirms $700M bid for Nets

Prokhorov confirms interest in Nets
Tuesday, September 22, 2009
ESPN.com news services
http://sports.espn.go.com/nba/news/story?id=4494932

MOSCOW -- Russia's richest man, Mikhail Prokhorov, has made a takeover bid for the New Jersey Nets, the tycoon confirmed on his blog on Tuesday.

Prokhorov, a former nickel mining baron, boasts that if his move is successful, it would be the first time a National Basketball Association club would come under foreign control.

Prokhorov's proposals, sent to existing Nets shareholders over the weekend, would see his Onexim group provide a loan to build a substantial part of a new arena, according to a post on his Web site.

Onexim would also receive a controlling stake of the NBA team for a "symbolic" price, the post said. Sources close to the billionaire have previously estimated the overall value of any deal at $700 million.

"For our Onexim group the realization of this very lucrative business project, whose participation was made possible by the world crisis [never in history have foreigners owned an NBA club], is another interesting sports development," Prokhorov wrote.

Nets and NBA officials declined to comment, but the team said last week that they have received interest from potential investors in the team.

NBA rules do not bar overseas ownership, and transfer of ownership requires background checks on a new owner as well as approval by 75 percent of the league's 30 owners.

Russian oligarchs spent money on yachts, mansions and sports clubs as their investments rose with soaring commodity prices in recent years. In the highest-profile deal, Roman Abramovich bought London soccer club Chelsea in 2003.

While many of his Russian peers sought state bailouts, the 44-year-old Prokhorov, a former banker and mining executive, is flush with money after cashing out of assets in 2008 before the global crisis caused commodity prices to crash.

A former chief executive of the world's largest nickel firm Norilsk Nickel, Prokhorov has an estimated fortune of $9.5 billion, according to the latest Russian edition of Forbes magazine.

Developer Bruce Ratner owns the Nets, which Forbes magazine in December ranked as the 26th most valuable of the 30 NBA teams, with an estimated value of $295 million.

The club plans to move from New Jersey to a new arena in Brooklyn.

In addition, Ratner's company, Forest City Ratner, proposes constructing 16 office and apartment buildings, as well as upgrading subway, utility and other infrastructures as part of a larger project.

Legal disputes, financing problems and challenges from local community groups have dogged the project for years. In June, Ratner dropped architect Frank Gehry to cut costs, further irking critics as Gehry's design was a key factor in winning public support for the project in the first place.

Information from Reuters was used in this report.

Brutus
09-22-2009, 06:55 PM
Perhaps I'm merely paranoid of the globalist agenda lurking in America, but I don't particularly care for this idea much. I had a hard enough time swallowing the Nintendo acquisition of the Mariners. This would be even tougher to swallow.

Not to mention, if the rich are going to get richer, at least let it be American wealth.

Revering4Blue
09-22-2009, 06:58 PM
The club plans to move from New Jersey to a new arena in Brooklyn.

Maybe it is just me, but I don't understand the need to move the franchise out of New Jersey. Why not just move to the Izod Arena in Newark, where the Devils play.

And, if you must move out of N.J , why not build an Arena in Long Island. The Islanders are threatening to leave without a new arena, and there is much more disposable income among fans in Long Island than in Brooklyn.

sonny
09-22-2009, 07:41 PM
wait...the NEW JERSEY Nets?

improbus
09-22-2009, 08:07 PM
Maybe it is just me, but I don't understand the need to move the franchise out of New Jersey. Why not just move to the Izod Arena in Newark, where the Devils play.

And, if you must move out of N.J , why not build an Arena in Long Island. The Islanders are threatening to leave without a new arena, and there is much more disposable income among fans in Long Island than in Brooklyn.

Ummm...they do play in the Izod Arena. I think that the Brooklyn move is smart. New Jersey has always been a second class NBA market and New York can easily handle a second team.

Boston Red
09-22-2009, 08:23 PM
I believe it's the Prudential Center that is in Newark that the Devils play in. The Izod Center at the Meadowlands is a dump. Good that they're getting out of there.

Prokhorov and a partner invested a huge sum in one of my clients, so I it's funny to me to see his name come up. That investment turned out to be a disaster, but not because of anything he did or didn't do.

improbus
09-22-2009, 08:29 PM
Prokhorov and a partner invested a huge sum in one of my clients, so I it's funny to me to see his name come up. That investment turned out to be a disaster, but not because of anything he did or didn't do.

The real danger is knowing just how much of this guys money is real. So many of the post-Communist Russian magnates were taken down by the economic downturn (just ask Chelsea).

Boston Red
09-22-2009, 08:30 PM
Oh, he also was once arrested for flying Russian prostitutes into the French Riviera for parties he was throwing. I think the charges were dropped. Definitely known as a playboy who loves basketball.

Revering4Blue
09-22-2009, 08:32 PM
I believe it's the Prudential Center that is in Newark that the Devils play in.

That is what I meant.:redface:

KronoRed
09-22-2009, 09:23 PM
wait...the NEW JERSEY Nets?

New York Giants/Jets in New Jersey and New Jersey Nets in Brooklyn

Makes perfect sense :D

15fan
09-23-2009, 09:10 AM
The New Jersey Nyets.

cumberlandreds
09-23-2009, 09:24 AM
The NBA has always wanted to go global. Now is their opportunity for a team in Siberia.

Chip R
09-23-2009, 10:54 AM
The New Jersey Nyets.


Very good. :thumbup:

Tom Servo
09-23-2009, 11:22 AM
Stopped caring about the Nets when they decided they were leaving NJ for Brooklyn. So I'm a Bobcats fan now.


It's a downgrade.

edabbs44
09-23-2009, 11:38 AM
Maybe it is just me, but I don't understand the need to move the franchise out of New Jersey. Why not just move to the Izod Arena in Newark, where the Devils play.

And, if you must move out of N.J , why not build an Arena in Long Island. The Islanders are threatening to leave without a new arena, and there is much more disposable income among fans in Long Island than in Brooklyn.

Easier for the Manhattanites to get to Brooklyn on a Wednesday night than to LI.

Razor Shines
09-23-2009, 11:39 AM
The New Jersey Nyets.

That's good, and I don't mean just for a Wake fan, that's a quality line for anybody.

15fan
09-23-2009, 12:50 PM
That's good, and I don't mean just for a Wake fan, that's a quality line for anybody.

Thank you. I'll be here all week. Don't forget to tip the wait staff!

TeamSelig
09-23-2009, 02:11 PM
Since NJ draws about 5 people per game, I don't see anything wrong with it.

paintmered
09-24-2009, 07:50 PM
The New Jersey Nyets.

Well played, good sir. Well played. :clap::clap:

Unassisted
09-24-2009, 09:43 PM
Since Russians used to be called "Reds" by folks here in the West, perhaps a crusty Russian billionaire with an insatiable thirst for winning might be interested in a baseball team whose name harkens back to the salad days of his motherland? :cool:

IslandRed
09-25-2009, 10:35 AM
Since Russians used to be called "Reds" by folks here in the West, perhaps a crusty Russian billionaire with an insatiable thirst for winning might be interested in a baseball team whose name harkens back to the salad days of his motherland? :cool:

Just don't tell Les Nessman.

Revering4Blue
04-12-2010, 06:25 PM
Prokhorov’s Dealings with Zimbabwe Have Him in Hot Water

http://sports.yahoo.com/nba/news?slug=tsn-prokhorovsdealingswi

Kingspoint
04-12-2010, 06:37 PM
Great.

First we have the Nets ties to the Italian Mafia.

Now they'll have ties to the Russian Mafia.

It makes perfect sense.

David Stern has no scruples.

Another big payday into a Swiss Bank Account.

Joseph
04-12-2010, 10:52 PM
Absolutely right Kingspoint. Stern is all about dollars and cents. I worshiped Michael Jordan growing up, but I'm not sure he needs to be an NBA owner. However he is a billionaire so he can afford it and Stern is all too happy to cash the check.

Chip R
04-12-2010, 10:58 PM
Is this guy gonna move the team to Brighton Beach?

Boston Red
04-12-2010, 11:08 PM
Russian mafia? Where are you reading that?

Yachtzee
04-12-2010, 11:29 PM
Sounds more to me like ploy by a NJ Congressman to prevent the Nets from moving to Brooklyn. There are plenty of US companies and Multinational corporations with major US interests that do business in Zimbabwe (Coca Cola? Chevron? BP? Rio Tinto?). It's my understanding that the sanctions on doing business in Zimbabwe only prohibit businesses from working closely with businesses or government agencies closely tied to Robert Mugabe and his henchmen. Doing business in Zimbabwe is a lot more complicated than the Congressman would have one believe.

Kingspoint
04-13-2010, 04:36 PM
Russian mafia? Where are you reading that?

I'm not reading it anywhere. It's just pretty hard to be a Billionaire in Russia without some Russian Mafia ties.

Boston Red
04-13-2010, 04:46 PM
So David Stern has no scruples because you assume (with no evidence) that this guy has mafia ties?

He hooked up with Vladimir Potanin pretty early on, and Potanin is supposed to have close ties with the Kremlin. You decide whether having mafia ties or Kremlin ties is worse.