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Tsai to take full control of Brooklyn Nets
Posted on Wednesday, 14 August 2019 11:38
Joseph Tsai is on the verge of acquiring the remaining 51.0 per cent he does not already own in Brooklyn Nets from Russian billionaire Mikhail Prokhorov for USD 1.35 billion, according to the New York Post.
Sources with knowledge of the matter told the newspaper an announcement regarding Tsai’s decision to exercise his right for the majority stake some two seasons early is expected this week.
The Post noted the co-founder of Alibaba bought his initial 49.0 per cent stake from Prokhorov’s Onexim Sports and Entertainment Holding for a reported USD 1.00 billion in the first half of 2018.
As part of the original agreement, Tsai was given the right to pick up the 51.0 per cent balance by the 2021-20 basketball season for an extra USD 1.35 billion – giving the full acquisition an overall valuation of USD 2.35 billion.
The Post noted Brooklyn Nets is expected to book a 10.0 per cent to 15.0 per cent increase in revenue for the upcoming season after inking contracts for Kyrie Irving and Kevin Durant.
It added the two National Basketball Association All-Star free agents are expected to boost attendance, which in turn would add to profits.
While the Brooklyn Nets declined to comment when contacted by the newspaper, two league sources told NetsDaily the Post article is accurate.
Zephyr, the M&A database published by Bureau van Dijk, shows the deal for the remaining 51.0 per cent would be one of the largest globally targeting a sports team and club on record.
At USD 6.50 billion, the biggest currently is the completed 2017 acquisition of Formula 1’s parent, Delta Topco, by Liberty Media.
With regards to basketball clubs, Steve Ballmer bought the Los Angeles Clippers in 2014 for USD 2.00 billion, while Tilman Fertitta acquired the Houston Rockets in 2017 for USD 1.65 billion.
© Zephus Ltd