Nets Owner Mikhail Prokhorov has retained Evercore Partners to "sell the franchise he acquired majority ownership of" in May '10, according to sources cited by Youngmisuk & Stein of ESPN N.Y. A league source said that Evercore "will gather bids potentially as soon as the end of the month." Nets officials denied the initial Bloomberg News report yesterday afternoon, "insisting that ownership is merely gauging interest." But sources said that Prokhorov "hasn't been thrilled with the team's financial losses or its performance on the court." Youngmisuk & Stein notes the Nets lost $144M in "basketball-related business" in '13-14 -- $131M "more than the next highest team." Prokhorov's stake includes 80% of the team and 45% "of Barclays Center" (ESPNNY.com, 1/13). BLOOMBERG NEWS' Scott Soshnick in the original report cited sources as saying that "only the team is for sale." Because of their "home in the No. 1 U.S. media market, and the infrequency with which marquee franchises become available, the Nets might fetch more" than the record $2B Steve Ballmer paid for the Clippers last year (BLOOMBERG NEWS, 1/14). In N.Y., Bondy & Abramson cite a Nets source as saying Prokhorov’s partnership with Evercore “has been in play for months.” Forest City Ratner Companies Exec Chair Bruce Ratner "similarly tapped Evercore to advise him on the sale of his minority share of the Nets, but has sold nothing since that news broke in April." The feeling in the NBA is that Prokhorov "will ultimately unload his full 80% share of the Nets, despite the denials." But there "won’t be much movement" until the sale of the Hawks. Meanwhile, Prokhorov's "nonpresence with the Nets has become almost comical, to the point where most of the players have never met the 49-year-old" (N.Y. DAILY NEWS, 1/14).
LOOKING FOR A WAY OUT: In N.Y., Kosman & Bontemps note Prokhorov, with his "net worth tamped down by the crumbling Russian ruble, has long been rumored to be seeking to take some investment cash off the table" (N.Y. POST, 1/14). Bleacher Report's Howard Beck reported the poor Russian economy is a "driving factor" in Prokhorov looking to sell the team (TWITTER.com, 1/13). The WALL STREET JOURNAL's Alex Raskin notes as recently as November, amid reports that he had "met with potential minority investors, Prokhorov said he would 'not give up control of the team.'" His position now, though, "appears to have changed." Retaining ownership of the Nets "could be a sensible way to insulate himself from the struggling Russian economy," though the Nets did lose $144M last year "while paying out an NBA record" $197M in payroll and luxury taxes. The Nets’ luxury-tax bill "will be significantly cheaper this season, but they still have" a league-high $90M payroll (WALL STREET JOURNAL, 1/14).
ALL BARK, LITTLE BITE: SNY's Sal Licata said Prokhorov's legacy will be that he was "not as good an owner as we all thought" he would be when he bought the team five years ago. Licata: "He was exciting at the time. We thought, ‘Wow, he’s going to give the Knicks a run for their money.’ ... Prokhorov was a failure. He failed and he bolted and you don't want that guy here." While the next owner "won't be as exciting," the team "in the long run may be in better shape.” The N.Y. Daily News' Andy Martino said, "It’s just not working. ... I thought it would take off and I was wrong. It didn't, so whatever is going on there with a team that’s just stuck in the same Jersey-style mediocrity that they brought over from across the river, something needs to change.” The N.Y. Daily News' Pat Leonard: "The Nets’ advantage has been the fact that Prokhorov is willing to spend against the luxury tax and bring in all of these players, it doesn't matter what it costs. That’s been why the Nets, when they rebranded in Brooklyn, were going to win. Without that advantage, they are just another team" ("Daily News Live," SNY, 1/13). SNY's Chris Carlin said, "I guess the big Russian just got a little bored. ... He made a lot of big promises when he got here and now he is jumping ship. That is unfortunate, but not totally unexpected” (“Loud Mouths,” SNY, 1/13). ESPN's Tony Kornheiser said to "PTI" co-host Michael Wilbon, “You said this guy was going to revolutionize NBA ownership. You said everyone in the NBA would want to play for him and go on his private plane with him and his hot babes. He promised a championship in five years. This is year five -- his Nets are 16-22.” Wilbon said, “He didn't deliver on those promises but … I'll take a flight on his plane and go wherever he wants to” (“PTI,” ESPN, 1/13).
