Slam dunk for Russian billionaire
A big international business deal hit the courts of New Jersey on Thursday with a Russian billionaire becoming the principal owner of the New Jersey Nets.
With an investment deal of $200 million plus an unspecified amount committed for the building of a new arena, Mikhail Prokhorov can now call himself the first overseas owner of an NBA team, according to the New York Times.
Forbes sport reporter Tom Van Riper said in an article Wednesday that the current owner of the Nets, Bruce Ratner, has lost about $70 million in the past two years, while Charles V. Bagli’s article in the New York Times said he lost $380 million in pre-tax net losses over the last five years.
Forbes rated Mikhail Prokhorov number 40 in the 2009 rankings of the World’s Billionaires back in March.
Ratner told the Times that Prokhorov’s investment in the team will provide the financial stability that they needed.
According to the Times, Prokhorov will have primary responsibility for the basketball team and Ratner will have primary responsibility for the $800 million arena and $4.9 billion development surrounding the arena.
Forbes pointed out the huge significance of this deal with a quote from a Dallas-based sports valuation specialist whom said he had never seen a sports deal quite like this, especially in this economy.
Many are hoping this deal will stimulate more cash flow in the United States, with more Russians showing an interest in American basketball.
Ok Russia, it’s game time.
