Nets set for Russian owner and move to Brooklyn

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Nets set for Russian owner and move to Brooklyn



Wed Sep 23, 7:16 PM

CHICAGO (Reuters) - The New Jersey Nets took big steps toward a relocation to Brooklyn and foreign ownership when they reached a deal worth more than $200 million with Russia's richest man, Mikhail Prokhorov, on Wednesday.


A letter of intent has been signed which would give the Russian control of the NBA franchise as well as fund the development of the Barclays Center, the proposed new home for the team in the New York borough.

"I have a long-standing passion for basketball and pursuing interests that forward the development of the sport in Russia," Prokhorov said in a statement. "I look forward to becoming a member of the NBA."

The deal, due to be completed by the first quarter of next year, would make Prokhorov the league's first owner outside North America, if he takes over from current owners Bruce Ratner and Forest City Enterprises.

It would also pave the way for the end of the Nets presence in New Jersey after over 30 years in the state, creating a second team in New York -- home to the Knicks.

NBA rules require background checks on a new owner as well as approval by 75 percent of the 30 owners but the plan received approving words from NBA Commissioner David Stern.

"We are looking forward to the Nets' move to a state-of-the-art facility in Brooklyn, with its rich sporting heritage.

"Interest in basketball and the NBA is growing rapidly on a global basis and we are especially encouraged by Mr Prokhorov's commitment to the Nets and the opportunity it presents to continue the growth of basketball in Russia," he said in the joint statement.

The Nets franchise has been based in New York in the past. The team played as the New York Nets in the ABA league at different venues from 1968.

A year after the ABA-NBA merger, the franchise moved to New Jersey and took the current name.

Now the team, who have won four divisional titles in the NBA all between 2002 and 2006, are set for a transformation into a Brooklyn team owned by a Russian oligarch.

Towering over colleagues at 6 feet, 9 inches tall, Prokhorov, the former chief of the world's largest nickel firm, Norilsk Nickel, used to play basketball.

The deal would be the most high-profile Russian sporting acquisition since Roman Abramovich bought London-based Premier League soccer club Chelsea in 2003.

The 44-year-old Prokhorov is worth $9.5 billion according to the May Russian edition of Forbes.

Under the agreement, Onexim, Prokhorov's investment group, will invest $200 million and make certain contingent funding commitments to buy 45 percent of the arena project and 80 percent of the National Basketball Association team, the parties said.

Forbes in December ranked the Nets as the 26th most valuable NBA team with an estimated value of $295 million.

(Reporting by Ben Klayman in Chicago, writing by Simon Evans in Miami; Editing by Kevin Fylan)