Mikhail Prokhorov looking to sell Brooklyn Nets, according to report

Prokhorov has reportedly hired an investment banking firm to help sell the Nets.

Jan 13, 2015, 5:57 PM UTC

Anthony Gruppuso-USA TODAY Sports

Brooklyn Nets owner Mikhail Prokhorov is looking to sell the team, according to Bloomberg's Scott Soshnick.

Prokhorov has reportedly hired Evercore Partners - an independent investment banking advisory firm - to help with the sale.

Prokhorov purchased an 80 percent stake in the Nets for about $220 million in 2010, and he also owns 45 percent of the Barclays Center, the team’s new arena that opened in 2012. As of right now, only the team is for sale.

A Prokhorov spokesperson released the following statement on a prospective sale, per NetsDaily: “As we have said for many months, ownership is always open to listening to offers. That’s just good business. There is nothing imminent in terms of a sale in any stake in the team.”

Rumors began swirling over the summer that Prokhorov was thinking about selling his majority stake in the Nets after the Los Angeles Clippers sold for $2 billion. It's unclear what the Nets are worth, but valuations expert Peter Schwarz told Soshnick that Prokhorov's combined stake in the team and arena is also worth about $2 billion.

Prokhorov held discussions in the summer with Guggenheim Sports and Entertainment, the owner of the Los Angeles Dodgers, about a “combination of assets.” But that deal fell apart because the Nets owners were reportedly unwilling to take on more debt.

Prokhorov said in November he was still getting numerous proposals to buy the Nets, but he didn’t have interest in selling at that time. Limited partner Bruce Ratner - who owns the remaining 20 percent of the team and the majority stake in the arena - tried to sell off his minority share of the Nets with the help of Evercore, but no agreement was reached.

The Nets have made waves as big spenders under Prokhorov’s watch the past few years. Brooklyn’s roster cost nearly $200 million in salary and luxury tax last season, and although the roster isn’t quite as expensive this year, they still have the highest payroll in the NBA at just under $91 million. Despite these massive roster expenses, the Nets are just 16-22 this season and only made it to the second-round of the playoffs last year.

Brooklyn’s basketball operations department lost $144 million last year, thanks in large part to the high payroll. Prokhorov brushed off those losses when he spoke in November because of how much the team has increased in value since his purchase, but with the Russian ruble weakening against the dollar and a possible recession on the way, he may be having a change of heart.

With the Nets reportedly up for sale, they become the second NBA team on the market, along with the Atlanta Hawks. Hawks ownership agreed to sell 100 percent of the franchise in early January.

★★★