I hope prohokov buys these bonds and controls the arena as well as the Nets.
Ratner needs to be punished for what he did to this team!

That’s what I’ve been saýing. If the bonds don’t sell, I bet Proky serves as a backstop.

No, these are the bonds that are non tax-exempt, those destined to finance the infrastructure around the arena, not the arena itself. They were rated below investment grade. These bonds are “like equity”, says the magazine, meaning like stock in the arena. From the way I read it, the bonds are convertible to stock if they default.

Under the original deal, which has been modified more than once, Prokhorov was to get three things: 80% of the Nets, with Ratner and his fellow investors retaining the remaining 20%; 45% of the arena; and an option to buy 20% of the overall Atlantic Yards project. The $200 million he’s investing is a big part of the “down payment” on the arena. He also has to pay 80% of the Nets’ estimated $210 in debt and has agreed to eat up of $60 million in operating costs while the team is in New Jersey.

Quite obviously, he is committed to the project. Although it seems like a great deal for him, his bid was substantially higher than the others.

210 mil in debt? ouch…Yeah but once this team comes to NY then its value will be more then what he invested.

NI – When companies default on debt covenants, their equity is wiped out and the bondholders take receipt of the company. I believe that is the sequence of events that is being contemplated.

And since all of the bonds need to be sold, Proky buying the non tax-exempts (which are likely much harder to market) makes the overall financing that much easier.

Brooklyn – Here we come. It is becoming clear that Proky and his $10B (or $15B or $20B) will make this happen. Kudos to Proky and kudos to Ratner for finding Proky and saving the project.

@Andy – The total of his investment is $470M and for that he gets the club (likely worth over $400M in Brooklyn) and half of a billion dollar arena.

Not bad.

Hey, what’s the hurry. Nobody seems too concerned about the Nets sorry situation. Not Nets management, not the NBA, not the Nets coaching staff, not the Nets players. The only ones who seem concerned, are the last of the die hard Nets fans.

I’m starting to get the feeling that the Nets will not go into the FA market next year, but wait for 2011. If they can’t get LeBron, Wade or Bosh, they will not spend big money on Joe Johnson/Boozer “B” type free agents. They will just wait for 2011 and save their money.

In other words, why build a winner in NJ. Wait until we get to Brooklyn, then start rebuilding. Don’t waste your ammo in Jersey. I bet that’s what happens. Sad but true.

@Mike Says:

Mike you are right about building a winner in NJ.
Can you imagine how ugly a NJ Champioship banner would look in the new Barclay Center.
Where are they going to have the parade? Around the parking lot of the Izod Center.
This is joke, lets get to Brooklyn ASAP.

@Net Income Says:

I thought Prokhorov bought 80% of Ratners shares regarding the team.
If my math is correct that gives him about 40% of actual team leaving Ratner 10% and the rest to the other investors.
Please send the correct math when you really know.
JUST CONFUSED REARDING YOUR MATH.

If everything goes through, of course the Nets would begin to start building their team now(while they play a season or so in Newark). Do you think NY fans will flock to see a team that can barely win 5 games? If they wanted to do that they can go see the team that they already have.

Dziedic, you see to hate NJ a lot. How long have you been a fan of this team, since you hate NJ so much?

I bet Prokhorov knew about this for a while…

@NI:

Will we be getting a retraction from Chris Sheridan for suggesting that it might not be until April before Prokhorov takes over? I had said not to believe these negative anti-Nets ESPN analysts like Sheridan.

What will Putin have to say about all this possible extra money leaving Russia?

I think its great news for Nets fans and is much better news than the 0-18 is bad news. The Sports analysts aren’t reporting that Management will probably be very happy shortly and more eyes than ever are watching developments as a result of the losing streak.

There should still be time for Proky to make player moves before trade deadline, if not ASAP as the coach swap must have cost Ratner -> Proky more than $1 million. Is it true that Kiki’s agent was in Russia at the time of the firing?

@jerry25;
  According to the Daily News, Kiki’s agent was in Moscow. I mentioned this several times on this site but nobody seemed interested. Maybe he lives there. LOL

@NI

I use Firefox and had a virus alert all yesterday. I assumed it had something to do with someone playing around with the Fonts for Netsdaily rather than a true virus.

The new font on Firefox is smaller than before, whereas IE has a larger font. Not sure if you were aware of this.

Apparently, everytime you mess with certain system changes my Spyware software issues an alert because of the past history when there actually was a malicious virus.

Maybe we should be warned ahead of time about system changes so that we can ignore these alerts.

It seems that words like “virus” and “Yi’s true age” or any Link, trigger a “your comment is awaiting moderation”.

Maybe we could see the master list of all the triggers (LOL)?

@jerry25;
  Yeah, I know what you mean. I’m starting to get paranoid. Maybe the KGB are on board, already. LOL

Another total fix job too get this absurd project pushed through no matter how crooked anyone involved may be. Once again shame on Stern and his corrupted league.

at Mike:

“In other words, why build a winner in NJ. Wait until we get to Brooklyn, then start rebuilding. Don’t waste your ammo in Jersey. I bet that’s what happens. Sad but true.”

This was the plan all along – break it down in Jersey, completely screw over the longtime fans of the team (yes, Net Income we do exist) and then plan to start all over and make a real NBA team if they ever get to Brooklyn. Nice league, Stern.

Previously I had read that the Debt figure was $170 million with $60 million going forward ($230 total). Now I am reading $210 million with $60 million going forward. Was this renegotiated for an extra $40 million from Proky? What is the source? Why would Proky spend more without getting something in return?

Then there is the $200 million down payment on the arena of which he will own 45% (or more if necessary). Plus $1 for buying the team.

Is there any source which verifies this agreed upon value totaling $470,000,001 ? The media seems to be confused, with good reason (although they don’t really care about the details – just records and Lebron).

@ NetsDaily – could you please provide a list of all the words, phrases, etc., that cause a comment to go into moderation?

@Mr Dollar Bills Says:

I have been following the NBA game for over 42 years.
Have been rooting for the The Nets and Knicks for the same amount of time.
Yes you are right when you seem say that I hate NJ. The fans and the community never did a very good job supporting this team even its two runs at championships. This is a true city game and not some parking lot named Izod along with many other names in the past. Give me a break and look at reality. Going to twenty games a year has been boring at best at the Izod Center and its many past names. I go because I am a junkie for B-Ball.
Just stop and think, how much money and debt has mounted since the move to N.J. parking lot. Brooklyn will be and identity along with becoming a money maker for the future of the team.
 
GO BROOKLYN NETS! GO BROOKLYN NETS! GO BROOKLYN NETS!

@Mr. Dollar Bills Says:

HYere is a laugh for you. Aside from living in Manhattan, Brooklyn. I also live in Fort Lee, NJ a couple days a week.
Not to far from the IZOD parking lot arena.

That’s great dude, thanks for the info

Will someone send this story to Marc Stein, besides Chris Sheridan about this story.

Earlier today on ESPN radio, Marc Stein repeated the myth that the approval by NBA might not take place until much later in the year. He did one beyond Sheridan by saying that Prokhorov had better be in control by the time of the FA signings!

I think these ESPN analysts have less than a 25% prediction accuracy.