SBJ: Prokhorov Could Wind Up Paying $700 Million for Nets

via media.landtoday.net

Buried in a story on team values, a Sports Business Journal chart suggests that by some estimates the price tag for Mikhail Prokhorov's Nets purchase "could be worth up to $700M".  SBJ didn't break down the number, but the $700 million figure appears to be much higher than any previous estimate.

As reported, Prokhorov's Onexim Group has agreed to put down $200 million in cash; assume about $180 million in franchise debt from Forest City Enterprises, Bruce Ratner's parent company; eat $60 million in costs--including losses--sustained while the team remains in New Jersey; and purchase up to $106 million in junk bonds needed to finance Barclays Center infrastructure, for a total of around $550 million.  In return, Onexim receives 80% of the team, 45% of the arena and an option to purchase up to 20% of the overall Atlantic Yards project in downtown Brooklyn. 

Separately, the journal reports the vote to transfer ownership from Ratner to Prokhorov "will likely occur" when NBA owners gather in New York April 15-16 for their regularly scheduled board of governors meeting. However, it remains uncertain whether all details of the condemnation for the arena will be settled by then with some Nets insiders suggesting it could take until May to work them all out.

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