Darren Rovell of CNBC reports the Nets lost $77.2 million in 2008-09, the year Mikhail Prokhorov decided to buy the team. It's unlikely any NBA team ever lost more. Rovell uses the financials to take a deeper look at the NBA's overall economic picture in light of reports NBA teams are inflating losses to justify the lockout.
The lossses are part of the Nets' financial report for the last two seasons under Bruce Ratner's ownership. Rovell obtained the report and offers a link to it. Rovell reports on two areas the players union suggests reflect phony bookkeeping and offers an explanation of how, while somewhat controversial, they adhere to what are known in business as "Generally Accepted Accounting Practices".
"If you go through the report, audited by PWC, and you understand how the NBA reported what was in this document to the Players Association, Rovell writes, "you will understand that it's not out of the realm of possibility that the league's owners were losing north of $300 million for years".
Meanwhile, Norman Oder, critic and chronicler of Atlantic Yards, reports the financials also show Bruce Ratner's Forest City Ratner has already been awarded $35 million in "development fees" for the arena and that Prokhorov could gain control of the arena if a loan he made to Ratner isn't paid.
- Exclusive: Recent New Jersey Nets Books Reveal Huge Losses - Darren Rovell - CNBC
- A Peek at NJ Nets' Bottom Line (Video) - Darren Rovell - CNBC
- Atlantic Yards Report: Nets financials point to 11% loan from Prokhorov, 5% (minimum) development fee to Forest City - Norman Oder - Atlantic Yards Report
Books show Nets with $44 million loss in 2008-09 season - Kurt Helin - NBC Sports
- Report: Nets books show major losses - Royce Young - CBS Sports
NBA Lockout: Rising Team Values Show That Owners Are Hiding The Gold - Tom Ziller - SB Nation
Questioning NBA's financials doesn't solve biggest issue - Steve Aschburner - NBA.com