Mike Ozanian of Forbes reports that Mikhail Prokhorov recently decided against enforcing his ownership agreement with Bruce Ratner. The decision permits Ratner to maintain his ownership stake in the Nets despite not funding operating losses as had been previously agreed upon.
Under the agreement, Prokhorov's ONEXIM Sports and Entertainment could have asked for a greater chunk of the team --ONEXIM owns 80 percent of the Nets-- because Ratner's New Jersey Sports and Entertainment partnership didn't meet its obligation to cover certain team losses. The Nets are still reportedly losing $50 million a year.
Ozanian reports the Nets owner agreed to a two-year long extension in exchange for a "fee," not further described in the documents on file with the Securities and Exchange Commission. The "fee" is more likely an extension of credit.
The two sides have a good relationship with Prokhorov providing funding for the team and arena. Just last month, the two, working as Nassau Events, LLC, secured the winning bid on the renovation of Nassau Coliseum.
The story was first reported by Norman Oder of Atlantic Yards Report.
- Prokhorov Covers Nets Losses But Decides Not To Dilute Ratner's Stake In Team - Mike Ozanian - Forbes