Scott Soshnick, who's following Mikhail Prokhorov's efforts to get a good price for his stake in the Nets says that Jason Kidd has asked the NBA for an extension of a deadline to sell his stake in the team.
The custodian overseeing Milwaukee Bucks coach Jason Kidd’s minority ownership stake in the Brooklyn Nets has asked the National Basketball Association for more time to sell it, according to two people with direct knowledge of the request.
The deadline for disposing of his tiny interest is February 1. Should the NBA grant Kidd the exception, and Prokhorov and minority owner Bruce Ratner sell their stake at a large premium, Kidd would reap a substantial profit off the sale of a team that he abandoned. Kidd purchased his interest from Jay-Z. Jay-Z had to sell it when he became a certified NBA player agent.
Kidd now owns 0.42 percent (roughly 2/5ths of one percent) of Nets Sports & Entertainment, the minority stakeholder in team and arena, said a source familiar with Kidd's holdings. That in turn gives him a 0.08 percent (roughly 1/12th of one percent) stake in the team and 0.23 percent (roughly 1/4 of one percent) stake in the arena, according to the source. The disparity is due to the larger NS&E stake in the arena. In addition, NS&E reportedly will own a stake in Nassau Events, LLC, which is rehabbing the Nassau Coliseum, through NS&E.
Kidd bought half of Jay-Z's stake while another investor bought the other half in late 2013, said two ownership sources. One of the sources told NetsDaily at the time of the purchase that Kidd and the other investor each paid Jay-Z $500,000. That stake would be worth more than twice that much if the Nets sold for $1.5 billion, the price Forbes placed on the franchise this week.
NSE is the ownership group headed by Ratner that sold 80 percent of the team to Prokhorov in 2010. Jay Z, whose name is Shawn Carter, suggested during his opening night concert at Barclays Center in 2012 that the real number was higher than what the Times' David Halbfinger had reported. He has never revealed the specific number.
The source said that Jay Z had originally planned to sell half his shares to another suitor, but that Kidd asked he sell the stake to him. The transaction would close the circle for Jay Z and J-Kidd. It was Kidd who reportedly was the first to suggest that Jay Z buy into the Nets 12 years ago. That conversation took place at Kidd's 30th birthday party, held at Jay Z's 40/40 Club in Manhattan, according to reports. Not long after, Jay Z met with Bruce Ratner.
Kidd is not the only Bucks investor in the Nets. Marc Lasry, the Bucks principal owner, still owns a piece of the Nets as well. He had been part of the NS&E ownership group, said two sources. The NBA permitted him to hold the stake through a marital trust as long as he exercised no control over the Nets.
- Jason Kidd Said to Ask for Extension in Selling Nets Stake - Scott Soshnick - Bloomberg News
Report: Jason Kidd Still Hasn't Sold His Stake In The Brooklyn Nets, Seeking Extension To Sell - Devin Kharpertian - The Brooklyn Game