Fashion
Alibaba co-founder, Joseph Tsai, has concluded a deal for the controlling interests in NBA team Brooklyn Nets for $2.3 billion – an all-time record-high price for any U.S. sports franchise.
In addition to the $2.35 billion deal for the 51 percent stake, which makes Joseph Tsai the sole owner of the team, he will also pay nearly $1 billion more in a transaction for the Barclays Center.
According to a report which cites two anonymous sources, the transaction is expected to complete by the end of September, pending approval by the NBA’s Board of Governors. Tsai purchases both the team and the stadium from Russian billionaire Mikhail Prokhorov, from whom he also already purchased a 49 percent stake from in 2018.
Tsai’s 2018 acquisition included the option to become the sole controlling owner in four years. The team’s recent acquisition of megastars, Kevin Durand and Kyrie Irving from free agency, likely played a role in Tsai’s decision to exercise the right early and the team will undoubtedly experience an exponential boost in popularity, if not win rate.
Chinese exposure to global assets through major acquisitions continues to increase and sports teams, specifical football in Europe, have been trending for years. Examples of stakes purchased include in Aston Villa, West Bromwich Albion, Wolverhampton Wanderers and Southampton in England; Italy’s A.C. Milan and Inter Milan; Spain’s Atletico Madrid; and Slavia Prague in the Czech Republic.
And Tsai’s links with China through the gargantuan tech firm – in a nation where the NBA estimates one-fifth (300 million) of the population plays basketball – is likely to create synergies.
The team is in a better place today than ever before and I know that Joe will build on that success, Prokhorov said.
