September 23, 2009

Prokhorov signs "tentative" deal to buy Nets

So apparently the crazy Russian was partly serious after all: New Jersey Nets owner Bruce Ratner has announced what the New York Times calls a "tentative" deal to sell 80% of the team and 45% of his as-yet-unbuilt Brooklyn arena to nickel magnate Mikhail Prokhorov — though for only $200 million, not the $700 million that had previously been rumored.

As Norman Oder notes, this is just enough to provide the bridge financing Ratner needs to complete the $900 million arena. It remains to be seen, however, how he'd pay off the other $700 million in loans he's expecting to take out, especially now that he's looking at having Prokhorov as a tenant. No details have emerged as to the lease the Nets would sign or how much arena revenue they'd share with Ratner's development company, which would remain majority owner of the building itself.

And, of course, the NBA still has to sign off on allowing Prokhorov to become the first non-North American into its owners club — though I'm sure not the first to be accused of running a prostitution ring. Way more on this as details emerge, I'm sure.