Less than two months after Forest City Enterprises announced plans to sell its 20 percent stake in the Brooklyn Nets, the team’s majority owner, Mikhail Prokhorov, said he will cut back on spending. The team is seeking about $200 million for Forest City’s share, which would peg the value of the NBA team at $1 billion.
Prospective bidders have expressed concerns they would need to cover substantial losses in addition to investing $200 million, the New York Post reported. The team racked up a loss of about $50 million last year.
Bruce Ratner, boss of Forest City, paid $300 million for the Nets 10 years ago while the club was still based in New Jersey. He sold 80 percent of the team — along with a 45 percent stake in the Barclays Arena, which Forest City developed — to Russian billionaire Prokhorov for $200 million in 2009.
Ratner has hired investment bank Evercore Partners to advise him on the sale of his remaining 20 percent stake in the Nets. [NYP] — Mark Maurer