Details emerge in Koch deal, including New York Liberty value of $200 million, WNBA record
Photo by Catalina Fragoso/NBAE via Getty Images
New details emerge from Julia Koch’s purchase of minority stake in Nets, Barclays Center and Liberty. The devil is always in the details, particularly in transactions where the number of zeros and other digits reach eight or nine figures. And it’s true with Joe and Clara Wu Tsai’s sale of a 15% sale of BSE Global, their holding company, to Julia Koch and family.
Both the New York Post and Sportico report Friday on the fine points of the deal, including how the deal was structured in terms of cash vs. debt, and how much each element of BSE Global — the Brooklyn Nets, New York Liberty, Barclays Center and the rest — are valued.
The bottom line is that the earlier numbers are rounded up a bit. The valuation, first reported at $6 billion, is actually $5.8 billion for all the elements and the Tsais’ cash haul is $688 million, still huge numbers. Indeed, much of what the Koch family is paying out goes to retiring BSE Global debt.
The Post’s Brian Lewis and Josh Kosman also report that the deal values the Liberty at a “roughly” $200 million, which is very likely a WNBA record and reflective of the women’s league’s rise. Last year, the Seattle Storm sold minority stakes that valued the team at $151 million. The Tsais bought the Liberty from James Dolan and MSG in 2019 reportedly for the assumption of team debt and a promise of future profit-sharing.
Lewis and Kosman also reports that the deal values the Nets at $3.8 billion and Barclays Center at $1.5 billion. That’s a big jump from 2019 when the Tsais paid Prokhorov $2.35 billion for the team $1 billion for the Barclays Center.
The Post has also reported that Koch will not be named an alternate NBA governor as part of the deal. The current alternates are Oliver Weisberg, who heads the Tsais’ family investment vehicle, Blue Pool Capital; Sam Zussman, CEO of BSE Global, and Sean Marks.
The agreement needs approval from league owners. Sportico has reported the NBA’s advisory/finance committee has recommended it be approved; Owners have until Monday to vote.
Koch family’s 15% stake in Nets values struggling NBA franchise at $3.8 billion: source - Brian Lewis & Josh Koshman - New York Post
KOCHS PAYING $688M FOR NETS STAKE, CASH WILL PAY DOWN OWNER DEBT - Scott Soshnick & Eben Novy-Wlliams - Sportico
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