Brooklyn Nets' New Owner Has Protection Against Lavish Prokhorov Spending
- Alibaba billionaire will own 49 percent of Brooklyn’s NBA team
- Tsai sought to avoid losses related to player salaries
The Brooklyn Nets play in Phoenix, Arizona, on Nov. 6, 2017.
Photographer: Christian Petersen/Getty Images
Before buying into the Brooklyn Nets, billionaire Joe Tsai discussed putting an unusual condition to his investment: a refusal to cover any losses related to player salaries, according to people familiar with the sale contract.
Tsai, co-founder of Chinese e-commerce giant Alibaba Group, last month agreed to buy 49 percent of the National Basketball Association team in a deal that values the franchise at a league-record $2.3 billion. Typically in professional sports, limited partners must contribute to offset losses. In the case of the Nets, the two sides discussed an exemption that would have protected Tsai from “cash calls” associated with player payroll.