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Nets worth 60% more in Brooklyn, may turn profit this season

Aug 23, 2012, 5:50 PM EDT

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This is why Nets ownership has worked to make a move to Brooklyn — it’s all about the dollars.

The Nets are worth 60 percent more now than they were last season, according to a sports economist. And they may well turn a profit this year, too. That according to the New York Post.

As the Nets gear up for the first season in the soon-to-be-completed Barclays Center, the team is now worth roughly $575 million, according to one sports investment banker. That’s 60 percent more than they were valued just last season by Forbes….

The Nets are projected to generate $140 million in revenue and earn between $10 million and $15 million in profit, a source with direct knowledge said. Last year, the NBA franchise took in half that amount and lost nearly $30 million.

Nets’ owner and Russian billionaire Mikhail Prokhorov’s stake in the team is worth double what it was when he bought it, according to the Post’s math. After sitting through the lockout we all know the owners know how to fudge numbers, but if that is even close to true it is a great investment.

And really, the team is just a slice of the financial pie, the real money is in the Brooklyn Yards development — the residential and retail that will go up around the Barclays Center. Prokhorov and former Nets owner Bruce Ratner are the ones standing to make money off that.

With all those dollars, a max deal for Brook Lopez seems a small price to pay.

It’s good to be the Nets.

  1. kvanhorn87 - Aug 23, 2012 at 5:56 PM

    Help me with the math here:
    The Nets are projected to generate $140 million in revenue and earn between $10 million and $15 million in profit, a source with direct knowledge said. Last year, the NBA franchise took in half that amount and lost nearly $30 million

    That means last year cost 100 mill to run team brought in 70 lost 30
    This year brings in 140 mill and makes 10-15 mill.
    So their operating costs went up 25-30 mill? Considerably more risk just to make 10-15 mill

    • fm31970 - Aug 23, 2012 at 6:00 PM

      They took on Joe Johnson’s contract.

    • sirclutch - Aug 23, 2012 at 6:09 PM

      There are various ways they could have increased their operating costs by that amount. The first one being player salaries…I haven’t looked at their payroll last year but they’ve taken on Joe Johnson’s deal, signed Brook Lopez, Gerald Wallace, and Deron Williams to big deals. The second is rent or depreciation expense, which is likely considerably higher with the new arena. The third is marketing expenditures…they have been promoting a ton for this team.

  2. imthedudedude - Aug 23, 2012 at 6:07 PM

    C.R.E.A.M.

  3. kvanhorn87 - Aug 23, 2012 at 6:11 PM

    A 10% profit margin sucks plain and simple. When you risk that kind of money is it worth it? Of course

  4. lakerluver - Aug 23, 2012 at 6:47 PM

    Whoopie doo, now win a championship!!

  5. BigBeachBall - Aug 24, 2012 at 2:04 AM

    the knicks will turn into the New York version of the clippers…

  6. yousuxxors - Aug 24, 2012 at 1:42 PM

    the knicks will never be the clippers sorry

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