Tuesday, July 1, 2014

Report: Brooklyn Nets lost $144 million last season

It would appear the Brooklyn Nets are managing their money about as well as newborn babies handle their bowel movements.

According to Grantland's Zach Lowe, the careless spending and neglect of the league's luxury tax by owner Mikhail Prokhorov and general manager Billy King has saddled the team with a massive financial loss.

The basketball side of the Nets' business is projected to have lost $144 million over the 2013-14 season, according to a confidential memo the league sent to all 30 teams in early June. (Grantland has reviewed and verified the memo with a half-dozen sources.) If that strikes you as out of whack, that's because it is.

The NBA expects nine teams will end up having lost money once luxury-tax distribution and revenue-sharing payments are finalized. The Nets, with that monster $144 million figure, are the biggest losers. Next in line? The Wizards, with projected losses of about $13 million. That's right: The Nets lost $131 million more than any other NBA team last season. This is what happens when you pay $90 million in luxury tax for an aging roster and play in a market so large you are ineligible to receive any revenue-sharing help.

The fact that Brooklyn lost $131 million more than any other NBA franchise is almost unbelievable. Well, until you start looking at their team payroll sheet.

Brooklyn's roster was filled with aging and overpaid veterans last season which added up to be the most expensive roster in the entire league. Yes, even more than both the Knicks and Heat, which ranked second and third, respectively.

While $144 million might not sound like a lot for a man who is estimated to be worth $10.9 billion, according to Forbes, Prokhorov probably isn't a fan of losing this much money in one year, especially when it comes without a championship.

Via Bleacher Report

No comments:

Post a Comment