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Here's the official statement from the Nets:
“After discussions with Kenny about the progress of the season, we mutually agreed that a coaching change would be in the best interest of the team,” said Sean Marks. “This was an extremely difficult decision, however the organization believes it is one that is necessary at this time. Kenny was instrumental in developing our players and building the identity and culture we have become known for over these past four seasons. The foundation he helped put into place here is one that we will continue to build on in the coming seasons.