NY Post · Nov 4, 2015
NBA debt ceiling forces Prokhorov to rework Nets, Barclays deal
Mikhail ProkhorovMikhail Prokhorov has hit an obstacle to taking sole control of the Brooklyn Nets and Barclays Center: the NBA’s debt ceiling.
The Russian billionaire has been seeking to buy full ownership of the team and arena from real estate developer Forest City Enterprises since September.
But NBA Commissioner Adam Silver held up the sale as structured because it would push the team over the league’s $250 million debt cap, sources said.
“The NBA didn’t provide a waiver,” said one source.
To finance the purchase, Prokhorov wanted to borrow more money against the team, whose debt load is already bumping up against the league’s limit, said a source close to the situation.