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Ratner, Russian Fund Strike Arena Deal

NEW YORK CITY-The agreement between Forest City Ratner Cos. and Mikhail Prokhorov's Onexim Group gives the Russian billionaire majority ownership of the Nets.

By Paul Bubny | Updated on September 23, 2009

NEW YORK CITY-With a $700-million bond sale in the offing to finance construction of the Barclays Center arena that will house the Nets basketball team, Atlantic Yards developer Forest City Ratner Cos. has brought in a financial partner in the form of Onexim Group–an investment fund controlled by Russian billionaire Mikhail Prokhorov. The letter of intent gives Onexim majority ownership of the Nets and nearly half ownership of the arena.

In a joint statement, FCRC, Nets Sports and Entertainment and Onexim say that entities to be formed by Onexim will invest $200 million and make “certain contingent funding commitments” to acquire 45% of the arena project and 80% of the NBA team. Onexim will also have the right to purchase up to 20% of the Atlantic Yards Development Co., which will develop the non-arena real estate that comprises the majority of the $4.9-billion, 22-acre mixed-use project.

Commenting that Onexim and Prokhorov “will be great partners for this project,” FCRC chairman and CEO Bruce Ratner says in a release that he’s “thrilled that smart global investors appreciate the exciting economic potential of Brooklyn. We are one step closer to achieving our goals of creating much needed jobs and economic development for Brooklyn and the city.”

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