Julia Koch and her children are set to acquire a 15% stake in BSE Global, the parent company of the Brooklyn Nets, from current owners Joe Tsai and Clara Wu Tsai. This development was initially reported by the New York Post in February and further detailed by Scott Soshnick and Eben Novy-Williams of Sportico.
BSE Global is valued at $6 billion for this transaction, a record high for an NBA franchise stake sale. This valuation includes the WNBA’s New York Liberty and the Barclays Center. The Tsais initially acquired the Nets, Liberty, and Barclays Center for a combined total of $3.3 billion in 2019. The increased valuation is attributed to the anticipated lucrative TV deals for the NBA and WNBA, as well as the successful operations of the Barclays Center, which has become a top concert venue.
An insider explained to Brian Lewis of the New York Post that the $6 billion valuation is justified given the potential for new NBA media deals, the rapid growth of the WNBA, and the economic success of the Barclays Center.
Julia Koch inherited a significant portion of Koch Industries, one of America’s largest conglomerates, after the death of her husband, David Koch. The Koch family is currently worth $65.2 billion, according to Forbes. Despite this significant investment, Koch and her children, David Jr., Mary Julia, and John, will not have the opportunity to gradually assume majority control of the Nets. They also won’t hold an alternate governor position within the franchise. However, they will have the right of first offer if Joe Tsai decides to sell his majority stake in the future.
The NBA’s advisory committee has reviewed and recommended the sale terms, and the league’s Board of Governors is expected to approve the transaction in a vote scheduled for June 24.
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