Guggenheim Partners CEO on Nets rumors: 'Happy to look at their information'
They may not be willing to break off a piece of the Los Angeles Dodgers in return, but Guggenheim Partners seem intrigued by the idea of a working relationship with the Brooklyn Nets.
On Thursday, word broke that Russian billionaire and Brooklyn Nets owner Mikhail Prokhorov was looking to negotiate a "combination of assets" with Guggenheim Partners, the group that owns the Los Angeles Dodgers and Los Angeles Sparks.
Further reports suggested that said "combination of assets" could actually be the first step towards a full sale of the Nets, with Prokohorov "actively looking to cash out."
Early word from the Guggenheim Partners is that they seem far more interested in being buyers than sharing what they already own.
One Dodgers source told ESPN's Ramona Shelburne that "we don't see any transaction likely to occur." Guggenheim Partners CEO Mark Walter was also steadfast that he's not breaking off a piece of the baseball franchise, saying, "I am the controlling owner of the Dodgers and I have no intention of selling the Dodgers."
In terms of the Nets, though, Walter seemed open to the idea of exploring further expansion in the sports industry.
Dodgers Chairman Mark Walter: "As for the Nets, I have not seen their numbers. They are a terrific franchise (cont'd)
— Ramona Shelburne (@ramonashelburne) October 2, 2014
Walter (cont'd): "I would be happy to look at their information & any proposal anyone wanted to make to me -- as I would with any proposal.
— Ramona Shelburne (@ramonashelburne) October 2, 2014
An ESPN report has Guggenheim Partners valuing the Nets at $1.2 billion and their facilities at $1.1 billion, numbers that the financial group - worth an estimated $210 million - would have little trouble reaching.
It certainly sounds as if discussions are at least taking place, and ESPN reported late Thursday that Prokhorov has met with Guggenheim executive Todd Boehly in Russia. Those discussions would have apparently seen Prokhorov remain in control of the Nets, while minority team owner and majority facility owner Bruce Ratner maintained control of Barclays Center.
Where all of this is heading, and how serious discussions are, remains unclear. It's possible Prokhorov is "looking to cash out" only part way, divesting some while the franchise sale market is robust, maintaining ownership but limiting his exposure to the reported $144 million the franchise lost last season.