Jay Z is finally selling his share of the Brooklyn Nets with new head coach Jason Kidd purchasing half of his shares and a team’s minority owner buying the other half of the share, according to NetsDaily.com and the NY Post.
“Other owners want to give Jason a part ownership of the team, and urged Jay to sell his shares to him,” a source told the Post.
Jay Z has had to share his stake in the team since he became a certified agent as one person cannot represent both players and a team per league rules. He owns 0.1608 percent of the team which is roughly 1/6th of one percent. Kidd is expected to pay $500,000 for half of that share. The funny thing about all of this was that it was reportedly Kidd who originally gave Jay Z the idea to purchase a stake in the club in the first place.
The other half of the share is being purchased by NSE, the ownership group that is headed by Bruce Ratner that sold 80 percent of the team to Mikhail Prokhorov in 2010.
Jay Z initially paid somewhere between $100,000 and $400,000 for his share at the time so he’s at least doubled his money and potentially gotten up to 10 times the value. Per the NetsDaily.com report, Jay Z could have gotten more money, but choose to take less to offload the team sooner. As it stands, getting $1 million for 1/6th of one percent of the club puts the team’s value at somewhere near $600 million. That’s amazing considering that owner Mikhail Prokhorov paid just $200 million for 80 percent of the team in 2009.
Unlike agents, it is not seen as a conflict of interest for a coach to own part of a team.
MY TAKE: This brings an interesting element to the season. For one thing, people worried about Kidd not having enough authority in the eyes of his players can probably rest easy now. He’s part owner now and if he doesn’t like a player his opinion will have that much more authority when it comes time to decide to keep or get rid of any players he might have problems with.
It does create a potential problem though because what do they do now if he is a bad or even mediocre coach? Even if his stake in the team is incredibly small, it still won’t be easy to just ask him to pack it up and go away. That was already going to be a hard move to make considering what he means to this franchise, but now it could be impossible. Better hope that he works out.