NBA Approves Nets, Liberty Minority Stake Sale to Julia Koch

The NBA approved the sale of 15% of the parent company of the Brooklyn Nets, New York Liberty and Barclays Center, according to a memo sent to owners Monday. Billionaire Julia Koch and her family agreed to purchase a minority stake in BSE Global, which is controlled by Joe Tsai and Clara Wu Tsai, at a post-money enterprise value of roughly $6 billion.

The deal ranks among the highest valuations ever for a sports team in a transaction. Last week, Sportico broke the news of the pending transaction and its approval by the NBA’s advisory committee.

Koch, who was married to the late billionaire David Koch, is investing alongside her three children—David Jr., Mary Julia and John. The family will have the right of first offer on any future control sale. Koch Industries is not involved, and the Tsais will retain full control of the teams upon closing.

“I want to emphasize that both our families are committed to making the necessary investments in our franchises to build a sustainable winning culture,” Joe Tsai said in a letter last week to BSE employees, “as well as in the people and physical infrastructure to bring the best of sports and entertainment to our fans and audiences.”

In addition to rights to the venue and the two main basketball teams, BSE Global’s portfolio also includes the Nets’ G-League affiliate, their NBA 2K League team, their Brooklyn training facility and an outdoor skating rink operated in partnership with IMG. 

Last year, Sportico valued the Nets and their related businesses at $3.98 billion, the 13th highest in the NBA. The Liberty ranked third in Sportico’s recent WNBA team valuations at $130 million. Both teams are on the verge of significant increases for their media revenue with the NBA/WNBA close to a new TV deal worth more than $75 billion over 11 years. Business at the Barclays Center has also been strong. In April, it was the highest-grossing arena in the world, according to Billboard.

The $6 billion enterprise value includes $1.43 billion of net debt, per a memo sent to NBA owners to solicit votes to approve the deal, a copy of which was viewed by Sportico. The debt breakdown is $877 million of “enterprise indebtedness” and $550 million of “subordinated owner loans.” Koch and her family are paying $688 million in cash for their 15% stake of BSE Global, implying an equity value of BSE of $4.6 billion.

Koch and her family are worth $65.6 billion, according to Forbes, making her the third wealthiest woman in the world and 23rd overall. The family inherited 42% of Koch Industries when David Koch, brother of Charles and Bill Koch, died in 2019.