Move over, Mark Cuban. There's a new B.M.O.C. in NBA
basketball, and his name is Mikhail Prokhorov.
Reportedly worth $2.3 billion, Cuban -- hedge fund honcho
and owner of the Dallas Mavericks -- has had a good run. But
he's been pushed out of the headlines this week by news that
Russia's richest man, Onexim Group owner Prokhorov, is laying
out $200 million to purchase an 80% share in the New Jersey
Nets, alongside a 45% stake in the Nets' new stadium.
Prokhorov says he's doing the deal in the interests of
"developing Russian basketball, which will get access to the
most modern techniques of sports management and work with
young talent." But if that's the case, he might want to take
a closer look at the sports page. The Nets went 34 and 48
last season, repeating their 2008 performance and tying for
11th place in the Eastern Conference.
Personally, I think Prokhorov may be in this for the
bragging rights. After all, rival Russian oligarch Roman
Abramovich is worth a paltry $8.5 billion compared to
Prokhorov's $9.5 billion -- but Abramovich owns a
professional sports team, England's Chelsea Football
Club.
NBA team, check. So what's next on the shopping
list?
So Prokhorov has his NBA franchise, and good on 'im.
But what concerns
investorsis where he'll make his next purchase.
While this is his first venture into North American sports,
Prokhorov's no stranger to investments of other sorts. In
2006, his business partner at
Norilsk Nickelpurchased a 35% interest in
Plug Power (NYSE: PLUG); Norilsk also owns a
controlling interest in platinum producer
Stillwater Mining (NYSE: SWC).
Prokhorov himself chairs Russia's
Polyus Gold , so we know he also likes shiny
metals. What might interest him here? Well,
GoldCorp (NYSE: GG) carries a $28 billion
price tag -- perhaps a bit out of his price range. However,
Yamana Gold (NYSE: AUY) looks much more
accessible, selling for a mere $8 billion.
Prokhorov might have even better luck prospecting in
another field that interests him --
hydrogen
fuel cells. Operating on high tech's
bleeding edge, these firms are in perpetual need of
capital. Consequently, they're priced to "cell"
– Plug costs less than Prokhorov is
spending on the Nets, and rival
Ballard Power (NYSE: BLDP) is priced only a
tad higher.
Of course, if Prokhorov is a savvy investor, he'd be
better advised to eschew the vanity of a controlling interest
and pursue one of his other interests,
nanotechnology. Big, profitable names like
Intel (Nasdaq: INTC) and
IBM (NYSE:IBM) are involved in the industry.
With each company being valued in excess of $100 billion,
Prokhorov wouldn't be able to acquire control of these
giants. But they offer something even a billionaire can
appreciate:
Profits.
This article was originally published as
New Jersey Nets, Meet Your New Owneron
Fool.com
Copyright © 2009 The Motley Fool, LLC. All rights
reserved.
|