The parent of the Brooklyn Nets, New York Liberty and Barclays Center was assigned a post-money enterprise value of about $6 billion in an upcoming stake sale, according an email sent Tuesday to NBA owners, among the highest valuations ever for a U.S. sports team in a transaction.
Billionaire Julia Koch and her family have agreed to purchase 15% of BSE Global, which is controlled by Joe Tsai and Clara Wu Tsai, at that valuation, according to the memo, a copy of which was viewed by Sportico. The NBA’s advisory finance committee has reviewed the transaction and recommended that it be approved by league governors, who must vote by June 24.
Koch, who was married to late billionaire David Koch, is investing alongside her three children—David Jr., Mary Julia and John. The family will have 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. A spokesman for Julia Koch declined to comment.
“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 Tuesday letter 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.”
Sportico previously reported that Koch was in talks for a 10% stake of BSE. Representatives for the NBA and BSE declined to comment on the details; an attempt to reach Koch, who lives in New York, wasn’t immediately successful.
The investment comes amid value appreciation for all of the major BSE assets. Not only are NBA valuations on the whole up 50% in the past three years, but the WNBA has seen strong commercial growth in that span, particularly during this current season. In April, the Barclays Center was the highest grossing arena in the world, according to Billboard.
Sportico currently values the Nets and their related businesses at $3.98 billion, the 13th-highest in the NBA, and the Liberty at $130 million, third in the WNBA. The $6 billion enterprise value likely reflects growth in the economics of the Barclays Center, and the impact of the NBA/WNBA’s new TV deals, which are being finalized and expected to more than double both leagues’ annual income from their media partners.
Koch and her family are worth $65.2 billion, according to Forbes, making her one of the wealthiest women in the world. The family inherited 42% of Koch Industries when David Koch, brother of Charles and Bill Koch, died in 2019. She and her children launched the Julia Koch Family Foundation last year, and she is prominent philanthropist. Earlier this year, the foundation donated $75 million to NYU Langone Health to build a medical office tower in West Palm Beach, Fla.
Koch is a rare female investor to buy into the NBA on her own. Billionaire Miriam Adelson purchased a majority stake in the Dallas Mavericks from Mark Cuban last year. Laurene Powell Jobs owns a large minority stake in Monumental Sports & Entertainment, the parent of the Washington Wizards and Washington Capitals.
Tsai bought the Nets and rights to the Barclays Center in stages, starting in 2018. The following year he consolidated ownership at $3.3 billion valuation. That was the highest price ever paid for control of a U.S. sports team, a record that stood until the NFL’s Denver Broncos sold for $4.65 billion in 2022.
The Nets have made the playoffs in five of the past six years, but haven’t been to the conference finals in two decades. The team averaged 17,568 fans per game last year, ranked 21st in the league. The Liberty won the Eastern Conference last year before falling in the WNBA Finals. The team currently has the league’s second-best record and is second in league attendance.
The Barclays Center hosts a large number of non-NBA events, a critical piece of BSE’s annual revenue. The venue held 71 such events from Nov. 1, 2022, to Oct. 31, 2023, according to Billboard. Those shows grossed $73.7 million, which ranked 10th among worldwide arenas bigger than 15,000 seats.
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.
The $6 billion would be among the highest valuations ever for a sports team in a transaction. The NFL’s Washington Commanders sold last year for $6.05 billion.
(This story has been updated in the third paragraph that Julia Koch declined to comment.)