MOSCOW, September 24 (RIA Novosti) - A U.S. Congressman has asked the National Basketball Association to look into a $200-million deal involving Russian billionaire Mikhail Prokhorov buying a 80% stake in the New Jersey Nets, PolitickerNJ news website said.
"Mr. Prokhorov's background raises questions about his fitness to be the owner of a high-profile NBA franchise. Both Mr. Prokhorov's business and personal history have come under intense scrutiny in his home country and abroad," the website cited Bill Pascrell as saying.
Russia's wealthiest person, according to the latest Forbes estimate, signed on Wednesday a letter of intent with New Jersey Nets owner Bruce Ratner to acquire a majority stake in the club and to take part in Ratner's Atlantic Yards mega-development project to construct a sports, residential and business complex in Brooklyn.
"According to documents released by the Empire State Development Corporation, [U.S.] taxpayers are providing over $2 billion dollars in financing and direct grants towards the Atlantic Yards project," Pascrell said.
The congressman said that U.S. taxpayers would be "directly subsidizing the profits and business risks of this [Prokhorov's Onexim Group] foreign corporation, whose investment will be reportedly smaller then the public's, instead of benefiting the taxpaying public."
The NBA club said that, according to the preliminary agreement, Onexim Group "will invest $200 million and make certain contingent funding commitments to acquire 45% of the arena project and 80% of the NBA team, and the right to purchase up to 20% of the Atlantic Yards Development Company, which will develop the non-arena real estate."
However, while the U.S. politician raised his concern over the deal, NBA Commissioner David Stern expressed his approval for the deal.
"Interest in basketball and the NBA is growing rapidly on a global basis and we are especially encouraged by Mr. Prokhorov's commitment to the Nets and the opportunity it presents to continue the growth of basketball in Russia," Stern said.
New Jersey Nets said in a statement on Wednesday that "the transaction is expected to close by the first quarter of next year upon certain conditions being fulfilled, including approval by the NBA's Board of Governors."
Prokhorov, an avid basketball fan, also funded CSKA Moscow football club through his company Norilsk Nickel, until selling his 25% stake in the mining giant last year.
Several Russian businessmen have become owners or shareholders in major sports teams.
Roman Abramovich owns Chelsea, while Metalloinvest owner Alisher Usmanov is the second-largest shareholder in Arsenal. Arkady Gaidamak, a Soviet emigrant living in Israel, is the owner of Israeli football club Beitar Jerusalem.
