U.S. Rep. Bill Pascrell, Jr. (D-NJ-8) today sent a letter to NBA Commissioner David Stern urging him to thoroughly investigate former nickel mining baron Mikhail Prokhorov, who reached an agreement today to buy the New Jersey Nets.

The text of the letter follows:

September 23, 2009

Mr. David J. Stern
Commissioner
National Basketball Association
645 Fifth Ave
New York, NY 10022

Dear Mr. Stern:

I write to you today regarding the reported ownership deal between the New Jersey Nets and a Russian national, Mr. Mikhail Prokhorov.

As you are no doubt aware, there have been numerous media reports that Mr. Prokhorov has reached a deal to finance a large potion of the construction costs for current Nets owner Bruce Ratner’s Atlantic Yards project in exchange for an interest in the project, as well as a controlling interest in the Nets.  Mr. Ratner faces a December deadline to break ground on his development, or else lose much of his tax-free financing.  Due to the large level of taxpayer subsidies involved in the project, and Mr. Prokhorov’s background, this potential sale raises concerns.

According to documents released by the Empire State Development Corporation, taxpayers are providing over $2 billion dollars in financing and direct grants towards the Atlantic Yards project.  This represents a significant investment and risk by the taxpaying public.  Should this sale go through, a large stake in the project, as well as a majority stake in the Nets, would be controlled by a foreign corporation, a first for the NBA.  As a result, these taxpayer dollars will be directly subsidizing the profits and business risks of this foreign corporation, whose investment will be reportedly smaller then the public’s, instead of benefiting the taxpaying public.  Especially during these tough economic times, this is, at best, a questionable use of taxpayer money and it is a question that should be explored.

 Furthermore, 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.  I expect that the NBA will conduct a full and thorough review of Mr. Prokhorov’s background and businesses before allowing him to purchase a majority stake in the Nets.

 I thank you for your attention to this matter and look forward to the favor of your reply.

Sincerely,

Bill Pascrell, Jr.

Member of Congress

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