The NBA's tagline is "Amazing things happen." Right now the most amazing thing happening is that David Stern and the rest of the NBA are acting like their angel investor Mikhail Prokhorov is some sort of a noble gentleman with a spotless reputation.
It's easy to sympathize with the NBA. Just over a month ago, Stern announced that the league stands to lose $400 million this season. Prokhorov's arrival must seem like a hallucinogenic godsend. He's offering $200 million to buy the majority of the New Jersey Nets along with 45% of the the controversial Atlantic Yards' basketball arena.
Prokhorov would become the first non-North American owner of an NBA team, a precedent which perhaps justifies taking a closer look before shaking on the deal.
With an estimated worth of $13 billion, Prokhorov is currently the richest man in Russia. But there are nice ways to get a billion dollars and there are not nice ways to get a billion dollars. One classic not so nice way is you deal with people nobody else will deal with. Like, for instance, Zimbabwe's president Robert Mugabe.
According to an article in the New York Post, Mikhail Prokhorov's Renaissance Capital investment bank has interests in the Zimbabwean stock exchange, banks, a cellphone company, mining and a swanky, private big-game reserve.
One could argue that if Prokhorov wants to profit by doing business with Mugabe, well, that's his business. Unless he wants to do business here in the United States. where it happens to be illegal. The United States slapped sanctions on Zimbabwe in 2003. In 2008, sanctions were further strengthened by that old softie on human rights, President George W. Bush.
So, Mugabe must be pretty bad. But how bad?
Last year, Mugabe was rated the worst dictator in the world by Parade magazine (not exactly a left leaning bleeding heart publication.) His government denies voters their rights, brutalizes the opposition, censors the press, abuses women, inducts children into the army, and criminalizes homosexuality. His regime has a record of torturing students, journalists, even Americans. His country is recognized as one of the global leaders in the trafficking of human lives for forced labor and sexual exploitation. His nation is a place where human rights activists disappear forever.
Shorter answer: Mugabe is very bad.
New Jersey Congressman Bill Pascrell is now asking the sorts of questions the NBA should have asked during their "background check" of Prokhorov last fall (I wonder what sort of questions you ask a man who wants to give you 200 million dollars?) According to the Post, Pascrell is requesting the Treasury Department investigate Prokhorov's many investments in Zimbabwe.
Ironically, one of the reasons the U.S. government finally cracked down on Mugabe was because of his regime's habit of "government backed land grabs." It seems the Russian oligarch might actually find this kind of behavior attractive, since the Atlantic Yards project he's investing in here is the worst government backed land grab to hit New York since they buried Robert Moses.
Anyone interested in human rights (that would be the left side of the room) or property rights (that would be the right side) should email Congressman Pascrell's office and let him know you support his attempts to enforce the law. While you're at it, email David Stern and ask him to put off approval of Prokhorov's deal until these questions are comprehensively answered. And don't feel bad about the Nets losing their new owner. They're used to losing.
This issue is essentially done once the NBA approves Prokhorov, possibly next week.
Then the Congressman could no longer prevent the Nets from moving out of his area.
There is evidence that the company didn't have relations with any sanctioned individual or company as specified in the US agreement. People just didn't understand what the agreement said.
Just yesterday it was revealed that there would be a Condemnation hearing on April 21, at which time it is expected that a firm date for the eviction of the remaining tenants would be given.
That would in turn prompt the NBA to approve of Prokhorov, thus ending attempts to prevent the Barclays/Atlantic Yards project.
http://www.netsdaily.com/2010/4/13/1418593/brooklyn-arena-eviction-hearing#comments
What a bunch of financial wizards.
Hmmm, even worse than the dictatorship in North Korea (a giant, starving dungeon of a country), Saudi Arabia (where they still chop off heads and hands), and China (executed as many as 35,000 "criminals" in the past five years and then harvested the organs from their bodies)? How about Israel-- Now there's a REAL democracy for you, where the opposition only gets killed if they're Arabs.
I think the bottom line for Western Countries and their issue with Mugabe is the fact that, unlike South Africa, he has always intended to make real the promise of real power for native Africans-- even if it means taking back the land stolen by white settlers. And let's not forget that Western nations like Britain & the U.S. promised to foot the bill for paying these white farmers for "their" land and then they reneged on the deal. That Mugabe has become a dictator in the process is no surprise-- that's what happens when you and your country is placed under siege by "economic hit-men" in search of Third World uncle toms (ask the Castro brothers about that).
As for the tycoon from Russia that wants to buy the NJ Nets: Is he more of a thief then the other tycoon owners in the NBA?
The US, and all other European countries have done enough damage.
I will post it when available, but basically they confirm what was posted here earlier, that sanctions apply to individuals and companies, non of which they had dealings with.
http://sports.espn.go.com/new-york/nba/news/story?id=5079743
Also note that it states that Prokhorov will be voted upon by NBA as soon as "a firm date is set" for the State of NY to take full possession of the Arena site.
This point was never accurately passed along before, as there could be a month month difference in times.
Prokhorov had to convince Putin that in the end he would strengthen Russian basketball with this purchase. He plans on have training facilities for Russian basketball players (also training Executives)
Already 2 Russian basketball experts have been mentioned for management positions with the Nets - one as an associate GM and the other will probably be a recruiter for International players.
Also, by raising the status of this "most interesting person in the world", Mikhail Prokhorov will be helping the image of Russia.
Originally Putin didn't like the idea of take money out of Russia.
In the 60 Minutes interview, Proky said he plans to make a nice profit in the end.
i also think this idea of selling off American products to foreign entities is & will continue to be a 'bad idea.' just look at our dwindling manufacturing sector that has been sold-off to foreign entities.
"most interesting person in the world"??? more like a "person of interest"
as for what Putin "said", yes because a man who created a position in the Russian gov't solely so he can keep his power is to be believed.
Are you aware of illicit activity by him? Why slander him if you have no evidence of any wrong doing?
The remaining local bar, is expected to relocate and should be a thriving business come fall of 2012, when the Barclays Center Arena opens.
The NBA is losing hundreds of millions of dollars as the above article states (The NJ Nets lost $64 million for fiscal 2009 alone, as was revealed today). Stern is only trying to SAVE the NBA and expanding interest to Russia is one smart maneuver.
And for the record, Prokhorov came to wealth by being at the right place at the right time. As stated in the 60 Minutes interview, the way that the Russian Govt. gave him control of some industries was quite legal. He made his biggest money ($10 billion), when he sold his interests amid bad publicity during a false French hooker scandal. Besides being the "Most interesting man in the world", he was also the luckiest, because this happened months before the financial meltdown!!
the remaining local bar??? that's it?! well good thing the bar "might be saved"
now the only thing we CAN agree on is how much money the NBA is loosing. but i think Stern must be the only President of a corporation who has lost considerable money, yet keeps his job. there were a series of things that they've done & continue to do that have hurt their finances: expansion? not a good idea. they haven't been able to manage what they have here! from the a-hole players or players who weren't ready for the NBA to 'ok-ing' franchises in markets that wouldn't support it: Charlotte, New Orleans, Memphis, etc.
expanding to Russia w/o a proper apparatus in place & that INCLUDES NBA management seems like a bad idea.
It is somewhat consistent with the recent posts.
Renaissance Capital, Africa is quoted:
1. They are well aware of the US sanctions and have not violated them.
2. They only have 2 relatively small assets in Zimbabwe.
3. As a result, they didn't attend a meeting held in February which included some of the sanctioned individuals.
As others have said, they are allowed to do business in Zimbabwe as long as not involving the specific sanctioned individuals and companies.
If they promote Democracy, then there apparently is no violation, and that is probably a gray area.
Since Obama has already told Medvedev that there would be no problem with approval of Prokhorov in the NBA, I think Obama can get this matter behind us.
If that NJ Congressman wants Obama to help with his reelection, I think he will quiet down.
Now we know why the NBA didn't bother to pursue this political issue further.
http://blogs.wsj.com/source/2010/04/12/of-billionaires-basketball-and-banned-investments-nets-deal-faces-new-obstacle/
This obvious witchhunt by a NJ congressman desperate to save the Nets from leaving his state and the pathetic arena the team calls home, reeks of aggesively ignorant nativism. Those supporting property rights who are anti-eminent domain, of which I am one, are unfortunately likely to jump on this bandwagon, to add fire to their cause at the expense of the truth and reality.
"to have materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the Government of Zimbabwe, and senior official thereof, or any person whose property and interests in property are blocked pursuant to Executive Order 13288(the 2003 version)."
And if the Zimbabwe government is turning the corner toward democracy, as you claim, why would President Obama extend the 2008 executive order just 3 weeks ago? Clearly, President Obama doesn't agree with you. And Prokhorov is clearly supporting the Zimbabwe government.
“J to the dizzo from New to the Jerzay.†Interesting that Jay-Z found the exit door during this Nets transaction. Nothing looks more blingy than an entire team of ballers blasting their part-owner’s music in luxury sports cars. How can someone get more gangsta than that? According to you, Mr. Barlow, much more.
From music-video prone to pure political power, it’s a bit of an oxymoron to go from spoiled girls in string bikinis on a Lamborghini, to women being beaten and general mistreating for the reason of improving the Nets embarrassing losing season; their record is 12-68 thus far this year. Eek!
David Stern was quoted in a 2009 Highbrid Nation article as saying, “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.â€
I agree it’s a shame that such unscrupulous business dealings have helped to generate the cash to save this struggling NBA team. I’ve been an NBA fan for over 17 years. But I’ll have to say, when it comes to the antics of Zimbabwe, I’m much more concerned about America’s emulation of their financial practices, which leads to hyperinflation. The Zimbabwean philosophy of printing more money to pay bills sounds eerily familiar. Who’s going to guard Geithner and Bernanke?
www.youtube.com/watch?v=mdZOQAcC61w