Congressman Blows Whistle on Nets Sale

NEW YORK CITY-The sale of the Nets basketball franchise, and the team’s move to the centerpiece arena planned for Forest City Ratner Cos.’ Atlantic Yards development in Brooklyn, hit a roadblock this weekend as a New Jersey congressman called for an investigation of Russian billionaire Mikhail Prokhorov’s business dealings in Zimbabwe. Prokhorov, who would become a major investor in Atlantic Yards under an agreement announced this past September, may have run afoul of US trade sanctions against Zimbabwe, the New York Post reported Sunday.

On Monday, the Post reported that Rep. Bill Pascrell (D-NJ) was sending a letter to Treasury Secretary Timothy Geithner asking for an investigation into Onexim, the Prokhorov-controlled fund. Two years ago, Onexim became a 50% owner of Renaissance Capital, which has invested in Zimbabwe since 2007. Renaissance has interests in the Zimbabwean stock exchange, banks, a cellphone company, mining and a private big-game reserve, according to Sunday’s Post article.

“This is disgusting,” Pascrell told the Post. “Obviously, the board of governors of the NBA didn’t do their job properly when they vetted this deal.”

Last week, the NBA board said it would postpone a vote giving final approval to Prokhorov’s $200-million deal to acquire the Nets and move them to Atlantic Yards’ Barclays Center arena. The delay in voting was due to the fact that New York State has not yet taken possession of all of the land for the arena.

To read the complete Post story, click here.