Bloomberg Businessweek January 27, 202043J
oe Tsai was in his study in Hong Kong when he
heard about the tweet. On a Saturday afternoon in
early October, less than a month into Tsai’s tenure
as majority owner of the Brooklyn Nets, someone from the
NBA called with the news. “He walked me through what hap-
pened and said this could become a troublesome thing,” Tsai
says.Earlierthatday,DarylMorey,generalmanagerofthe
HoustonRockets,widelyregardedasoneoftheleague’smost
forward-thinking executives, had tweeted the slogan “Fight
for Freedom / Stand With Hong Kong.” It was a show of soli-
darity with protesters who’d been in the streets of the former
British territory for four months, opposing what they saw as
China’s attempts to stamp out their freedom.
By the time of the call, Morey had deleted the tweet, but
it was still sparking outrage on the mainland. “I was sitting
there thinking, I’m uniquely positioned to say something. It
wouldbeweirdif I didn’tsaysomething,”Tsairecalls.“Iam
theonlyownerthat’sChinese.I dobusinessinChina.I livein
HongKong.I’msortofinthemiddleofthis.”
Tsai,co-founderandexecutivevicechairmanofChinese
e-commercegiantAlibabaGroupHoldingLtd.,isfinishing
uplunchinhisotherwise-empty luxury suite above mid-
court of the Barclays Center in Brooklyn, dressed in khakis,
tortoiseshell glasses, and a black Nets half-zip fleece. Tipoff
for a Sunday afternoon game against the Miami Heat is in
two hours, and sneakers squeak as players warm up on the
court below. The 56-year-old Tsai is worth more than $12 bil-
lion, according to Bloomberg estimates. A lifelong lover of
sports, he casts his ownership portfolio as largely accidental.
People come to him with teams. His holdings also include the
WNBA’s New York Liberty and the National Lacrosse League’s
San Diego Seals, as well as stakes in Major League Soccer’s
Los Angeles FC and an e-sports franchise. The Seals play near
the seaside home where Tsai’s wife, Clara, and their three
children spend much of the year.
When representatives of the Nets’ previous owner,
Russian mining magnate Mikhail Prokhorov, called in 2017
to say the team was for sale, Tsai investigated the NBA’s eco-
nomic fundamentals. “We had several long conversations,”
says NBA Commissioner Adam Silver. “I came away incredi-
bly impressed.” Tsai also liked what he saw. The league splits
revenue roughly evenly between players and owners, as well
as among teams, regardless of market size or wins and losses.
“It’s kind of a socialist setup,” Tsai says. “Basically all 30
teams get to make money.” He ended up buying the Nets in
two stages, acquiring the first 49% in 2017 and the remain-
der, along with the arena, last September. He paid about
$3.5 billion, all told. “NBA teams are not going to lose asset
value,” Tsai says. “It’s like owning a penthouse apartment
on Park Avenue.”
The Nets were rebuilding under a new general manager,
Sean Marks, when Tsai bought his first stake. Still reeling from
a disastrous trade that had sent four years’ worth of first-round
draft picks to the Boston Celtics, they’d finished last the sea-
son before. Marks set about unloading costly veterans andand
Brooklyn
BY IRA BOUDWAY
PHOTOGRAPH BY
AMY LOMBARD