Joe Tsai Discusses ‘Final Payoff’ of Nets Ownership, Barclays Center's Value

Team governor Joe Tsai spoke about the Brooklyn Nets and other topics at CNBC’s ‘CONVERGE’ thought leadership event in Singapore.

Feb 7, 2023; Brooklyn, New York, USA; Brooklyn Nets owner Joe Tsai looks on during the first half of the game between the Nets and the Phoenix Suns at Barclays Center. Mandatory Credit: Vincent Carchietta-Imagn Images / Vincent Carchietta-Imagn Images

Brooklyn Nets governor Joe Tsai appeared at CNBC’s ‘CONVERGE’ thought leadership event to discuss his ownership of the team, the importance of Barclays Center and a variety of issues related to the future of sports and society.

“For a sports owner, the return season after season is [...] you’re trying to win the championship, so you want to win games,” Tsai said. “You’re not looking at the income statement of the team from season-to-season, so I guess the final payoff for me is less financial — even though the financial aspects are important, I have to make sure that the bottom line investment can make sense — but at the end of the day, it’s through the love of sports. I have a passion for sports.”

Tsai became the Nets’ principal owner in 2019 after initially purchasing 49% of the team. In sports, he is also the owner of the WNBA’s New York Liberty and the National Lacrosse League’s San Diego Seals and Las Vegas Desert Dogs. Outside of athletics, he is the chairman of Alibaba.

The 61-year-old explained the financial and commercial principles behind his investments. Tsai wants to invest in leagues where the best teams in the world play, such as the NBA or the NFL. He is also attentive to the leagues’ media values and to their audiences on streaming and linear television. 

Tsai said that he knew that NBA and NFL teams “all look expensive,” but that they had a lot of “upside” due to their sports’ global viewership. He touched on the NBA’s new media rights deal, which is set to kick in next season and is reportedly worth $76 billion over 11 years. 

The Barclays Center was also a topic of discussion for Tsai for reasons that go beyond basketball. There is a lot of value in controlling a team’s arena and property, as CNBC senior sports reporter Mike Ohanian told Nets On SI in February.

Tsai explained: “Most nights, we have concerts. We’re generating revenue from renting out the space to artists, and that’s a great business. In fact, Barclays Center in the last year is considered, according to the objective metrics, one of the top three [or] four venues in the world [...] in terms of concerts.” 

The Nets’ governor recently bought a 3% stake in the Miami Dolphins for around $200 million. Tsai, who played varsity football at The Lawrenceville School in New Jersey, said that the opportunity came up when Dolphins team owner Stephen M. Ross wanted to sell a minority stake. Tsai sees himself as a guest with an economic stake in the team, rather than as an owner. 

Part of the decision also involved Hard Rock Stadium, the Miami Open tennis tournament, and the Miami Grand Prix — “a collection of great assets under one roof.” But, Tsai advised, there is more value in owning a franchise compared to property.

“In terms of real estate, your upside is kind of limited,” he said. “You’re collecting rent. [With] teams, the [intellectual property] value will continue to rise as long as you can continue to build a fanbase.”

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