According to a report in the Atlantic Yards/Pacific Park Report, Ratner's parent company -- Forest City Ratner -- has until August 12 to pay Prokhorov more than $25 million in outstanding debt, and $6.3 million to cover current team losses. If Ratner doesn't, his 20 percent stake in the team could be significantly reduced.
The report says that Ratner owes Prokhorov the money for failing to cover any losses the Nets have incurred since moving to Brooklyn. The deadline has been extended once already.
Last year, Ratner explored selling his 20 percent stake in the team. When he couldn't find a suitor, he put his portion of Barclays Center on the market. Prokhorov was rumored to have interest in both.
Ratner is certainly a busy man these days. He officially made his first lease payment to Nassau County on the soon-to-be redeveloped Coliseum on Monday, and now he finds himself in this predicament. If I'm reading this situation properly, it appears this is Prokhorov's avenue to acquire more of the team at a reduced cost. If we take Forbes' recent valuation of $1.5 billion, Ratner's share of the team would be worth $300 million. That's a pretty penny, but maybe Prokhorov could finally be ready to leverage this debt against Ratner to buy his share out for far less.
It's worth noting that Ratner and Prokhorov have a few business ventures together, so this could be an interesting dynamic to watch play out. And though it doesn't appear to be poised to change much as far as basketball operations, any alteration is ownership is always worth heeding with some caution.