When Joe Tsai and Ollie Weisberg Invested in the Brooklyn Nets
When Joe Tsai bought a 49% stake in the Brooklyn Nets in 2017, he and his longtime investment partner, Ollie Weisberg, recognized the potential in the NBA's limited team supply and the growing market for live sports, particularly in Brooklyn.
Tsai and Weisberg's Investment Strategy
Weisberg, a Harvard graduate with a background in international development economics and Chinese, believed in the financial potential of sports as an asset class. He stated, "We think it’s a phenomenal financial investment. Live sports is extremely unique. Live sports bring people together."
After working at Goldman Sachs and Citadel, Weisberg reunited with Tsai to establish Blue Pool Capital. When Tsai acquired the Nets, Weisberg joined him as a minority owner and vice chair of Brooklyn Sports & Entertainment.
Their investment strategy focused on the growing trend of over-the-top media distribution (OTT) and the limited supply of NBA teams. They saw Brooklyn as a rapidly growing market, having shifted the team's location from New Jersey to Brooklyn in 2012.
"We believed that Brooklyn is a massively growing part of New York City. We actually bought the team from Mikhail Prokhorov in two tranches. It allowed us to wade in as a minority shareholder at 49% and then ultimately take control." - Ollie Weisberg
Enhancing the Franchise
Weisberg and Tsai aimed to improve the Nets franchise both on and off the court using their business expertise. They invested in the team's product, enhancing the fan experience with better food, wine, venues, and club spaces, which increased revenue and team value.
The investment has paid off, with the Nets' value more than doubling since 2019, reaching an estimated $7.4 billion this year. The Liberty, the WNBA team under their ownership, also saw its valuation soar, surpassing $600 million.
In 2024, they sold a minority stake in Brooklyn Sports & Entertainment to Julia Koch and her family while Tsai remained chairman and Weisberg became an alternate governor, emphasizing their commitment to the long-term growth of the Nets.