AUSTIN, Texas — New York City Nets owner and CEO Brett Brown resigned Monday from the board of a major Texas company after it was revealed that he had been paid more than $1 million by a hedge fund that owns his sports team.
The hedge fund, Renaissance Technologies, which owns the Nets, also has stakes in the New York Knicks, the Houston Rockets and the New Orleans Pelicans.
Brown, who joined the Nets in March after a stint with the Sacramento Kings, was paid more then $1.6 million by Renaissance Technologies in 2012, according to a statement from the firm that oversees the Brooklyn Nets.
The statement did not provide a breakdown of the payouts.
The statement did say Brown had been “present and participating in the day-to-day operations of the company for over a decade.”
Brown had been a member of the board for a total of 20 years, the statement said.
He was not named in the statement, and it did not say if he would continue to serve on the board.
Brown’s departure came after the Brooklyn organization announced a $1 billion plan to build a new arena for the team, which will be built on the former site of the old Nassau Coliseum.
The new arena is set to be open in 2023, but the arena plan was postponed because of the ongoing lockout.
The Brooklyn Nets, who play in the NBA’s Eastern Conference, have won nine of the last 11 NBA championships, but have not won a championship since 2004.
Brown is a New York native who grew up in Houston.
He began his career in Houston, where he was an assistant coach for the Houston Oilers.
Brown had worked as an assistant with the Houston Astros in the 1980s and ’90s.
He became the team’s head coach in 1999 and was named the team coach in 2002.