Key Takeaways
- • Clara Wu Tsai has directed the Social Justice Fund, formed in August 2020 when she and husband Joe Tsai pledged $50 million over 10 years to social justice and economic mobility initiatives prioritizing Brooklyn.
- • The fund plans a guaranteed income program for new mothers in Brownsville, according to the New York Times; the program's size and start date have not been publicly detailed.
- • Critics led by Brooklyn journalist Norman Oder say the fund's spending is hard to verify, citing IRS filings showing no grants and the absence of a full public accounting; the fund says 10% of its money goes to administrative costs.
- • The Liberty, valued at $600 million by Sportico versus the $10 million to $14 million the Tsais paid, won its first WNBA championship in 2024 under Wu Tsai's ownership.
- • The Tsais announced in late July that they are divorcing, but said ownership of the Nets and Liberty will not change.
Summary
Clara Wu Tsai, vice chair of Brooklyn Sports & Entertainment (BSE), which owns the Brooklyn Nets, the New York Liberty and operates Barclays Center, directs the Social Justice Fund. The fund was created in August 2020, amid racial justice protests outside Barclays Center, when Wu Tsai and her husband, Alibaba cofounder Joe Tsai, pledged $50 million over 10 years to social justice and economic mobility initiatives, prioritizing Brooklyn. Its stated mission is to address gaps in education, health and wealth across the borough.
According to the New York Times, as reported this month, some of the fund's money is earmarked for a guaranteed income program for new mothers in Brownsville, a neighborhood where poverty has long outpaced the citywide rate. Guaranteed income differs from universal basic income in that it provides regular, no-strings cash payments to a targeted group. New York City has previously tested the model, including a City Council pilot for expectant mothers run by the nonprofit Bridge Project. The fund has not publicly disclosed the Brownsville program's size or start date.
The fund's five-year impact summary lists several programs. The EXCELerate small-business loan program launched in 2021, and in March the fund joined the Asian American Foundation, Renaissance Economic Development Corp. and New York State on a $5.5 million small-business loan program. The BK-XL accelerator, built with Boston-based Visible Hands, invested more than $4 million in 17 startups led by founders of color, though the fund has since said it is shifting toward loans and grants. With NYC Parks, the fund says it renovated 12 basketball courts across four Brooklyn parks, as part of a roughly $2 million initiative. It also backs arts and music curriculums in public schools and hosts free events at Barclays Center.
The fund has faced scrutiny. Norman Oder, a Brooklyn journalist who has covered Barclays Center for two decades, reports that the Joe and Clara Tsai Foundation's IRS filings show no grants and that the fund does not publish a full accounting. The fund told Oder that 10% of its money goes to administrative costs. After Oder questioned the number of students reached by the Basquiat program, the fund revised the figure from 70,000 to 12,000. Oder also notes that the fund's homepage dropped the phrase "BIPOC communities in Brooklyn" in late 2024, a change that mirrors broader moves away from DEI language, though he found the people and programs supported have changed little. A fund spokesperson said the organization "is not a traditional philanthropic organization" and takes on early risk so other capital can follow.
The Tsais' investment in the Liberty has been substantial. They bought the team in January 2019 and moved it to Barclays Center the following season. Wu Tsai has said the franchise should be treated like the men's team, telling Vanity Fair: "We gave these women resources that match their talent." Investments include chartered flights in 2021, which drew a record $500,000 league fine, and an $80 million practice facility in Greenpoint slated to open in 2027, partly funded by a minority stake sale at a then-record $450 million valuation. Sportico now values the team at $600 million, and the Liberty won the WNBA championship in 2024. Wu Tsai has also said she wants the Liberty to become a billion-dollar franchise.
The couple, married since 1996, announced in late July that they are divorcing. They said the split will not change team ownership: Joe Tsai remains Nets governor and BSE chairman, and Clara Wu Tsai remains Liberty governor and BSE vice chair.
According to the New York Times, as reported this month, some of the fund's money is earmarked for a guaranteed income program for new mothers in Brownsville, a neighborhood where poverty has long outpaced the citywide rate. Guaranteed income differs from universal basic income in that it provides regular, no-strings cash payments to a targeted group. New York City has previously tested the model, including a City Council pilot for expectant mothers run by the nonprofit Bridge Project. The fund has not publicly disclosed the Brownsville program's size or start date.
The fund's five-year impact summary lists several programs. The EXCELerate small-business loan program launched in 2021, and in March the fund joined the Asian American Foundation, Renaissance Economic Development Corp. and New York State on a $5.5 million small-business loan program. The BK-XL accelerator, built with Boston-based Visible Hands, invested more than $4 million in 17 startups led by founders of color, though the fund has since said it is shifting toward loans and grants. With NYC Parks, the fund says it renovated 12 basketball courts across four Brooklyn parks, as part of a roughly $2 million initiative. It also backs arts and music curriculums in public schools and hosts free events at Barclays Center.
The fund has faced scrutiny. Norman Oder, a Brooklyn journalist who has covered Barclays Center for two decades, reports that the Joe and Clara Tsai Foundation's IRS filings show no grants and that the fund does not publish a full accounting. The fund told Oder that 10% of its money goes to administrative costs. After Oder questioned the number of students reached by the Basquiat program, the fund revised the figure from 70,000 to 12,000. Oder also notes that the fund's homepage dropped the phrase "BIPOC communities in Brooklyn" in late 2024, a change that mirrors broader moves away from DEI language, though he found the people and programs supported have changed little. A fund spokesperson said the organization "is not a traditional philanthropic organization" and takes on early risk so other capital can follow.
The Tsais' investment in the Liberty has been substantial. They bought the team in January 2019 and moved it to Barclays Center the following season. Wu Tsai has said the franchise should be treated like the men's team, telling Vanity Fair: "We gave these women resources that match their talent." Investments include chartered flights in 2021, which drew a record $500,000 league fine, and an $80 million practice facility in Greenpoint slated to open in 2027, partly funded by a minority stake sale at a then-record $450 million valuation. Sportico now values the team at $600 million, and the Liberty won the WNBA championship in 2024. Wu Tsai has also said she wants the Liberty to become a billion-dollar franchise.
The couple, married since 1996, announced in late July that they are divorcing. They said the split will not change team ownership: Joe Tsai remains Nets governor and BSE chairman, and Clara Wu Tsai remains Liberty governor and BSE vice chair.
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