Brooklyn Nets owner Mikhail Prokhorov, with hopes of winning a $1 billion valuation for his team, has agreed to end his free-spending ways, The Post has learned.

The 49-year-old Russian billionaire feared the red ink spilled by the team — in large part because of his history of deficit spending — would discourage some potential bidders from forking over enough cash for Bruce Ratner’s minority stake to gain the 10-figure value, sources said.

Ratner’s Forest City Enterprises announced earlier this year it would sell its 20 percent stake in the Nets.

It needs to get $200 million for the team to hit Prokhorov’s target.

The $1 billion valuation would be only half of what former Microsoft Chief Executive Steve Ballmer just agreed to pay for the LA Clippers.

The Clippers, though, are profitable and the Nets are far from it. Also, there is a roughly 20 percent discount when selling minority stakes, sources said.

“If it were a control sale, I think you could get $1 billion easily,” a potential suitor said. “This [minority-stake evaluation] is a little tough.”

Suitors are concerned they not only would need to invest $200 million, but then cover their share of any losses, which last year stretched to about $50 million, sources said.

Last year, the NBA hit the Nets with a luxury tax bill of more than $90 million after the Prokhorov-run team spent $102 million on payroll, well over the $72 million maximum allowed before incurring penalties.

Despite leading the league in payroll, the Nets barely made it past the Toronto Raptors in the first round and lost in five games to the Miami Heat in the second.