Vaughn was in his seventh season as an assistant coach with the team when he took over on a seemingly temporary basis November 1 after the Nets fired Steve Nash following a disappointing 2-5 start to the season.
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The hiring ends widespread speculation that Brooklyn was in talks to hire suspended Boston Celtics coach Ime Udoka.
Vaughn takes over a Nets team still reeling from Kyrie Irving's five game suspension after the star point guard shared an antisemitic documentary on Twitter.
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