Oct 21, 2013, 10:25 PM EDT
It’s a little tough to judge the financials of the Barclay Center on its own — buildings tend to have much higher expenses the first year (marketing is higher, for example) plus the real purpose of the arena is to anchor a full scale commercial and residential development around it. The Atlantic Yards is what can make the developers — which now includes Nets owner Mikhail Prokhorov — money in the long run.
Still, in the short run the arena is not doing as well as expected.
Eliot Brown of the Journal writes that the arena will produce about $26 million in operating income in its first year, 2/3rds of the $76 million projected … and less than what the arena has to pay out to its bondholders.
Forest City Enterprises which owns 55 percent of the arena operating company attributes the shortfall to the opening costs, “to make a big splash in the first year, investing heavily in marketing, customer service and securing top acts,” writes Brown. Indeed, the arena has been the nation’s top grossing venue for concerts and family shows through the first three quarters of year one … and second in the world.
This will have no impact on the Nets — they are the star tenant of that building and Prokhorov is showing he is willing to spend on them.
He gets the big picture, that he’s going to make his money on the real estate end of this deal once the residential/commercial area of the Atlantic Yards takes off. The Nets are part of what makes that area attractive. He can afford a few losses along the way to get it up and running.
Oct 23, 2014, 2:22 AM EDT
The Knicks still run some isolation.
Kobe Bryant on Julius Randle playing with Kobe, for Byron Scott: ‘If you f— this up, you’re a really big idiot’
Oct 23, 2014, 12:15 AM EDT
Lakers star likes dropping I bombs
Oct 22, 2014, 11:15 PM EDT
No charges have been filed.
Oct 22, 2014, 10:20 PM EDT
J Crossover up close and personal.
Oct 22, 2014, 9:20 PM EDT
Rockets downgraded Parsons, but he’ll have a chance to reach new heights with Mavericks
Oct 22, 2014, 8:20 PM EDT
Lakers forward also says he’s quit drinking alcohol
Oct 22, 2014, 7:20 PM EDT
Stephen Curry takes advantage
Oct 22, 2014, 6:21 PM EDT
Phil Jackson has spoken to the media more than the previous three GMs ever did, I think.
Oct 22, 2014, 5:16 PM EDT
“ We still have roughly a third of our teams that are not profitable under the current system, despite revenue sharing.” —Adam Silver
Oct 22, 2014, 4:30 PM EDT
Oddest vote of the survey — 10.7 percent of GMs thought Chicago had a better offseason than Cleveland.
Jeff Van Gundy: Confusing a system (like the Triangle Offense) with reason for success is ‘a huge mistake’
Oct 22, 2014, 3:42 PM EDT
Van Gundy says players are responsible for wins and losses, not systems — like the one Phil Jackson is bringing to the Knicks this season.
Oct 22, 2014, 2:58 PM EDT
This could be the year a big man breaks the string of guards winning the award.
Oct 22, 2014, 2:13 PM EDT
Pierce played 15 years for the Celtics, but is now with his second new team in as many seasons with the Wizards.
Oct 22, 2014, 1:29 PM EDT
Boston is hoping to get an asset in return for Bynum instead of simply waiving him.
Oct 22, 2014, 12:48 PM EDT
Oct 22, 2014, 12:04 PM EDT
There are plenty more interesting tidbits in the league’s annual survey.
Oct 22, 2014, 11:23 AM EDT
It may come up again, but for one more season at least Philadelphia’s uber-tanking system will pay dividends.
Oct 22, 2014, 10:45 AM EDT
In addition to losing its two best playmakers in the offseason. Indiana has struggled with injuries.
Oct 22, 2014, 10:00 AM EDT
This is a team where winning 50 games and exiting in the first round would feel like a big disappointment.
Oct 22, 2014, 9:30 AM EDT
Inadvertent collision resulted in Kaman needing stitches in the back of his head.
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- Owners vote down NBA Draft lottery reform, system to stay same for this season 42
- ProBasketballTalk 2014-15 preview: Houston Rockets 23
- Kobe Bryant responds to ESPN article with basically a shrug (VIDEO) 19
- Paul George refutes report he didn’t want to play with Kobe Bryant: ‘Media reaching again’ 22
- PBT Extra preview: Lakers, Celtics big name teams headed to lottery 12
- Could lottery reform be bad for small market teams? Sam Presti argues yes. 23