Skip to content

Report: Barclays Center not making nearly as much money as expected

Oct 21, 2013, 10:25 PM EST

Philadelphia 76ers v Brooklyn Nets Getty Images

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.

That’s the report from the Wall Street Journal, with Nets Daily providing some detail for us.

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.

Latest Posts
  1. Five Things We Learned in NBA Wednesday: Is this rock bottom for Oklahoma City?

    Jan 29, 2015, 1:29 AM EST

    Carmelo Anthony, Russell Westbrook AP

    The Sixers, Knicks and Timberwolves win on the same day? Isn’t that one of the signs of the apocalypse?

  2. Hornets’ Kemba Walker has successful knee surgery, expected to miss a minimum of 6 weeks

    Jan 29, 2015, 12:01 AM EST

    New Orleans Pelicans v Charlotte Hornets Getty Images

    The good news is that Walker may return in as little as six weeks, which means Charlotte’s playoff chances should remain intact.

  3. George Gervin on Klay Thompson’s 37-point quarter: ‘I don’t feel he broke my record’

    Jan 28, 2015, 11:15 PM EST

    NBA All-Star Jam Session 2014 Getty Images

    The Hall of Famer held the previous record with 33 points in a period, but did so before the three-point line was implemented.

  4. NBA says Matt Barnes’ $25K fine had nothing to do with Suns owner Robert Sarver

    Jan 28, 2015, 8:50 PM EST

    Los Angeles Clippers v Phoenix Suns Getty Images

    Barnes immediately played the victim card after receiving the fine, but the NBA (and the video) say otherwise.

  5. Phil Jackson denies illegally deflating basketballs while playing for the Knicks

    Jan 28, 2015, 7:50 PM EST

    Phil Jackson, James Dolan, executive chairman of the Madison Square Garden Company AP

    “Softer but not illegal,” Jackson attempted to clarify.

  6. LeBron James out Wednesday vs. Blazers with wrist injury

    Jan 28, 2015, 7:00 PM EST

    Cleveland Cavaliers v Golden State Warriors Getty Images

    Cleveland is just 1-8 without LeBron in the lineup this season.

  7. Kobe Bryant expected to be ready for start of 2015-16 season after undergoing successful shoulder surgery

    Jan 28, 2015, 6:37 PM EST

    Phoenix Suns v Los Angeles Lakers Getty Images

    Bryant will miss the remainder of the current season, and is expected to be sidelined for nine months.

  8. J.R. Smith says he’s playing better in Cleveland because there’s less partying

    Jan 28, 2015, 6:13 PM EST

    Cleveland Cavaliers v Detroit Pistons Getty Images

    One may have to work a little harder to find the late night parties in Cleveland.

  9. Bucks sign Jorge Gutierrez to 10-day contract

    Jan 28, 2015, 5:30 PM EST

    Jason Kidd AP

    Larry Sanders’ suspension allows Milwaukee to add 16th player

  10. Tayshaun Prince: “Obviously I want to be in a winning situation”

    Jan 28, 2015, 4:45 PM EST

    Boston Celtics v Denver Nuggets Getty Images

    He is likely bought out if the Celtics can’t find a trade partner.

  11. Nets doctor expects Mirza Teletovic to make full recovery

    Jan 28, 2015, 1:55 PM EST

    Washington Wizards v Brooklyn Nets Getty Images

    Teletovic being released from hospital today

  12. Phil Jackson once admitted championship Knicks deflated balls

    Jan 28, 2015, 1:17 PM EST

    Jackson AP

    Jackson said breaking rule gave New York an edge due to team’s style of play

  13. Kevin Durant out against Knicks

    Jan 28, 2015, 12:42 PM EST

    Oklahoma City Thunder v New York Knicks Getty Images

    Thunder remain heavy favorites

  14. Report: Terrence Ross riding bench in Toronto but will not be traded

    Jan 28, 2015, 12:05 PM EST

    Philadelphia 76ers V Toronto Raptors Getty Images

    The Raptors are trying to be patient and tap into his potential.

Featured video

Who should be All-Star Game reserves?
Top 10 NBA Player Searches
  1. K. Bryant (7103)
  2. H. Whiteside (6845)
  3. R. Rubio (6759)
  4. C. Anthony (6736)
  5. K. Martin (6579)
  1. D. Howard (6553)
  2. N. Batum (6345)
  3. K. Walker (6124)
  4. T. Jones (5786)
  5. D. Wade (5454)