Oct 21, 2013, 10:25 PM EST
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.
Feb 28, 2015, 6:30 PM EST
Tom Thibodeau says Rose’s rehab plan is already mapped out.
Feb 28, 2015, 4:47 PM EST
Westbrook suffered the injury last night against the Blazers.
Feb 28, 2015, 4:00 PM EST
Rockets general manager says he recommended trading ‘everything’ for Harden in 2012
Feb 28, 2015, 2:30 PM EST
What else would he say?
Feb 28, 2015, 1:00 PM EST
He was beloved by former teammates.
Feb 28, 2015, 11:30 AM EST
He was evaluated by doctors after the game Friday.
Feb 28, 2015, 10:33 AM EST
He had been in the hospital for weeks following multiple heart attacks.
Feb 28, 2015, 9:30 AM EST
The Knicks got the double OT win in Detroit, this shot was key.
Feb 28, 2015, 8:00 AM EST
Westbrook is averaging a triple-double over his last five games.
Feb 28, 2015, 1:02 AM EST
To quote Bob Uecker, “juuuuust a bit outside.”
Feb 27, 2015, 11:00 PM EST
There is about as much chance of me getting a date with Emily Ratajkowski this weekend as there is of this actually happening.
Shane Battier on Carmelo Anthony: ‘Last two years I guarded him, he did exactly what the scouting report said he would’
Feb 27, 2015, 10:00 PM EST
Maybe, but Melo still dropped 50 on Battier’s Heat in 2013.
Feb 27, 2015, 9:00 PM EST
NBA teams are considering the question
Daryl Morey believes two bad shots are better than one good shot (always), but data wasn’t significant enough for Jeff Van Gundy to change
Feb 27, 2015, 7:59 PM EST
An interesting anecdote from Morey (speaking at the MIT Sloan Sports Analytics Conference) about how the data showed an advantage, but not one big enough for his coach to change.
Feb 27, 2015, 6:59 PM EST
Instead of 30-year plan, assistant Celtics general manager unveils five-year and 10-year plans
Feb 27, 2015, 6:07 PM EST
Kevin Love, it’s your show.
Feb 27, 2015, 5:30 PM EST
There are financial obstacles in the way of dropping 22 games from the schedule, but Battier makes a somewhat compelling case.
Feb 27, 2015, 4:56 PM EST
He’s day to day. (Insert your Keith Olberman joke here.)
Feb 27, 2015, 4:30 PM EST
It’s not going to change most fans’ minds, but it’s a good first step.
Feb 27, 2015, 3:45 PM EST
Don’t be surprised if another bidder comes in over the top.
- Russell Westbrook undergoes procedure to address cheek fracture, will be re-evaluated next week 2
- Russell Westbrook takes knee to face, it leaves dent (VIDEO) 14
- Former All-Star, popular Knick Anthony Mason dies at age 48 12
- Russell Westbrook posts third straight triple-double, Thunder lose anyway 6
- Shane Battier: ‘I think a 60-game season would be perfect’ 15
- Kyrie Irving has strained left shoulder, out Friday vs. Pacers 0
- Derrick Rose expected to return in 4-6 weeks. In time for playoffs. 20
- Five Things We Learned in NBA Thursday: The Cavaliers we expected have arrived 17