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.
Dec 25, 2014, 10:16 PM EST
Dec 25, 2014, 9:24 PM EST
Bryant misses his second straight game simply due to a need for rest.
Dec 25, 2014, 6:46 PM EST
With Kevin Durant out, Westbrook puts Oklahoma City on his back, elevates Steven Adams and helps produce 114-106 victory
Dec 25, 2014, 6:10 PM EST
Scott Brooks: Kevin Durant ‘could not go if he wanted to go’
Dec 25, 2014, 4:15 PM EST
Washington was never threatened after the first quarter.
Dec 25, 2014, 2:46 PM EST
A multiple game suspension is following.
Dec 25, 2014, 2:00 PM EST
Well, it’s a pretty easy goal to reach.
Dec 25, 2014, 12:30 PM EST
Kevin Durant would not start as of right now, but expect that to change once he starts playing again.
Dec 25, 2014, 11:00 AM EST
Howard and Smith were AAU teammates.
PBT Christmas Day preview: Late game between Clippers and Warriors will see league’s best rivalry renewed
Dec 25, 2014, 9:30 AM EST
These teams do not like each other.
Dec 25, 2014, 8:00 AM EST
And at No. 1… come on, isn’t it pretty obvious?
Dec 25, 2014, 2:13 AM EST
This will be his fourth game missed with a sprained ankle, they are 1-2 without him the last three.
Dec 24, 2014, 11:00 PM EST
The Wizards are an underrated team in the East. The Knicks… not so much.
Dec 24, 2014, 9:30 PM EST
Previewing the Bulls vs. Lakers matchup at the United Center.
Dec 24, 2014, 9:00 PM EST
Colorways inspired by shoes Michael Jordan wore during his best Christmas Day performance.
Spurs and Thunder, who’ve been best in the West lately, both fighting for position entering Christmas matchup
Dec 24, 2014, 7:00 PM EST
Injuries to Kevin Durant, Russell Westbrook and Kawhi Leonard have put both teams behind the eight ball
Dec 24, 2014, 6:06 PM EST
An additional confirmation that no Deron Williams deal gets done on Sacramento’s side unless they can also get the talented young big man as part of the package.
Dec 24, 2014, 5:30 PM EST
Young says Lakers played liked ‘Django Unchained’ without Kobe Bryant
Dec 24, 2014, 4:00 PM EST
Boston has Brandan Wright, large trade exception
Dec 24, 2014, 3:00 PM EST
The NBA has given us some good presents to open for Christmas.
- Russell Westbrook inspires Thunder to skid-stopping win over Spurs 6
- LeBron James, Stephen Curry leading in early All-Star voting returns 16
- PBT Christmas Day preview: Late game between Clippers and Warriors will see league’s best rivalry renewed 1
- PBT Extra: Top 5 NBA stories of 2014 0
- Five things to watch as NBA takes over Christmas Day 16
- Cavaliers center Anderson Varejao tears Achilles, done for season 30
- Miami Heat fans were hurt when LeBron left, they may let him hear it. Somewhat. 24
- Nikola Vucevic and Tobias Harris coming into their own for Magic 6