Wednesday, February 28, 2007

Nets for sale? Document suggests cash flow stops in 2013

Could the Nets be for sale after the Atlantic Yards project is under way? There's certainly a hint of that in the Combined Returns Summary prepared by Forest City Ratner and released by the Empire State Development Corporation. The document estimates cash flow and investment internal rate of return starting in 2004 for both the "Team and Arena Investment" and also the "Real Estate Investment."

The "Team and Arena Investment" ends in 2013. (Click to enlarge.) The "Real Estate Investment" ends in 2015. Could the Nets be on the block before the project is completed? (The scheduled completion date is 2016, but even project landscape architect Laurie Olin admits it could take 20 years.)

I wrote last year about a clause in the General Project Plan that allowed for the sale of the Nets before the completion of the arena.

Now this may just be a separate accounting line, given that the document is "for discussion purposes only." And there's no particular reason they'd sell the Nets then. But this document, for many reasons, deserves more explanation.

No comments:

Post a Comment