Skip to main content

Nets layoffs point to lean times; with fewer front-office staff, it will be harder to reap sponsorships

Nets coach Lawrence Frank has done a reasonably good job developing young talent, but other coaches with his mixed record get the boot.

So, will team officials Wednesday announce Frank's departure, with one year left on his contract? One reason he might stay, according to the Daily News's Julian Garcia: the team doesn't want to pay him $4.5 million next year not to coach, given losses topping $30 million.

Effort at savings

Al Iannazzone reports on the money factor:
There have been a few waves of layoffs in the Nets' offices. About 10 were let go from midweek on. Also, the Nets won't have a summer league team, per se. They're joining forces with the Sixers for summer league to help split the costs.

And insider NetIncome (aka Bobbo) offers some details I haven't seen elsewhere:
This franchise has a lot bigger problems than the coach. When you fire 10 people, including some very high priced marketing, sales, and sponsorship people, and are looking at an uncertain future in Brooklyn–or new ownership–it signals a real instability in the franchise.

I truly wouldn’t be surprised if next season was the Nets’ last in New Jersey or New York.


NI/Bobbo has supported the Brooklyn move vociferously, contentiously, and sometimes misleadingly, in part because he doesn't think the Nets have a future in New Jersey and doesn't want to lose the team. But this is the first time I've noticed such pessimism.

Indeed, if the Nets are firing people working on sponsorships, that's going to make it harder to a sign those additional sponsors they need for the increasingly-distant Barclays Center.

Comments

  1. I posted a comment here yesterday under the frank gehry story, but it never appeared on the webpage.

    The comment was regarding the nets layoffs and also the pending arena management deal between the new jersey sports & exposition authority and the pru center in newark.

    My comment was off-topic only because you had yet to post the layoff story.

    I would appreciate a response here or @ my email address.

    ReplyDelete
  2. Net Income/Bobbo/DoctorPhil/etc... keeps raising the red herring about the nets moving to seattle/kansas city/st louis/las vegas/etc... when the brooklyn move is finally pulled off life-support.

    This is complete and utter nonsense. In 25 years as nba commissioner, david stern has NEVER ONCE suggested or even hinted at the possibility of the nets leaving the metro-ny area.

    Stern has repeatedly talked about the nets relocating WITHIN the metro-ny area, but he has never once talked about them leaving the metro-ny area altogether.

    The reason is obvious: the metro-ny area has about 10 times the residential and business population of the typical nba/nfl/nhl/mlb market.

    MLB and the nfl each have 2 franchises here. The nhl has 3 franchises here. There isn't a snowball's chance in hell that the nba will only have 1 franchise here.

    The 29 other nba franchise owners aren't going to let the knicks have the entire metro-ny market all to themselves, especially since so many of those franchises would love to relocate here themselves.

    ReplyDelete
  3. I reserve the right to post comments or not.

    Off-topic comments can be sent to my email address.

    ReplyDelete
  4. That's fair enough. Just wanted to know the reason why my comment wasn't approved. Thanks for the response.

    ReplyDelete
  5. Regarding whether or not the nets can thrive in nj, specifically newark, nj.

    The answer is a resounding YES THEY CAN!!!!!

    For proof, look no further than the nj devils' financial success since moving from east rutherford to newark (see forbes.com annual review of the finances of nhl franchises).

    In their final season in east rutherford (2006-07), the devils lost $15 million, placing them 30th and dead-last in the league in profits/losses. The following season in newark(2007-08), the devils earned a $2 million profit, placing them 13th in the league in profits/losses.

    From 2006-07 to 2007-08, the devils jumped from 28th to 8th in the league in total revenues.

    Among the 24 nhl franchises in the u.s.(6 are in canada), the devils ranked 4th in ticket sales for 2007-08.

    The devils are clearly thriving in newark, even though hockey is not an urban sport, and even though the nation's economic climate has been very unfavorable.

    With basketball being the ultimate city sport and the nation's economy eventually recovering, the nets would enjoy even greater financial success in newark than the devils have.

    ReplyDelete
  6. Bobbo should sign his name as Bob Windrem.

    ReplyDelete

Post a Comment

Popular posts from this blog

Forest City acknowledges unspecified delays in Pacific Park, cites $300 million "impairment" in project value; what about affordable housing pledge?

Updated Monday Nov. 7 am: Note follow-up coverage of stock price drop and investor conference call and pending questions.

Pacific Park Brooklyn is seriously delayed, Forest City Realty Trust said yesterday in a news release, which further acknowledged that the project has caused a $300 million impairment, or write-down of the asset, as the expected revenues no longer exceed the carrying cost.

The Cleveland-based developer, parent of Brooklyn-based Forest City Ratner, which is a 30% investor in Pacific Park along with 70% partner/overseer Greenland USA, blamed the "significant impairment" on an oversupply of market-rate apartments, the uncertain fate of the 421-a tax break, and a continued increase in construction costs.

While the delay essentially confirms the obvious, given that two major buildings have not launched despite plans to do so, it raises significant questions about the future of the project, including:
if market-rate construction is delayed, will the affordable h…

Revising official figures, new report reveals Nets averaged just 11,622 home fans last season, Islanders drew 11,200 (and have option to leave in 2018)

The Brooklyn Nets drew an average of only 11,622 fans per home game in their most recent (and lousy) season, more than 23% below the announced official attendance figure, and little more than 65% of the Barclays Center's capacity.

The New York Islanders also drew some 19.4% below announced attendance, or 11,200 fans per home game.

The surprising numbers were disclosed in a consultant's report attached to the Preliminary Official Statement for the refinancing of some $462 million in tax-exempt bonds for the Barclays Center (plus another $20 million in taxable bonds). The refinancing should lower costs to Mikhail Prokhorov, owner of the arena operating company, by and average of $3.4 million a year through 2044 in paying off arena construction.

According to official figures, the Brooklyn Nets attendance averaged 17,187 in the debut season, 2012-13, 17,251 in 2013-14, 17,037 in 2014-15, and 15,125 in the most recent season, 2015-16. For hoops, the arena holds 17,732.

But official…

Is Barclays Center dumping the Islanders, or are they renegotiating? Evidence varies (bond doc, cash receipts); NHL attendance biggest variable

The Internet has been abuzz since Bloomberg's Scott Soshnick reported 1/30/17, using an overly conclusory headline, that Brooklyn’s Barclays Center Is Dumping the Islanders.

That would end an unusual arrangement in which the arena agrees to pay the team a fixed sum (minus certain expenses), in exchange for keeping tickets, suite, and sponsorship revenue.

The arena would earn more without the hockey team, according to Bloomberg, which cited “a financial projection shared with potential investors showed the Islanders won’t contribute any revenue after the 2018-19 season--a clear signal that the team won’t play there, the people said."

That "signal," however, is hardly definitive, as are the media leaks about a prospective new arena in Queens, as shown in the screenshot below from Newsday. Both sides are surely pushing for advantage, if not bluffing.

Consider: the arena and the Islanders can't even formally begin their opt-out talks until after this season. The disc…

Skanska says it "expected to assemble a properly designed modular building, not engage in an iterative R&D experiment"

On 12/10/16, I noted that FastCo.Design's Prefab's Moment of Reckoning article dialed back the gush on the 461 Dean modular tower compared to the publication's previous coverage.

Still, I noted that the article relied on developer Forest City Ratner and architect SHoP to put the best possible spin on what was clearly a failure. From the article: At the project's outset, it took the factory (managed by Skanska at the time) two to three weeks to build a module. By the end, under FCRC's management, the builders cut that down to six days. "The project took a little longer than expected and cost a little bit more than expected because we started the project with the wrong contractor," [Forest City's Adam] Greene says.Skanska jabs back
Well, Forest City's estranged partner Skanska later weighed in--not sure whether they weren't asked or just missed a deadline--and their article was updated 12/13/16. Here's Skanska's statement, which shows th…

Not just logistics: bypassing Brooklyn for DNC 2016 also saved on optics (role of Russian oligarch, Shanghai government)

Surely the logistical challenges of holding a national presidential nominating convention in Brooklyn were the main (and stated) reasons for the Democratic National Committee's choice of Philadelphia.

And, as I wrote in NY Slant, the huge security cordon in Philadelphia would have been impossible in Brooklyn.

But consider also the optics. As I wrote in my 1/21/15 op-ed in the Times arguing that the choice of Brooklyn was a bad idea:
The arena also raises ethically sticky questions for the Democrats. While the Barclays Center is owned primarily by Forest City Ratner, 45 percent of it is owned by the Russian billionaire Mikhail D. Prokhorov (who also owns 80 percent of the Brooklyn Nets). Mr. Prokhorov has a necessarily cordial relationship with Russia’s president, Vladimir V. Putin — though he has been critical of Mr. Putin in the past, last year, at the Russian president’s request, he tried to transfer ownership of the Nets to one of his Moscow-based companies. An oligarch-owned a…

Former ESDC CEO Lago returns to NYC to head City Planning Commission

Carl Weisbrod, Mayor Bill de Blasio's City Planning Commission Chairman and Director of the Department of City Planning, is resigning,

And he's being replaced by Marisa Lago, currently a federal official, but who Atlantic Yards-ologists remember as the short-term Empire State Development Corporation CEO who, in an impolitic but candid 2009 statement, acknowledged that the project would take "decades."

Still, Lago not long after that played the good soldier at a May 2009 Senate oversight hearing, justifying changes in the project but claiming the public benefits remained the same.

By returning to City Planning, Lago will join former ESDC General Counsel Anita Laremont, who after retiring from the state (and taking a pension) got the job with the city.

Back at planning

Lago, a lawyer, in 1983 began work as an aide to City Planning Chairman Herb Sturz, and later served as the General Counsel to the president of the NYC Economic Development Corporation, Weisbrod himself.