Thursday, December 03, 2009

After two renegotiations, Barclays naming rights agreement is $10 million a year (not $20 million, never formally confirmed)

Maybe it was never $20 million. Or maybe it was, but that changed after renegotiation. I suggested Tuesday that the Barclays Capital naming rights agreement for the Atlantic Yards arena--unspecified in ratings agency reports--may well have been renegotiated after the project was delayed and marquee architect Frank Gehry left the project.

Well, the Barclays Center Project Preliminary Official Statement (see p. 38 and 78-79) indicates that the 20-year Barclays Center Naming Rights Agreement was renegotiated twice and is worth $10 million a year. The statement was prepared by Goldman Sachs.

(The document was acquired by Eliot Brown of the New York Observer, who quotes Forest City Ratner spokesman Joe DePlasco, spinning as always, as asserting the value is more because it includes "the arena, team and hospitality assets." Sure. But they're not saying $20 million a year.)

Other previous evidence of sweeteners: the addition of Barclays to the bond deal and the naming rights agreement for the Atlantic Avenue/Pacific Street station.

By the way, the New York Times just this week asserted the agreement was for $20 million a year.

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