Wednesday, February 24, 2010

Luxury suites at the Atlantic Yards arena: from 170 (2006) to 130 (2008) to 100 (2009) to 104 (2010)

On Tuesday the Nets announced yet another effort to sell luxury suites at the Atlantic Yards arena/Barclays Center, and earlier today I pointed out a slight uptick since September in the number of suites, from 100 to 104.

However, we should remember how the number has decreased, overall. In the KPMG report prepared in 2006 for the Empire State Development Corporation, the Nets were estimating 170 suites, though analysts were skeptical.

KPMG stated (as previously noted in February 2007):
[Forest City Ratner] assumes that approximately 162 of 170 suites will be sold annually through a combination of first ring suites, second ring suites, courtside suites, and loge boxes. The suite price includes the price of tickets to NBA games and approximately 25 percent of other events held at the arena. In addition, it is assumed that three of the four party suites, each with sixty suites, will be sold for all NBA games on an annual basis.

Given the competitiveness of the market, both the total number of suites and the average price per suite assumed by FCRC appear to be on the high end relative to other similar arenas. NBA arenas average approximately ninety suites. Facilities in Chicago, Detroit, Los Angeles, Dallas, Toronto, and Philadelphia are the only ones that offer more than 125 suites. Other than the Palace at Auburn Hills in Detroit, all of these facilities host both NBA and NHL teams.
Indeed, by May 2008, the number of suites had been cut to 130. (Here's more on the hype.)

To do the math, 104 represents a 39% decrease from 170.

(Of course, that's all an improvement over the 29 suites at the Meadowlands arena where the Nets languished for so long.)

No comments:

Post a Comment