See update that explains that current management should remain, at least in the near term and another that explains the arena share is expected to sell at a profit.
NetsDaily, drawing on Sports Business Journal's paywalled report, tells us Bruce Ratner selling majority share in Barclays Center. And while the publication did not report the projected sales price, it suggested that the arena's worth $750 million based on revenue flow, with Ratner's 55% share (part of a consortium with about 100 other investors) valued at a little more than $400 million.
NetsDaily, drawing on Sports Business Journal's paywalled report, tells us Bruce Ratner selling majority share in Barclays Center. And while the publication did not report the projected sales price, it suggested that the arena's worth $750 million based on revenue flow, with Ratner's 55% share (part of a consortium with about 100 other investors) valued at a little more than $400 million.
That's an interesting number, because the arena, the transit connection, and site work cost $934 million, Forest City has said. Another accounting put project costs at $845 million.
I don't doubt the calculations regarding the sale are complicated, but that $750 million figure on its face looks like a loss.
In the first year, arena revenues were well below the expected figure, though they improved in the second year. The advent of the Islanders in 2015 should deliver a steadier revenue flow, even if concerts diminish.
So it's curious that the arena's for sale; perhaps Forest City recognizes that the upside from the Islanders is most available now, or perhaps Cleveland has decreed it. But Ratner has called the arena "fortress real estate," meaning it's something that can't be easily duplicated.
In the first year, arena revenues were well below the expected figure, though they improved in the second year. The advent of the Islanders in 2015 should deliver a steadier revenue flow, even if concerts diminish.
So it's curious that the arena's for sale; perhaps Forest City recognizes that the upside from the Islanders is most available now, or perhaps Cleveland has decreed it. But Ratner has called the arena "fortress real estate," meaning it's something that can't be easily duplicated.
SBJ writer Daniel Kaplan suggested that potential owners could be Nets owner Mikhail Prokhorov, who owns a 45% share of the arena, or the new owners of the Islanders, former Capitals owner Jonathan Ledecky and London-based investor Scott Malkin.
If Prokhorov controls the arena, that would mean that foreign owners control all of Atlantic Yards. (Update: Yes, as the commenter points out, except for B2. But I wouldn't be surprise to see the Greenland Group take a share.)
If Prokhorov controls the arena, that would mean that foreign owners control all of Atlantic Yards. (Update: Yes, as the commenter points out, except for B2. But I wouldn't be surprise to see the Greenland Group take a share.)
«If Prokhorov controls the arena, that would mean that foreign owners control all of Atlantic Yards.» Except for B2.
ReplyDeleteYou're right, I'll adjust the post.
DeleteIs there any comments from Empire State Development the folks who brought us this arena?
ReplyDelete