Skip to main content

With current season an "epic disaster" (as per beat reporter), Nets' Yormark said to be looking to summer 2016

The honeymoon is surely over. Consider this array of tweets yesterday from Daily News beat reporter Stefan Bondy (read from bottom up):
  • This season = epic disaster for Nets. Everything that could've gone wrong has indeed gone wrong, all based around trades of years past
  • Billy King gave Danny Ferry the right to swap 1st picks in 2015, and the Hawks have the best record in NBA.
  • They trade Jason Kidd to the Bucks, and he's a Coach of the Year candidate.
  • The Nets gave three first round picks to the Celtics, and the Celtics have a better record. The Nets have nobody from that trade.
  • Thus, epic disaster. And not a peep from Mikhail Prokhorov.
  • We were all worried about Brook Lopez's foot and Deron Williams ankles. They're healthy and the Nets are still 11 games under .500.
  • But don't worry, the Nets are gonna take over New York.
It should be noted that the departed ex-Celtics produced some trade value, such as the forward Thaddeus Young.

But it's clear the Nets gambled, and lost--and must feel lucky that the Knicks have had even more of a disaster.

As NetsDaily reported:
The Nets seem clueless as to why they're playing so poorly, despite knocking off two of the NBA's top teams two games in a row.
Indeed, the Nets are worse at home than on the road.

Wait til 2016?

Post beat reporter Tim Bontemps reports:
I had a lengthy conversation with Nets CEO Brett Yormark in which he expanded on his comments at the Sports Business Summit in New York last week that he sees an opportunity for the Nets to take a bigger cut of the city’s basketball fan population given the current struggles of the Knicks.
...On multiple occasions throughout our conversation, Yormark referenced the “summer of 2016” being “big for us.” He was careful not to mention anyone by name, but it is clear Yormark was referring to free agency that summer – when, assuming there is no “smoothing” of the massive influx of television money into the system, the Nets should have in excess of $60 million to chase Kevin Durant, among others.
The summer of 2016 is two seasons away. That implies that the 2015-16 season will be a holding pattern.

Of course mega-marketer Yormark has to point to something, and it's possible the Nets could lure a real superstar like Durant.

But let's not forget that the Nets may well have new ownership by then, and Yormark himself may be gone. That means another team CEO might be marketing his own plans.

Update: ESPN's Darren Rovell reports:
Brooklyn Nets owner Mikhail Prokhorov has ended his agreement with investment bank Evercore Partners, who he hired to explore a sale of the team, banking sources told ESPN.com on Tuesday.
"Nothing has happened and they've been talking about it (in the media) for a year," Nets CEO Brett Yormark said last week on a panel in Manhattan. "So I'd probably say I don't think anything is going to happen. We have an ownership group that is very committed."
I still think Yormark's language leaves significant wiggle room.

Comments

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…

At 550 Vanderbilt, big chunk of apartments pitched to Chinese buyers as "international units"

One key to sales at the 550 Vanderbilt condo is the connection to China, thanks to Shanghai-based developer Greenland Holdings.

It's the parent of Greenland USA, which as part of Greenland Forest City Partners owns 70% of Pacific Park (except 461 Dean and the arena).

And sales in China may help explain how the developer was able to claim early momentum.
"Since 550 Vanderbilt launched pre-sales in June [2015], more than 80 residences have gone into contract, representing over 30% of the building’s 278 total residences," the developer said in a 9/25/15 press release announcing the opening of a sales gallery in Brooklyn. "The strong response from the marketplace indicates the high level of demand for well-designed new luxury homes in Brooklyn..."

Maybe. Or maybe it just meant a decent initial pipeline to Chinese buyers.

As lawyer Jay Neveloff, who represents Forest City, told the Real Deal in 2015, a project involving a Chinese firm "creates a huge market for…

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…