Money and cap space are not the problems. The team’s owner, Mikhail D. Prokhorov, is a Russian oligarch, and its payroll, about $58.7 million, is the lowest in the league. By contrast, the Warriors’ is $107 million. The Nets’ next opponent, Cleveland, owns the league’s highest payroll at $131.3 million, well above the soft $94.1 million league cap and the $113.3 million luxury-tax limit.It was not so long ago when the Nets had the league's highest payroll and a crushing luxury tax.
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…