tag:blogger.com,1999:blog-20743459.post6813431550951043497..comments2024-03-28T05:19:17.215-04:00Comments on Atlantic Yards/Pacific Park Report: Barclays Center bombshell: arena lost $5-6M in FY 2015, revenues behind estimates (updated & corrected from $9M)Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-20743459.post-63271955000017827292016-01-04T19:18:40.135-05:002016-01-04T19:18:40.135-05:00Yes, the move to Brooklyn raised the value of the ...Yes, the move to Brooklyn raised the value of the Nets. But Forest City and others all said the arena would be valued at *above* cost for the purpose of the sale.<br /><br />Comparison of events between Barclays and MSG is done annually, and MSG is ahead (duh). The key question is not total revenues or tickets sold, but Net Operating Income, because as we have learned, Barclays sold a ton of tickets in first year of operations but didn't make much profit, because (in part) of the deals it struck to get big names.Norman Oderhttps://www.blogger.com/profile/07618087999719667586noreply@blogger.comtag:blogger.com,1999:blog-20743459.post-13342778283885943442016-01-04T19:12:27.721-05:002016-01-04T19:12:27.721-05:00Thank you for the updated analysis. It is still di...Thank you for the updated analysis. It is still difficult to calculate the arena’s actual costs because you don’t know them. The public numbers likely include various other costs that were folded into the arena’s alleged costs (calculations of overhead and administration can include oh so much that isn’t really overhead and administration for that particular project, or at least a greater percentage that would be reasonably justified). It also, still, doesn’t include the various tax benefits for construction of the arena, which include lower cost bonds that cause lost revenues to taxpayers but reduced Ratner’s expense. <br /><br />Income was certainly down, which is news, but a comparison of events for MSG vs Barclays would be interesting in terms of days booked and revenues generated (as well as valuation of the facililty).<br /><br />Also, there still is multiple revenue streams. If, for example, the stadium is worth less, it still increased the value of the Nets substantially (and not just the move from NJ to NY). Same with the Yankees and other sports teams with new stadiums, virtually all of which demonstrated increased team value. Some might call the stadium a loss leader, but green is green overall especially now that the same owner controls the stadium and the team (just like Ratner did).<br /><br />And bond rating agencies being wrong? Old news as you note, but their rating agency payment check cleared so there’s always that.<br />Anonymousnoreply@blogger.com