tag:blogger.com,1999:blog-20743459.post8546226033657601287..comments2024-03-28T05:19:17.215-04:00Comments on Atlantic Yards/Pacific Park Report: Suite deal: despite skyrocketing costs, arena would be paid for mostly by luxury suitesNorman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-20743459.post-85735716256174706802008-03-24T15:28:00.000-04:002008-03-24T15:28:00.000-04:00Interesting back-of-envelope thinking. Your 5% num...Interesting back-of-envelope thinking. Your 5% number may be right (the yield on the Yankees bonds was 4.5%, which is not quite the same as the interest payments), though one would need to also include the possible payment of premiums to bond insurers, some of which would be payable over the life of the bonds rather than upfront, and you'd need to take into account the impact of higher spreads, as well as the fact that the ArenaCo would likely have to repay some principal on the debt. I'd also caution about accepting the Yormark revenue figures in the News article at face value - this is, after all, essentially a sales pitch. We'd also have to get an idea about how far ahead thse boxes would be sold (multi-year is common, though I doubt many would be sold ahead for the entire term of the bonds). Still, with revenue from seat licenses and concession revenues, Ratner will probably get by, as you rightly point out. But would this be enough to eliminate the losses he's running on the Nets? I don't know enough about the current composition of the team revenues to say whether he'd be in a better position post-move.Gringcorphttps://www.blogger.com/profile/09254777209701028458noreply@blogger.com