Ratner's share of Barclays Center expected to sell at profit, and only in part

I wrote this past week that Sports Business Journal suggested that, upon Bruce Ratner's plan to sell his 55% share in the Barclays Center, the arena was worth only $750 million based on revenue flow, lower than the cost to build.

Two days ago, the Wall Street Journal reported that Forest City "is expecting any new investor will pay a price that values the arena substantially above its cost" and noted an expected increase in revenue.

That means they'll be selling the arena portion based on the expected revenue flow, not the current revenue flow. (I should have acknowledged that, as should Sports Business Journal.)

Indeed, arena operators expect $65 million in revenue by 2016, more than double the current $30 million. So that should be factored into the price--but it's an expectation, not a certainty.

Surely the advent of the New York Islanders, coming n 2015, will stabilize revenue flow at a higher figure, as should lower operating costs. But the concert business remains fluid. Indeed, the $65 million figure itself was dailed back from a long-promised $70 million.

Selling only a piece

Also, as Crain's reported, "A person familiar with Forest City Ratner’s plans said the company was only looking to sell a portion of its 55% stake." That's subject to negotiation.

The WSJ reported:

“Barclays Center is the most successful arena in the country because of how we built it and because of how we manage it,” said Ashley Cotton, a Forest City spokeswoman. “We are looking to make a transaction that is commensurate with that value and enhances the property even more.”