Skip to main content

Hockey News: Islanders' deal in Brooklyn is unique, as arena guarantees annual sum; fan base shifting to Brooklyn (as with Nets)

The New York Islanders, from a business perspective, will not mirror the Brooklyn Nets, but they are reframing their fan base, as have the Nets, as the hockey team moves from Long Island. Not so many fans will move with them, but there are enough people in Brooklyn and New York City to pay new, higher ticket prices.

Essentially, the hockey team no longer administers or controls its own business operation, a highly unusual situation.
The agreement to move the franchise includes the provision that the arena pays Islanders ownership an annual sum to play at Barclays Center and, in exchange, Barclays Center acquired all ticket and suite sales, sponsorships, marketing and promotions and their revenue.
While Barclays Center (and Brooklyn Nets) CEO Brett Yormark confirmed that, the Islanders wouldn't comment. Nor would anyone confirm the sum, though last year the New York Post reported, using unnamed sources, that the guarantee was $50 million annually.

Reports Hackel:
“We did make a revenue guarantee – I’m not going to discuss what the number is – but the number, when we hit it, would only put us 20th in the NHL in revenue,” [Yormark] said.
If so, that number would be around $100 million, using Forbes’ most recent listing of the 30 NHL club revenues. After that number is reached, Barclays Center ceases sharing and keeps the surplus.
Glenn Gerstner, chairman of the Sports Marketing Department of St. John’s University in New York (and a longtime Islanders fan) told Hackel that Islanders owner Charles Wang has essentially outsourced his team’s business department, thus saving overhead.

Hackel suggests it's unclear how the arrangement will work for the team, especially since they can't raise ticket prices to pay for new players. (Current payroll is under $67 million.) Still, he notes that Forbes estimated the most recent team revenue figure at $83 million, with losses of $2.5 million, less than 2012 losses, according to the Times, of $8 million.

The $50 million is by no means the only team revenue. There's a TV deal worth an estimated $20 million a year, and rising, plus league revenues, perhaps $20 million a team, plus sponsorship and licensing fees. Thus, Hackel suggests, the $90 to $100 million annually would trump previous losses, as well as the previous $83 million, which counted overhead.

More expensive tickets, a new fan base

Reports Hackel:
Yormark says Islanders tickets at Barclays Center are roughly twice the price of a ticket at Nassau Coliseum, although the premium tickets include free food and other inducements.
That's a bit unclear, since the premium tickets are only a fraction of the total. About 25% of ticket sales "come from the established Long Island fan base, a larger percentage than he expected." (Maybe not a larger percentage than Islanders' fans expected?)

People from Brooklyn represent 33 percent of the total, with 21 percent from Manhattan. That's similar to the strategy with the Nets, which got a significant Brooklyn boost and fewer New Jersey fans than originally expected.

Indeed, unlike the family-friendly Nassau Coliseum schedule, with many games on weekends, the new schedule is oriented to weeknights--a corporate crowd, one expert tells Hackel--with four home games on Saturdays and three Sunday or holiday Monday matinees. 

That also cuts down on weekend traffic problems in Brooklyn but also kills some fan traditions.

The comments on Lighthouse Hockey's coverage included this message from a frustrated fan:
Abused By Barclay Already
I was a 25 yr Full Season Tix holder who got sucked into an 8 game package at Barclays. While I am not happy about it, I understand that I am paying $70 a game for the same seats that sell to full season tix holders for $55.HOWEVER, they never told me one of my 8 games would be an exhibition, excuse me, "preseason" game. That is BS!!! You can’t give those tickets away. I see them forcing the full season ticket guys into paying $55 for them but itSUCKS that they are ripping me off for $70. I see the legalese in my contract that says they may use a "preseason" games but I am not an attorney, I’m a Hockey Fan! But not a Barclays Fan! I am trying to get out of my contract, doubt they will let me, and I will never go again!!!!!. Already taking a lesson from Mr Dolan at MSG and abusing their most loyal fans…. I’m PISSED!!
by Dr Gary on Jul 20, 2015 | 12:29 PM 
Introducing the new home

The Times reported, 7/9/15, Islanders Still Touching Up Their New Home:
Water dripped from high above the ice on at least one row of the makeshift press area Wednesday, and the 10,000-square-foot space that will include the new locker room for the Islanders, who announced in October 2012 that they would begin playing in Brooklyn in the 2015-16 season, remains at least a month from completion.
Still, General Manager Garth Snow and Steve Rosebrook, the arena’s general manager, were beaming before the team’s rookie scrimmage as they led members of the news media on a tour of the still-under-construction rooms for the player lounges and fitness areas.
...Fans will need to carve out new routines. Saturday games — a Nassau Coliseum staple — will be nearly gone; the team has only four such contests next season, with two of them in early April, in the season’s closing weeks.
Most games will take place on weeknights, although there will be several Sunday afternoon games, including one against Edmonton on Super Bowl Sunday in February.
Then there are the quirks of Barclays Center, which features an off-center scoreboard, several hundred seats with obstructed views and the overall feel of a basketball arena.
...Barry Baum, Barclays Center’s chief communications officer, said 8,000 full-season Islanders ticket plans had been sold. On Thursday, tickets for all games go on sale to the public

Comments

Popular posts from this blog

Barclays Center/Levy Restaurants hit with suit charging discrimination on disability, race; supervisors said to use vicious slurs, pursue retaliation

The Daily News has an article today, Barclays Center hit with $5M suit claiming discrimination against disabled, while the New York Post headlined its article Barclays Center sued over taunting disabled employees.

While that's part of the lawsuit, more prominent are claims of racial discrimination and retaliation, with black employees claiming repeated abuse by white supervisors, preferential treatment toward Hispanic colleagues, and retaliation in response to complaints.

Two individual supervisors, for example, are charged with  referring to black employees as “black motherfucker,” “dumb black bitch,” “black monkey,” “piece of shit” and “nigger.”

Two have referred to an employee blind in one eye as “cyclops,” and “the one-eyed guy,” and an employee with a nose disorder as “the nose guy.”

There's been no official response yet though arena spokesman Barry Baum told the Daily News they, but take “allegations of this kind very seriously” and have "a zero tolerance policy for…

Behind the "empty railyards": 40 years of ATURA, Baruch's plan, and the city's diffidence

To supporters of Forest City Ratner's Atlantic Yards project, it's a long-awaited plan for long-overlooked land. "The Atlantic Yards area has been available for any developer in America for over 100 years,” declared Borough President Marty Markowitz at a 5/26/05 City Council hearing.

Charles Gargano, chairman of the Empire State Development Corporation, mused on 11/15/05 to WNYC's Brian Lehrer, “Isn’t it interesting that these railyards have sat for decades and decades and decades, and no one has done a thing about them.” Forest City Ratner spokesman Joe DePlasco, in a 12/19/04 New York Times article ("In a War of Words, One Has the Power to Wound") described the railyards as "an empty scar dividing the community."

But why exactly has the Metropolitan Transportation Authority’s Vanderbilt Yard never been developed? Do public officials have some responsibility?

At a hearing yesterday of the Brooklyn Borough Board Atlantic Yards Committee, Kate Suisma…

Barclays Center event June 11 to protest plans to expand Israeli draft; questions about logistics

At right is a photo of a poster spotted in Hasidic Williamsburg right. Clearly there's an event scheduled at the Barclays Center aimed at the Haredi Jewish community (strict Orthodox Jews who reject secular culture), but the lack of English text makes it cryptic.

The website Matzav.com explains, Protest Against Israeli Draft of Bnei Yeshiva Rescheduled for Barclays Center:
A large asifa to protest the drafting of bnei yeshiva in Eretz Yisroel into the Israeli army that had been set to take place this month will instead be held on Sunday, 17 Sivan/June 11, at the Barclays Center in Downtown Brooklyn, NY. So attendees at a big gathering will protest an apparent change of policy that will make it much more difficult for traditional Orthodox Jewish students--both Hasidic (who follow a rebbe) and non-Hasidic (who don't)--to get deferments from the draft. Comments on the Yeshiva World website explain some of the debate.

The logistical questions

What's unclear is how large the ev…

Atlanta's Atlantic Yards moves ahead

First mentioned in April, the Atlantic Yards project in Atlanta is moving ahead--and has the potential to nudge Atlantic Yards in Brooklyn further down in Google searches.

According to a 5/30/17 press release, Hines and Invesco Real Estate Announce T3 West Midtown and Atlantic Yards:
Hines, the international real estate firm, and Invesco Real Estate, a global real estate investment manager, today announced a joint venture on behalf of one of Invesco Real Estate’s institutional clients to develop two progressive office projects in Atlanta totalling 700,000 square feet. T3 West Midtown will be a 200,000-square-foot heavy timber office development and Atlantic Yards will consist of 500,000 square feet of progressive office space in two buildings. Both projects are located on sites within Atlantic Station in the flourishing Midtown submarket.
Hines will work with Hartshorne Plunkard Architecture (HPA) as the design architect for both T3 West Midtown and Atlantic Yards. DLR Group will be t…

Not quite the pattern: Greenland selling development sites, not completed condos

Real Estate Weekly, reporting on trends in Chinese investment in New York City, on 11/18/15 quoted Jim Costello, a senior vice president at research firm Real Capital Analytics:
“They’re typically building high-end condos, build it and sell it. Capital return is in a few years. That’s something that is ingrained in the companies that have been coming here because that’s how they’ve grown in the last 35 years. It’s always been a development game for them. So they’re just repeating their business model here,” he said. When I read that last November, I didn't think it necessarily applied to Atlantic Yards/Pacific Park, now 70% owned (outside of the Barclays Center and B2 modular apartment tower), by the Greenland Group, owned significantly by the Shanghai government.
A majority of the buildings will be rentals, some 100% market, some 100% affordable, and several--the last several built--are supposed to be 50% market/50% subsidized. (See tentative timetable below.)

Selling development …

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…

"There is no alternative": DM Glen on de Blasio's affordable housing strategy

As I've written, Mayor Bill de Blasio sure knows how to steer and spin coverage of his affordable housing initiatives.

Indeed, his latest announcement, claiming significant progress, came with a pre-press release op-ed in the New York Daily News and then a friendly photo-op press conference with an understandably grateful--and very lucky--winner of an affordable housing lottery.

To me, though, the most significant quote came from Deputy Mayor Alicia Glen, who, as the Wall Street Journal reported:
said public housing had been “starved” of federal support for years now, leaving the city with fewer ways of creating affordable housing. “Are we relying too heavily on the private sector?” she said. “There is no alternative.” Though Glen was using what she surely sees as a common-sense phrase, it recalls the slogan of a politician with whom I doubt de Blasio identifies: former British Prime Minister Margaret Thatcher, a Conservative who believed in free markets.

It suggests the limits to …