Will Barclays Center workers be paid past May? Tsai said they'll re-evaluate. The arena won't be open by then.
On 4/21/20, NetsDaily focused on the admirable donations (in New York, and lately San Diego) of ventilators and personal protection equipment by Brooklyn Nets (and arena operating company) owner Joe Tsai and his wife Clara Wu Tsai.
The article also noted Tsai's commitment, announced in mid-March ahead of most other pledges in the sports world, to pay Barclays Center workers:
Will it continue?
The question is: will it continue? Surely Tsai already realizes that arena events with crowds are far, far off, even if it's possible that the arena could host events without ticketholders. So is he ready to pay another $6 million for every 10 weeks? What if that adds up to $30 million, or more?
From the perspective of the already battered bottom line of the 2019-20 arena and team, it would be another blow. Then again, I'm assuming--guessing--that the fund is backstopped from Tsai's own pocket, rather than dwindling arena reserves. (After all, they still have to pay off construction bonds.)
After all, he's a billionaire, and his assets, unlike those of some other sports team owners, haven't been battered. So he could pay workers for a long time. But if other sports teams don't do so, the pressure will recede.
Only partly related, but... travel guru Rick Steves, who's wealthy but surely not a billionaire, has set a high bar during this crisis, as the Seattle Times reported yesterday:
As ESPN reported 4/20/20, Thousands of stadium workers not covered by pledges of financial support from athletes, teams, citing those who work for food concessionaires.
Those working the Staples Center for basketball and hockey will be paid through the end of the season, but that doesn't cover concerts and other events.
Cumulatively, $69 million?
The article also noted Tsai's commitment, announced in mid-March ahead of most other pledges in the sports world, to pay Barclays Center workers:
“So what do we do with all our hourly wage workers that are working so hard. You see them every day when you’re in the arena. They’re the ushers that are taking you to your seats. They’re the people who are providing security, the people that are providing the food service,” he noted.An anonymous source told the New York Post that the Tsais' commitment was valued at $6 million.
“So we made a commitment very early that we were going to provide them with the same pay as though we had continued the games and concerts through the end of May and then we will see what happens.”
Will it continue?
The question is: will it continue? Surely Tsai already realizes that arena events with crowds are far, far off, even if it's possible that the arena could host events without ticketholders. So is he ready to pay another $6 million for every 10 weeks? What if that adds up to $30 million, or more?
From the perspective of the already battered bottom line of the 2019-20 arena and team, it would be another blow. Then again, I'm assuming--guessing--that the fund is backstopped from Tsai's own pocket, rather than dwindling arena reserves. (After all, they still have to pay off construction bonds.)
After all, he's a billionaire, and his assets, unlike those of some other sports team owners, haven't been battered. So he could pay workers for a long time. But if other sports teams don't do so, the pressure will recede.
Only partly related, but... travel guru Rick Steves, who's wealthy but surely not a billionaire, has set a high bar during this crisis, as the Seattle Times reported yesterday:
Since, he’s returned millions of dollars to his customers and is determined to keep his staff of more than 100 at work while many tourism-related businesses are withholding refunds and furloughing or laying off employees. If there’s no revenue this year, his staff’s salary will cost him $14 million out of pocket.Not all workers have protection
That said, the article says that "625 workers at Barclays Center who work for the Chicago-based food services company Levy will get paid by the team and arena for missed Brooklyn Nets games, according to a spokesperson for UNITE HERE Local 100."
Those working the Staples Center for basketball and hockey will be paid through the end of the season, but that doesn't cover concerts and other events.
Cumulatively, $69 million?
Here's an interesting estimate from ESPN:
Patrick Rishe, director of the sports business program at Washington University in St. Louis, estimated that, if the NBA and NHL seasons don't resume, the arena workers employed both by teams and third-party contractors would lose $69 million total in earnings.To me, that doesn't jibe with that $6 million estimate regarding the Barclays Center, even if the latter covers non-sports events. So either it's low, or the $6 million is high.
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