Latest quarterly report shows boom in Barclays Center ticket revenues, but diminished funds from suites and sponsors. Impact of superstars' presence & departure?

The Barclays Center is clearly doing better in one metric, according to quarterly cash receipts revealed to bondholders last week: it sold a lot more tickets, as shown in the screenshot at right.

The $42.5 million in ticket sales in the first quarter of calendar year 2023--and the third quarter of FY 2023--represent far more than the previous quarter's $19.6 million or even the most robust quarter of FY 2019, $38.2 million.

Presumably that relates to higher prices for Brooklyn Nets tickets and, likely, season ticket renewals, some of which were processed after the Nets soared in NBA standings in December, before crashing in February, with superstars Kyrie Irving and Kevin Durant engineering trades.

Suites/sponsor funds down

However, the $4.8 million in suite and sponsor installments seems low, compared with the previous quarter's $10.3 million and the predecessor quarter's $7.1 million.

As I wrote in August 2021, suite and sponsor installments had not recovered as much as ticket sales, which likely reflects the reported role of make-goods, or adjustments/credits given in place of a refund. That may be continuing. 

Also, it's possible that the arena operating company's decision to part ways with ticketing partner SeatGeek, sponsor of the arena plaza and more, has diminished that company's contribution.

Option tested in survey

Also--I speculate--some sponsors may have sought to renegotiate after Irving and Durant departed, and/or some holders of suites decided not to renew.

(Hey, is that why the arena's considering various new options for premium seating, at a variety of price points and commitments, according to a recent survey?)

The bottom line

Either way, revenues from ticket sales and suites/sponsors do not necessarily translate into higher profits, given (unspecified, for now) operating costs. 

Only when revenues are calculated against expenses, leaving--perhaps--a cushion to pay off construction bonds, do we know whether the arena has truly made a profit. In recent years, it hasn't.

Stay tuned on whether, Joe Tsai, who owns the Nets and the arena company, will again have to backstop arena finances.

Either way, as I've written, the arena is part of a financial success, since the availability of a Brooklyn venue, in the world's media capital, has allowed the value of the Brooklyn Nets--long owned by the operator of the arena company, which since 2019 has been Joe Tsai--to soar.