Barclays Center reports modest drop in cash receipts in first half of FY 2026, and a slightly larger drop in net operating income. Will new premium spaces help?

The Barclays Center, in required reports to bondholders, recently disclosed a modest drop in ticket sales and suite and sponsor installments in the first half of FY 2026, compared with the previous year.

Cash receipts for Q1 of FY 2026 were $7.2 million for suite and sponsor installments, and $51.4 million for ticket sales. 

That compares to $5.4 million and $40.3 million in the previous fiscal year.

Cash receipts for Q2 of FY 2026 were $10.8 million for suite and sponsor installments, and $41 million for ticket sales. 

That compares to $10 million and $57.4 million in the previous fiscal year.

Overall, that's a net decrease of $2.7 million.

That said, it's risky to extrapolate, because the arena has opened new clubs and premium seating options, revenue for which may show up in subsequent quarters.

Net operating income down

Over the first half of FY 2026, the arena reported $67.8 million in revenue and $55.8 million in expenses, leaving nearly $12 million in net operating income (NOI), as shown in the screenshot below.

In the first half of FY 2025, the arena reported $77.8 million in revenue and $58.3 million in expenses. leaving $19.5 million in NOI.

In the last fiscal year, NOI was $31.6 million. After subtracting some $20 million in interest expense, that left $11.5 million in profit, by my calculation.

Extrapolating over a full year, the current fiscal year results would yield only $24 million in NOI.

That might barely cover interest expense and be less than the required payments in lieu of taxes (PILOTs), a good chunk of which get rebated to the arena operator.

Again, though, it's risky to extrapolate, because results may fluctuate.

Either way, it's notable that the value of Brooklyn Sports & Entertainment, the holding company for the arena, the Brooklyn Nets, and the New York Liberty, among other properties, continues to rise, thanks to the scarce commodity of an NBA team.