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November 14, 2008
Barclays recommits to naming rights agreement, but details are scant
Atlantic Yards Report
Norman Oder briefly summarizes and analyzes recent events.
On the Barclay's naming-rights deal:
The deal had to be renewed by the end of the month and there was at least speculation that Barclays might reconsider.
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Despite a statement that Barclays was "unwavering" in its commitment, it's reasonable to question whether Barclays, which had some leverage and has faced losses of its own, renewed at the previously announced $400 million ($20 million a year over 20 years) figure.
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I'd bet they managed a better deal of some sort.
A new twist in the arena financing:
The press release also stated that "Barclays continues to play a major role as the co-lead in the financing of the Barclays Center," which is news to me, since previous news coverage described Goldman Sachs as the lead. Has Goldman tried to spread the risk, reward, and responsibility of getting the deal done?
Stock watch:
I imagine that officials at parent company Forest City Enterprises hoped that the announcement might nudge investor confidence. Instead, the stock went down more than 5%, to $7.16, continuing a stunning decline.
English-to-English translation service:
Barclays "affirmed its commitment to the future arena in Brooklyn and the updated timeline for a 2009 groundbreaking."
In translation, "updated timeline" means "delayed timeline."
Layoffs:
Also, Forest City Ratner has begun layoffs, and while the following information can't be confirmed, a commenter on NetsDaily stated, "It may be good that the Nets are going to Brooklyn. But I happen to know they let go of almost ten key internal employees earlier this week and several that were selling for the new arena suites and seating."
I'm also told--secondhand, but from a source I consider reliable--that the fellow occupying the Atlantic Yards Community Liaison Office has departed.
NoLandGrab: Former Forest City employees may be able to send their resumes to the NJ Nets for a shot at free tickets.
Posted by lumi at November 14, 2008 6:21 AM