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March 8, 2009
Will Brits Bail Out Barclays to Help Build Billion Dollar Brooklyn Arena?
Develop Don't Destroy Brooklyn
An article in The New York Times about British banks receiving bailout money got the folks at DDDB speculating what might happen if Barclays Bank, which has a $400 million naming-rights deal for the proposed Barclays Center arena, took this aid. Could the naming-rights deal be in jeopardy?
Barclays Bank, an England-based firm, has a $400 million naming rights deal with Forest City Ratner for the proposed Barclays Center Arena as part of the Atlantic Yards project. Of course, being English, Barclays is not eligible for TARP funds. But they are eligible for the British Bailout. Barclays declined to be involved in the first round of bailouts in Britain, but now The Times reports that there is mounting pressure on Barclays to accept toxic asset purchases by the British government.
From the sound of it, Barclays will eventually be bailed out by the British government.
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The British, who are much more no-nonsense than us Yanks, are not going to look too kindly on a bailed out bank putting $400 million into a billion dollar arena across the drink in Brooklyn, in a neighborhood that doesn't even want the thing.
Posted by steve at March 8, 2009 11:10 AM