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June 11, 2009
Barclays to stuff Nets deal?
TheDeal.com
With sponsorships out of favor for big banks, it comes as little surprise that the National Basketball Association's New Jersey Nets should fear the possibility of Barclays plc (NYSE:BCS) abandoning the team's plans to move to Brooklyn, N.Y.
The Nets, which currently play in the New York suburb of East Rutherford, N.J., have had plans to move to Brooklyn on the table ever since 2004 when real estate dealmaker Bruce Ratner and rap impresario Jay-Z bought the team for $300 million (The Deal Pipeline subscribers see additional details). Part of that deal included a $400 million, 20-year naming rights agreement with the British bank.
However, the plans to move to Brooklyn have been blocked first by activists opposed to the arena's construction and then by the credit crisis. The latest "pick" is a Dec. 31 deadline to issue tax-free bonds to build the arena, notes New Jersey newspaper The Record. If the bonds aren't issued, then Barclays may seek a fast break from the deal.
NoLandGrab: If the bonds aren't issued by December 31st, then there likely will no longer be any deal from which Barclays could seek a fast break.
Posted by eric at June 11, 2009 6:29 PM