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March 3, 2011
Did Barclays do the Nets a favor in buying naming rights, or was the favor from New York State, which gave the rights away?
Atlantic Yards Report
The Nets are in London as part of the NBA's (and their) march toward world branding.
This much is indisputable about the Nets' move to Brooklyn: If Barclays hadn't agreed to a $400 million naming rights deal in 2007, the arena now known as Barclays Center would never have been built. It was the critical commitment at the critical time for the Nets. Without it, the whole effort would have lacked credibility.
So dressed in suits and ties (Jordan Farmar and Johan Petro wore bow ties), Nets players and Avery Johnson spent part of their first day in London at a presentation to some 300 Barclays Capital executives and employees Wednesday. It was the first team event, other than a photo at the London Tower Bridge.
The "favor" did not come from Barclays.
Barclays made an investment, from its advertising budget. (You could argue that American taxpayers sure helped.)
The favor came from the state of New York, which gave away naming rights, and then neglected to count that gift as a subsidy.
And, of course, what was announced as a $400 million deal was cut significantly, after two renegotiations nearly in half.
Posted by eric at March 3, 2011 11:23 AM