« Bikers moving out to make way for builders | Main | Breaking city rules, construction workers take a break, and smoke, at the Dean Playground »
June 7, 2012
Despite the arena hoopla, are they making their nut? Forest City's behind on contractually obligated revenues, and stated $4 million for Calvin Klein sponsorship claim looks doubtful
Atlantic Yards Report
The Barbra Streisand concert announced recently may be "a feather in the cap of the promoters of the arena," as the Times suggested, and the Justin Bieber announcement generated more buzz, as did even the announcement of a couple of hockey games from the Eastern European professional league, KHL.
However--and this question was relevant even before the Nets didn't get lucky in the NBA lottery--it doesn't remove the question mark over whether the Barclays Center will bring in the revenue predicted from ticket sales and sponsorships.
After all, in late March parent company Forest City Enterprises reported that some "64 percent of forecasted contractually obligated revenues for the [Barclays Center] arena are currently under contract."
While that's a not insignificant rise from the 56 percent reported in December 2011, the developer has admitted that the 100% mark will not be met by the arena opening.
The next quarterly report arrives late this afternoon and it should factor in the announcement that Calvin Klein signed on as a Founding Partner, in a deal reported at $4 million a year.
So we'll see how much closer they are to the 100%.
However, as described below, it's doubtful that the Founding Partner deals are worth $4 million a year.
Posted by eric at June 7, 2012 11:59 AM