In spite of cuts in payroll, both on and off the court, pay freezes and Friday furloughs, the Nets continue to lose tens of millions of dollars annually.
Forest City Enterprises, Bruce Ratner's parent company, reported this week that it picked up 68% --or $28.7 million-- of the team's net losses during the fiscal year ending January 31. That works out to an overall loss of $42.2 million. The 2009 figure was $55.5 million. Forest City had picked up 54% of the team's net losses that year --$30 million.
Much of the team's losses the last few years, attributed mainly to declining attendance, have been covered by equity contributions from investors, principally FCE, as well as loans from investment banks, a sports financing company and the NBA. Mikhail Prokhorov has agreed to accept 80% of the team's debt --about $175 million-- and eat up to $60 million in losses while the team is in New Jersey.
- Forest City Enterprises - Annual Report - Forest City Enterprises
In Forest City conference call, Atlantic Yards cited as example of FY 2009 milestones - Norman Oder - Atlantic Yards Report