At a meeting of investors and analysts at Barclays Center Monday, Forest City Enterprises executives said they are "evaluating the economics" of its minority stake in the Nets, indicating Bruce Ratner's parent company may sell.
"We're currently evaluating the economics of the team in Brooklyn," Forest City executive Jim Lester said, according to Atlantic Yards Report, which reported on a webcast of the meeting. "As [arena/team CEO] Brett [Yormark] said, the sales going well. Player salaries are expensive, and the new CBA penalizes franchises for having hefty player salaries, so we're working through that now."
The Cleveland-based company, run by Ratner's extended family, owns 12.37 percent of the team while other associated investors own a combined 7.63 percent for a total of 20 percent. Mikhail Prokhorov's ONEXIM Sports and Entertainment Holdings USA owns 80 percent of the team. FCE owns 34.01 percent of the arena, associated investors another 20.99 percent and ONEXIM 45 percent. FCE ate tens of millions of dollars in Nets operating losses over the last decade.
Most of the meeting was taken up with positive reports on the Nets and Barclays Center's profitability. Yormark said the the Nets are now in the top five in the NBA in terms of gate revenue and that Opening Night vs the Knicks should be "the biggest gate ever in the history of the franchise, over $2 million."
- At Investor Day, Forest City executives praise arena performance, say Prokhorov loan paid off, leave hint that share in Nets may be sold - Norman Oder - Atlantic Yards Report
The other side of the Nets move to Brooklyn – the revenue bonanza - John Brennan - The Record