Entries in Brooklyn (1)

Tuesday
Mar312009

Nets Add More Baggage In Drive To Brooklyn



March 31, 2009: The NBA's Nets remain confident about moving to Brooklyn, N.Y., but continue to face hazardous conditions on the road from New Jersey. Forest City Enterprises, principle owner of the franchise, has reported a $112.2 million loss in 2008, versus a $52.4 million gain in 2007, with $45.1 million of that coming in Q4. The losses come at a time when the company has had to do some spin doctoring on its plans to relocate to a new arena, with the latest timetable being the 2011-12 season, as well as its 20-year, $300-$400 million deal with Barclays Bank for naming rights to the arena, which is scheduled for groundbreaking over the next few months. According to a statement on Monday from Charles A. Ratner, Forest City president and CEO, "In 2009, we do not anticipate commencing construction on any new projects, with the exception of the arena at our Atlantic Yards project in Brooklyn, and a fee-based development project in Las Vegas . . . Through targeted reductions and through attrition over the last 12-18 months, we have reduced our work force by nearly 500, or approximately 30 percent of our non-property staff. This decrease, coupled with other overhead cost reductions has resulted in $70 million to $80 million of cost savings on an annualized basis, approximately 60% of which is associated with development. We have accomplished this while remaining committed to retaining a strong core of real estate talent." Back to Home Page