Weekly Digest: Barclays Center Fortunes Improving
Weekly Digest: Barclays Center Fortunes Improving
Was it the alliance with Ticketmaster, now being sued? Also, continued uncertainty about foreclosure auction of six tower sites.
This digest (#24) offers a way for people to keep up with my Atlantic Yards/Pacific Park Report blog, as well as my other coverage in this newsletter and elsewhere.
After several very lean years, the Barclays Center appears to be on a track for a modestly profitable fiscal year, thanks to a significant increase in ticket sales, surely for concerts and other events, including New York Liberty basketball.
That could obviate the need for billionaire Joe Tsai, who owns the arena operating company, to keep putting money in to backstop the operation.
For the first half of Fiscal Year 2024, the arena operation company tallied $19.3 million in net operating income, which, if results remain consistent, translates to $38.6 million over the full fiscal year. That should be enough to cover net debt service, though it’s a bit more complicated.
Is it Ticketmaster?
One factor may be the arena’s switch (back) to Ticketmaster, which, with its allied Live Nation event promotion arm, is alleged to influence bookings.
Indeed, that switch, from SeatGeek, was cited by the U.S. Justice Department in a lawsuit against Ticketmaster, charging retaliation. If/when that lawsuit is settled or resolved in the DOJ’s favor, that could lead to more competition and lower costs for venues and ticket buyers.
According to the complaint, "Live Nation uses its concert promotion business—the core of its 'flywheel'—to feed its other high margin businesses, including Ticketmaster’s ticketing business, Live Nation’s network of venues, as well as Live Nation’s sponsorship and advertising business."
It’s a fascinating portrayal of alleged predatory behavior.
What about the foreclosure?
Given three postponement, will the foreclosure auction of developer Greenland USA's rights to six tower development sites over the Vanderbilt Yard finally proceed as scheduled for June 5?
Well, my query to a representative of the developer didn't get an answer yet, but the track record--as well as the complexity of finding a qualified developer and resolving aspects of the deal--suggests it's unlikely.
Stay tuned. Atlantic Yards/Pacific Park, as I've said, is a "never say never project," which means there are always twists. A resolution could set the future of the project.
From this Substack newsletter: nothing new
Yes, I know I owe you loyal readers another big-picture article. I have several in process, but I’ve been busy.
Rest assured, there are some interesting things coming.
From Atlantic Yards/Pacific Park Report
May 28: Suing Ticketmaster and Live Nation for "monopolizing" concert markets, Justice Department alleges threats to Barclays Center, which ended SeatGeek deal.
May 29: Reports from Barclays Center operator suggest major rebound in ticket sales, which could (finally) lead to a modestly profitable year. Credit switch to Ticketmaster?
May 30: BSE Global, parent of the Brooklyn Nets and arena company, reports positive community impacts, with the help of sponsors.
May 31: Barclays Center releases June 2024 events calendar: 13 ticketed events, including seven concerts, plus the NBA Draft. Graduation ceremonies ignored.
June 1: Will thrice-postponed foreclosure auction proceed June 5? Seems doubtful, but who knows.