Brooklyn Nets minority owner Bruce Ratner has decided to sell his share of the Barclays Center, according to Daniel Kaplan of the Sports Business Journal. Ratner’s company, Forest City Enterprises, owns 55 percent of the arena. Mikhail Prokhorov‘s company owns the remaining 45 percent.
The Barclays Center opened in 2012 and was quickly named the Sports Facility of the Year at the Sports Business Awards. According to the report it has more than $30 million in annual cash flow which would make it worth roughly $750 million (which would make Ratner’s share slightly more than $400 million). However, the report points out that when Prokhorov was discussing a potential sale with Guggenheim Partners the price that was floating around at the time was set at $1.1 billion with the team itself being worth $1.7 billion.
Ratner’s company has already sold 70 percent of the Atlantic Yards project and it seems like he has decided now is time to cash in on the arena as well. If the valuation turns out to be $750 million, as suggested in the report, it does seem that he would be taking a loss as it initially cost $934 million, according to Forest City.
Let’s just hope that this is not a bad sign for the organization. It is now in its third year in Brooklyn and the newness is gone and even last year’s talk of a championship has died off. It’s a little premature to say either way, though, until we find out how much it sells for and who buys it. The report suggests that Prokhorov might decide to or possibly the new Islanders owners Jonathan Ledecky and Scott Malkin.