One would think with the influx of arena concerts and events being held on a regular basis at the freshly built Barclay’s Center, it would result in staggering profit gains, right? After all, the arena just accomplished another feat this past week, where Italian tenor Andrea Bocelli became the first person to sell out Barclays twice. It must account for something at this point, but apparently that isn’t the case here, as documents filed by Forest City Enterprises, Bruce Ratner’s parent company, indicate that the Barclays Center has in fact actually missed its profit goals for this year and, as a result of this news, arena management is looking for ways to cut down costs in efforts to improve the profit picture. Who would’ve thunk it:
In its first full year in operation, the arena brought in about $30 million in operating profit, the company reported on Monday, far less than the more than $76 million projected when the arena began construction in 2010. The fourth quarter was its strongest yet—with $10.8 million in operating profit—but still well below expectations.
Forest City says it has spent lavishly in the first year to make an impression and will be cutting expenses, not further described, going forward. Still, it now projects a profit of $65 million a year in 2016, the Islanders move to Brooklyn. That’s down from $70 million it projected last quarter.
Barclays is owned 45 percent by Mikhail Prokhorov’s ONEXIM Sports and Entertainment and 55 percent by Nets Sports and Entertainment, Ratner’s partnership. NSE has more than 100 investors, including Jason Kidd who own less than one percent.