Mikhail Prokhorov's Unique Offer
Mikhail Prokhorov, the Russian billionaire being courted by Forest City Ratner to help fund the Barclays Center arena for the New Jersey Nets (to become the Brooklyn Nets), posted his counter offer to the Atlantic Yards shareholders on his blog yesterday. Develop Don’t Destroy Brooklyn brings us a translation of the entry, which DDDB calls…
Mikhail Prokhorov, the Russian billionaire being courted by Forest City Ratner to help fund the Barclays Center arena for the New Jersey Nets (to become the Brooklyn Nets), posted his counter offer to the Atlantic Yards shareholders on his blog yesterday. Develop Don’t Destroy Brooklyn brings us a translation of the entry, which DDDB calls “rather foolish and absurd.” The gist is that Prokhorov will finance the arena in exchange for a significant share in the project as well as a controlling share in the Nets. What’s unique about the post is that it sounds like Prokhorov’s primary interest in the deal is the opportunity to elevate the state of basketball in Russia, which he says suffers from inconsistent financing and an unstable, unprofitable business model. He writes: “For our group, participation in such a complex project undoubtedly is interesting only in the event that NBA technology can be used for the systematic development of basketball in Russia.” (Perhaps NBA technology sounds less bizarre in Russian? And since when do oligarchs have blogs?)
NJ Nets and the Development of Russia’s Basketball [Mikhail Prokhorov Blog]
Prokhorov Issues Absurd Statement on the Nets, AY [DDDB]
Legitimate question.
Many posters (bxgirl) keep using the terminology “we (taxpayers) are PAYING for this arena.â€
Aren’t most of the benefits to Ratner (besides the costs to upgrade infrastructure) the result of tax exemptions?
It’s not like the City and State are cutting a check to Ratner … they’re just foregoing extra money they WOULD HAVE received (such as mortgage recording tax, property tax, etc.). Further, if we had the status quo (no Ratner), these additional City/State revenues would not have been available to collect anyway.
Also, I just read the New York City Independent Budget Office report and the Net Impact to the City/State/MTA is $8.3 million. This seems minor.
Say what you want about eminent domain, design, process, etc. but I don’t think making the financial argument carries the day when bashing Ratner/Russians/The Plan.
antidope- can you call me on the ropes? 🙂
Truthfully- its not that I mind an arena. I don’t want to pay for it – and Ratner certainly has the money and connections to finance it without my pittance- I don’t like that he feels the need to squeeze taxpayers and I really dislike the idea that he needs eminent domain to build his development. He certainly already had plenty of land. And now he’s cheaping out on the money promised to the MTA. An arena’s fine- but not how he’s doing it.
ahh, that’s the opinion i suspected when i asked if you are for or against. i don’t begrudge you your opinion, but i will pencil you in against an arena.
i think a nicely designed arena will continue the ongoing transformation of brooklyn into a place more and more people want to live and play.
except for the maplewood guy of course.
I saw that movie
the Russians are coming
the Russians are coming
let them come and lose money too!
So since these guys have all that money, whay should my taxes have to subsidize them? Sorry, antidope- I need my streets repaired, I need better public transportation, I need better everything but an arena. If they can’t fund it themselves, they don’t need to do it. We need much better priorities than tossing money at the wealthy for an arena we will have to lay big bucks to attend events at, and which will be a money pit as per an independent financial study.
Any financing the nets can get at this point is good for their sakes. Many English Football Clubs have been recently bought up by foreign owners. Ironically, it’s the Clubs bought by American Owners that are in potential financial trouble – Liverpool, Manchester United. Chelsea, which was bought by a Russian oligarch is doing quite well with the hundreds of millions he has invested, of course – he fires the coach every season.
I’m with Sparafucile. We can fantasize all we want about people taking public transportation- and many will- but the reality is, you need people who will come from more outlying areas where access to a subway is not that great.
Madison Square Garden doesn’t get by without public parking – there are plenty of garages and lots in that area, and they need it. 33% of weekday game attendees, and nearly 50% on weekends, drive to the Garden.
Still, for me personally this is all about eminent domain and corporate welfare. If Ratner, or Prokhorov, or anyone else wanted to build on his own land with his own money, I really wouldn’t object, whether or not I happen to think an arena is a good or bad project at this particular location.
there never would have been an arena wo govt tax subsidies. period. and certainly not in this envrionment.
i would venture to say that the govt has wellpriced the subsidies as it looks like it offered just enough to bring in the marginal investor required.
saying there should be no subsidies is tantamount to saying no to the arena.