Barclays Center Posts Loss Of $76 Million For 2023

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Nets Gain: The Barclays Center, home of Brooklyn’s NBA team and the WNBA’s New York Liberty, reported an operating profit of $16 million this year.


Members’ equity in the arena has also fallen by nearly $100 million over the past two years.

Brooklyn Events Center, the arena operating company run by the NBA’s Brooklyn Nets that manages the Barclays Center, lost $76 million during the fiscal year ending June 2023, according to an audited report by PricewaterhouseCoopers released September 29. On an operating basis—that is, before non-cash expenses like depreciation and amortization—the Barclays Center had a profit of $16 million.

The prior year, the arena lost $78 million and posted an operating profit of $14 million.

Home playoff games can mean several million dollars in revenue, and in both 2022 and 2023, the Nets were swept in four games in the first round of the Eastern Conference playoffs. Last season, the Philadelphia 76ers had the honor, and the Boston Celtics did the Nets in the prior year.

The arena company is required to file financial statements because of the PILOT bonds used to finance the construction of the Barclays Center, which is owned by New York State. Joe Tsai purchased the Nets and the operating rights to the arena in 2019 from Mikhail Prokhorov for $3.2 billion, a then-record price for an NBA team.

The Barclays Center is the home of two professional basketball teams—the Nets and the New York Liberty of the WNBA—as well as a professional esports team, the Nets Gaming Crew, all of which are owned by Tsai. The arena also hosts live entertainment events, such as concerts, family shows, and other entertainment events.

For the year ended June 30, 2023, the total PILOT payments made by the Nets were $26.9 million because the team was reimbursed $11.6 million for certain operating and maintenance expenses.

Court Filings

2023 operating expenses for the Barclays Center.

Operating profit, but a net loss.


Some of the arena’s revenue comes from related-party transactions based on the lease agreement between the basketball team and Brooklyn Events Center. The lease requires the Nets to pay (i) the greater of an annual base licensing fee of $6.9 million, subject to annual increases equal to the lesser of 3% or the change in the average monthly Consumer Price Index (as published by the Bureau of Labor Statistics) from the current 12-month period (from October through September) vs. the prior 12-month period, or 10% of net ticket revenue, (ii) an ancillary licensing fee of $541,427, and (iii) other reimbursable expenses to the arena.

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The license agreement also requires the Nets to pay a merchandising fee in an annual sum of $445,578, increased by 3% each NBA season. The arena recorded $683,181 of related revenue on a straight-line basis, resulting in a contract asset balance from the associated license agreement of $868,593 as of June 30, 2023. In total, the arena recorded $11 million of revenue from the Nets, of which $10,021,267 is in Events and Other Income and $929,309 is in Ticketing, Facility and Related fees for the year ended June 30, 2023.

The license agreement also required the WNBA’s Liberty to pay $75,000 for each game played in 2022 and some game-day expenses to the arena. The Barclays Center recorded $2.8 million of revenue from the Liberty, of which $2.6 million is included in Events and Other Income and $170,624 is in Ticketing, Facility and Related fees for the year ended June 30, 2023.

Losing money has eaten away at the arena’s equity. Members’ equity in the Barclays Center was $138 million in June 2023 compared with $196 million a year earlier. In June 2021, members’ equity was $236 million.

Members Only

2023 assets and liabilities for the Barclays Center.

Still lots of debt to be paid.


But don’t weep for Tsai. As of February 2023, New York’s Department of Finance assessed fair market value for the Barclays Center at $2.6 billion, and a year ago we valued the Nets along with the economics of the arena at $3.5 billion, seventh-most in the NBA.


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