The dismal economic outlook has not spared the sports world, and in my neighboring borough, it may kill the Nets' plans to play within the New York City limits by 2011 -- if at all.
The Star-Ledger reports today that team owner Bruce Ratner is blaming a recent court ruling for delaying groundbreaking at least another six months. But financial experts tell the paper what seems obvious to me -- this is more of an economic delay than a legal one.
The $4 billion Atlantic Yards project is heavily reliant on a pending federal court ruling on whether tax-exempt bonds can be used to finance the $950 million arena. Amid the current credit squeeze and upside-down bond market, it is difficult to imagine raising enough cash through bond sales to stick a shovel in the dirt -- much less build a balance that LeBron James would like to call home after he becomes a free agent.
Adding to Ratner's challenge is a November groundbreaking deadline that allows Barclays to pull out of its naming rights deal. Clearly, the deadline will not be met, so at the very least, Barclays will be looking to renegotiate its $400 million commitment.
Ratner continues to insist that the project will go forward, but things are looking bleak, to say the least. Newark probably never looked so good.