Why does Ratner want to sell now?
Ratner’s desire to sell is tied to the team’s increasingly desperate finances—the Nets have lost $70+ million the past two years, according to filings made by Ratner’s parent company, Forest City Enterprises, with the Securities and Exchange Commission. Forest City owns 23% of the team and has increasingly funded team losses, going from 38% to 100% over the past four years, as the filings have noted. It has agreed to fund this year’s losses as well, but reportedly has told Ratner after this year “we’re done”. Overall, Forest City has lost $119.1 million and all investors $353 million, according to a New York Times analysis of team finances. There’s also the urgent need to find a significant amount of capital to construct the $774 million Barclays Center in downtown Brooklyn. Ratner or whoever owns the team must put up at least $200 million in cash and show prospective financiers they have substantial revenue streams—like the lease—in order to obtain tax-exempt financing. And he must do
