Wall Street's meltdown is causing fear in the arena/stadium luxury suite racket,
the NY Post reports:
New York sports teams banking on high-priced sales of luxury suites at an unprecedented
number of new stadiums and arenas could feel the pinch from the Wall Street
Five teams - the Jets, the Giants, the Yankees, the Mets and the Nets - are
building expensive venues with more luxury suites, hoping to draw corporate
In the past, the Street could be counted on to be a big buyer of premium seats,
but selling to financial firms has suddenly become a lot tougher in the wake
of Lehman Brothers' bankruptcy, Merrill Lynch's shotgun wedding to Bank of America
and the crisis of confidence shaking Morgan Stanley.
"With all these stadiums trying to sell luxury seats, personal seat licenses
and season tickets, this is horrible timing," said Robert Tuchman, head
of sports entertainment firm Premiere Corporate Events.
The Nets have sold roughly 30 percent of the 128 suites at the new Barclays
Center and count financial institutions among those buyers. The suites have
averaged around $300,000. The team has eight more potential buyers booked to
visit its showroom, a spokesman said
questions the veracity of the Nets spokesman's figures (who wouldn't?):
We think the Post means "the Nets claim they have sold...."
We can't imagine we're the only ones who find it hard to believe that in this
financial climate, some three dozen entities would plunk down deposits on suites
in an arena that may never exist?