Field of Schemes
sports stadium news and analysis


This is an archived version of a Field of Schemes article. Comments on this page are closed. To find the current version of the article with updated comments, click here.

November 13, 2009

Waiting for Nets bonds: Would you believe, December?

Looks like those Nets arena bonds won't be put on sale next week after all: The Empire State Development Corporation now says they won't be sold until mid-December. That's getting dangerously close to the December 31 deadline that the IRS has set for allowing the bonds to be tax-exempt (which would otherwise be illegal), after which the whole project would pretty much go kablooey.

The problem, presumably, remains that little bond rating issue that the Nets are reportedly having: The New York Observer observes that this is the third time in the last two months that the bond issuance date has been pushed back. Goldman Sachs managing director Gregory Carey, who's negotiating with the bond rating agencies on the Nets' behalf, said he hopes to have the issue resolved before Thanksgiving, but didn't exactly sound super-confident: "Nothing's done until it's done, but there's nothing in the discussions I've had that would lead me to believe that we're not going to get to where we need to get to. We have no other choice."


This project really needs to die

Posted by Steve on November 15, 2009 04:04 PM

Is the IRS deadline set in stone, or is there any way the Nets could be granted an extension or stay on it? Are we really looking at 12/31/09 as the do-or-die deadline for the Atlantic Yards?

Posted by Ian on November 15, 2009 06:39 PM

The IRS can do anything it wants, but it seems pretty unlikely they'd change the date, given how far we are past the new regs going into effect already.

Posted by Neil on November 15, 2009 08:06 PM

I agree with Steve. Couldn't have said it any better.

Posted by Daniel Francis on November 22, 2009 03:09 AM

Latest News Items