Nets Contemplating Move To Newark?

New Jersey Nets owner Bruce Ratner has been looking to build a new stadium in Brooklyn, New York, since he bought the team in 2003 but the real estate market meltdown and credit crisis has brought that project to a standstill even though they're claiming that ground will be broken this summer on the Brooklyn project (Atlantic Yards). The team still plays in the Meadowlands, but New Jersey built a shiny new arena in downtown Newark that hosts the New Jersey Devils and could be home to the Nets in the future.

While I think the Nets would benefit more from a move to Brooklyn, the move to the new arena in downtown Newark might be just the thing the team needs at this juncture. For now, the team is planning on holding two preseason games at the Prudential Center in October (the 2009-2010 season).

There are some obstacles to the Nets playing games at the Rock; namely that the Devils have a tight grasp on all the revenues from concessions at the arena.

But even if the Nets are unable to move to Brooklyn, given the difficulty in financing construction of the arena, there are obstacles to a Newark move as well.

Under the terms of the Devils’ lease, the National Hockey League team keeps nearly all of the revenue from all events held at the Prudential Center.

That raises questions about how much revenue a move to Newark would generate for the Nets. However, the value of luxury suites and corporate sponsorships would increase with a second major pro sports franchise.

The Nets have played in the Meadowlands since the arena opened in 1981. The club is losing an estimated $40 million a year playing in one of the NBA’s oldest facilities, which does not have the thousands of lucrative premium seats that newer buildings do.