Earlier this year, the Sports Business Journal reported that the Nets’ Sports & Entertainment division, which owns 23 percent of the team, posted a $27.8 million loss for the fiscal year that ended January 31st. The Nets continue to lose money, with the team suffering a $25 million operating loss for the the first six months of fiscal 2009, according to a filing by the team’s parent company. John Lombardo reports (subscription required):
Financial losses continue to mount for the New Jersey Nets, which during the first six months of fiscal 2009 had a net loss of $25 million, based on a SportsBusiness Journal analysis of quarterly earnings filings by the team’s parent company.
Forest City Enterprises, the real estate company that owns nearly 25 percent of the franchise but is responsible for 51 percent of the team’s expenses, reported in a Sept. 9 filing with the Securities and Exchange Commission a $12.5 million net loss for the Nets franchise.
Because Forest City is responsible for 51 percent of the team’s expenses, the actual net loss translates to the $25 million over the six months ended July 31. For the same period last year, Forest City reported a $14.4 million net loss in its share of the Nets. No reason was given for the increased losses.
