Hollywood New Century

In December 2007, neither the Federal Reserve nor the US Treasury could save the bursting of the US housing bubble.

Fannie Mae and Freddie Mac’s stock prices have fallen by half of their original value to around $35. The pale government declaration cannot save the downturn in the real estate market; central banks’ funding to save the world is still a drop in the bucket, and the volume bound by the real estate bubble is too large. big.

Institutions of Wall Street shorting real estate loan companies have begun to emerge. The Paulson Fund, the Nine-headed Bird Fund and a special fund under Goldman Sachs are the largest in capital.

Paulson's private equity fund, in particular, currently manages more than $27 billion in assets, followed by the leveraged nine-headed bird fund. A special fund owned by Goldman Sachs has invested almost $4 billion in capital.

In Lower Manhattan, Tribeca neighborhood, Star Records headquarters, Simon sat in the boss chair, holding the information of the owners of the NBA Warriors and the New Jersey Nets.

Golden State's majority shareholder, Chris Cohan, owns Sonic Communications, which cost $119 million to acquire an 80 percent stake in the Warriors in 1995. However, Chris Cohan has no intention of selling the team. After the eight miracles before the Warriors, they were silent again!

Chris Cohan himself is not a real estate company, and this guy is not short of money now. It seems that buying the Warriors will have to wait until the guy wants to sell. Of course Simon can't wait.

The owner of the New Jersey Nets is now Bruce Ratner, a member of the controlling family of Forest City Real Estate Group, who also founded Forest City Ratner Real Estate.

As one of the largest real estate developers in New York, Forest City has developed many projects. In 2004, Bruce Ratner spent 300 million US dollars to buy the Nets, and he planned to move the Nets to Brooklyn, New York, and built a new stadium as the Brooklyn Atlantic Plaza. the most important part of the plan.

Simon picked up the phone and called Nancy Davis and asked, "Nancy, you told me earlier that the land at 68 Leonard Avenue in Tribeca is the property of the Forest City Ratner Group?"

"Yes, Forest City has developed a lot of projects, and less in Manhattan, but the Times Building near Times Square is the industry developed by Forest City, and the land you are looking at in Tribeca is indeed their industry, 911 It was acquired by Forest City," Nancy Davis explained over the phone.

"Recently, the Forest City Ratner Group has had a big problem financing its Atlantic Plaza plan in Brooklyn?" Simon laughed.

"Yes, Bruce Ratner's acquisition of the New Jersey Nets is for this project. Atlantic Plaza plans to have a budget of $1 billion to build a commercial office, leisure and entertainment business district centered on the Nets' new home stadium. You know the current situation. Now, the New Jersey side doesn’t want the Nets to leave, and the Brooklyn side resists the impact of the new project development, and they don’t believe the Atlantic Plaza project will be successful until the new stadium is built,” Nancy Davis continued to explain,

"However, it doesn't matter. The Nets left New Jersey and came to Brooklyn without breaking Bruce Ratner, and it's not a problem for Brooklyn residents to object. After all, this project was developed with the participation of the New York City government! And the Forest City Group is in Government departments are very connected and have a lot of political capital;”

"The most important thing is capital. You are also aware of the current real estate market situation. Forest City Group itself has lost a lot of money. Attracting external funds into the Atlantic Plaza project is the most important thing!"

Simon pondered while listening. In September 2009, Russian billionaire Mikhail Prokhorov paid $223 million in cash and repaid $160 million in team debt, for a total of $383 million from Bruce. Ratner buys an 80% stake in the Nets and a 45% stake in the team's new stadium, Barclays Center! After the financial tsunami, it can be regarded as Mikhail Prokhorov's support for the Atlantic Plaza project, and the Russian rich Mikhail Prokhorov also intervened in the Atlantic Terminal project, strengthening the Russian basketball system and The connection to the NBA.

Just six years later, Mikhail Prokhorov acquired the other 20% of the Nets and the remaining 55% of Barclays Center. Prokhorov spent $1 billion.

Of course, in 2015, the NBA market was not the same as it was in 2009. The new broadcast agreement and successful marketing are no longer the same value.

"Understood, contact Bruce Ratner of Forest City Group, Xinghai Entertainment hopes to develop a complex on Leonard Street in Tribeca," Simon smiled and said, Xinghai Entertainment intervened, or it is now in the limelight Is the Jin's Nine-headed Bird Fund involved? Bruce Ratner still hasn't caught this life-saving straw?

The Nets' current results are not very good. They entered the playoffs last season, but they should not be able to enter this season. The continuous loss from 2004 to the present, Bruce Ratner is also very uncomfortable, after all, it is mainly for the construction of the Atlantic Plaza project.

"Simon, are you just for the construction of the Xinghai Building in Tribeca District?" Nancy Davis felt that it was not easy. Now Forest City Group is mainly looking for investment for the Atlantic Plaza project. Simon Pike is now saying that it will be in Tribeca District. Building a new skyscraper, or in the current housing bubble, isn't that sending a message?

"Nancy, Nets, Forest City Group's first step in the Atlantic Plaza project is that the New Jersey Nets can successfully relocate to Brooklyn, New York. I have no interest in the Atlantic Plaza project, but I want the Nets and the new sports Center," of course, as to whether it will be called the Barclays Sports Center at that time, it will depend on whether Barclays Bank's naming fee can satisfy you.

"Understood, in fact, Bruce Ratner has no intention of running the team. Everyone knows that the purpose is only to develop real estate projects. As long as the Nets' gym is in Brooklyn, the Atlantic Plaza project can continue. The Nets' management Kwon, I don't think Bruce Ratner would care," Nancy Davis said, after all what time is it? Such an important capital injection is too important for Forest City Group!

"Well, when the time comes, Bruce Ratner will also meet with me. It's good for you to contact me first." Simon's condition is, of course, the controlling stake of the Nets and the new stadium, 80% Of course, it is impossible for the Nets and 45% of the new stadium shares. Too few, Simon is not a Russian, what basketball system needs to be established, and other aspects are not too demanding!

The Nets are the first piece of Simon's sports and entertainment empire.