Barclays Pledges Commitment To Nets' Arena, PGA Tour Event

Barclays' 20-Year, $400M Contract Allows It To Opt Out If Construction Not Started By January

Barclays President Bob Diamond Saturday said that the bank "remained committed" to its naming-rights agreement for the Nets' proposed arena in Brooklyn, according to Steve Politi of the Newark STAR-LEDGER. Barclays' 20-year, $400M title sponsorship contract allows the bank to opt out if construction does not start by December 31, but Diamond said, "We won't be walking away." He added that the arena "remains important for the company's profile." Diamond: "The original intent ... was branding. We wanted to continue to enhance the brand of Barclays and do something in New York." Diamond called the construction delays on the arena "agonizing and frustrating," but said, "I think we're in a good place now. ... We would have preferred it to be accelerated. But as a partner, we think Bruce Ratner did everything he possibly could do, and we're very strong partners with him." Diamond added that he "expected financing for the project would be 'set fairly soon.'" Diamond said that he has "seen the new design of the arena -- which has yet to be revealed to the public -- and while he preferred the original Frank Gehry-designed project, he was satisfied with the plans." The Nets replaced Gehry on the Barclays Center project with Ellerbe Beckett, and Diamond said, "We loved the iconic Frank Gehry building. But it is what it is. ... We've been through a hell of a two years in banking, so you couldn't have come to someone with a better understanding that the environment isn't what it was when we came in." The arena, once projected to cost over $1B, is now estimated at about $800M. Diamond said, "It will be led by Goldman Sachs and ourselves to raise the money. We've looked at the final designs of the building, and we think it's the 2011 season that it'll be open" (Newark STAR-LEDGER, 8/30).

PUTT FOR DOUGH: Diamond Saturday also said that he is not "reserving judgment" on the bank's title sponsorship of this past week's PGA Tour The Barclays. Diamond: "We didn't take any money from the government, but we're also quite cognizant of how the environment is. Clearly for the auto manufacturers, it's probably appropriate to reconsider (their golf involvement)." But he added, "We never second-guessed our strategy of being associated with golf. If there's a hidden benefit, I think as a sponsor I never felt more attention paid to me by the players and the Tour because I think they're recognizing (that) they might have taken for granted their sponsors for a number of years. But not right now" (Bergen RECORD, 8/30).