NJ Nets sold for $300 mil.

[Young Drachma]

From the NY Times
January 22, 2004
Nets Are Sold for $300 Million, and Dream Grows in Brooklyn
By RICHARD SANDOMIR and CHARLES V. BAGLI

ruce C. Ratner, the developer who wants to move the New Jersey Nets to downtown Brooklyn, reached an agreement yesterday to buy the team for $300 million, defeating a similar offer by Charles Kushner and Senator Jon S. Corzine, the team said.

There is no guarantee that Mr. Ratner will be able to fulfill his vision in Brooklyn, where sports fans are still haunted by memories of the Dodgers' departure to Los Angeles after the 1957 season. The arena would be built on the same site the Dodgers were rebuffed from buying.

Mr. Ratner faces numerous obstacles, including having land condemned and having railroad tracks moved, before he can move the Nets to Brooklyn when the team's lease at Continental Arena expires in 2008.

But the first step in building a new arena for the Nets is complete: the purchase of the team. Without the team, Mr. Ratner has said, the $2.5 billion commercial and residential complex designed by Frank Gehry, with the Nets' arena as the centerpiece, would be dead.

Edwin Stier, president of the Nets' ownership group, Community Youth Organization, said: "We're in the final stages of negotiating an agreement with Bruce Ratner. The contract terms have been finalized and we're putting the paperwork together."

For most of the past week, Mr. Ratner and Mr. Kushner were able to examine long-withheld and detailed financial records about the team, allowing them to form substantial, final bids.

On Monday, Ratner formalized his month-old $300 million bid and negotiators began to clarify the elements of his offer, including the long-term salary obligations he would assume.

On Tuesday, Mr. Kushner presented two offers: one, of $267.5 million in cash, and a second, consisting of $200 million upfront and $100 million over several years, one official involved in the negotiations said. But that was considered inadequate, and the decision was made to complete the deal with Mr. Ratner.

Despite Mr. Kushner's willingness yesterday to raise his offer to $300 million upfront, the Nets and their negotiators decided that they had finished their contract with Mr. Ratner and chose not to consider Mr. Kushner's final bid.

"He just wasn't there," one executive who has been briefed throughout the talks said of Mr. Kushner. "Ratner wanted this thing so bad, he did what it took to get it."

Bob Sommer, a spokesman for Mr. Kushner, a Florham Park, N.J., real estate developer, said, "Charlie Kushner bid $300 million in cash today to keep this team in New Jersey and is disappointed in the result."

The C.Y.O. board agreed to the deal's terms, and the contract now goes for approval tomorrow to YankeeNets, the holding company for the Nets and the Yankees, which is on the verge of being dissolved. Approval is also needed from three-quarters of the teams in the National Basketball Association to buy the franchise and a simple majority to move it.

A move to Brooklyn would mean another move for the peripatetic franchise. It began life as the New Jersey Americans of the American Basketball Association in Teaneck, N.J., then played in Commack, N.Y.; West Hempstead, N.Y.; Nassau Coliseum in Uniondale, N.Y.; Piscataway, N.J.; and finally found permanence in 1981 when it became a tenant of what is now Continental Arena.

The Nets have often struggled on the court but won the Eastern Conference championship the past two seasons. Still, the Nets are next to last in average attendance among the N.B.A.'s 29 teams this season.

The team's value has exploded since Roy Boe paid $1.1 million for the A.B.A. franchise. At $300 million, the price represents a doubling from what Community Youth Organization, led by Raymond Chambers and Lewis Katz, paid for it in 1998, a year before they merged it with the Yankees into YankeeNets. But it ranks behind the record $360 million paid in 2002 for the Boston Celtics.

The sale to Mr. Ratner, whose company is also the development partner of The New York Times Company in a new building for the newspaper's headquarters, culminates a six-month process.

First there were three bidders: Mr. Ratner, who started at $275 million; the Kushner group, which includes Mr. Corzine, the United States senator from New Jersey, and which opened at $250 million; and Charles B. Wang, the co-owner of the Islanders, at $265 million. They were later joined by Stuart Feldman, a venture capitalist who never publicly discussed his $257.5 million offer or his intentions for the team. Mr. Wang dropped out in frustration with the process, and Mr. Feldman was never a serious competitor.

The effort to sell the Nets has been marked by recriminations between owners of the Yankees and the Nets, as well as among Nets owners themselves.

"It took so long because the personality clashes at YankeeNets created an untenable situation," said Joseph Ravitch, a managing director of Goldman Sachs, one of the team's investment bankers. "The agreement reached in December to separate C.Y.O. from Yankee Holdings was a critical step in expediting the sale of the team."

Community Youth Organization bought the Nets with the idea of moving them to Newark to help revive its economy. Mr. Katz and Mr. Chambers pledged to pour the profits into a newly formed charity. But the team lost tens of millions of dollars and failed to complete a deal for an arena in Newark, leading to a split between Mr. Chambers and Mr. Katz and ultimately the decision to sell.

Earlier this week, George Zoffinger, president of the New Jersey Sports and Exposition Authority, which owns Continental Arena, criticized Mr. Katz and Alan Landis, another Nets owner, and vowed to block Mr. Ratner from taking the Nets name to Brooklyn.

"We think a lot of N.B.A. owners are going to want to be in this market," he said. "I suggest Ratner name the team after himself: the Brooklyn Rats. Katz and Landis will fit right in."

In the final stages of their partnership, Nets owners refused to provide bidders with access to financial information necessary to assess the team's value until they were assured last month that YankeeNets would adopt a plan to dissolve, an official involved in the negotiation said.

The Ratner group, whose partners include the hip-hop entrepreneur Jay-Z and Vincent Viola, chairman of the New York Mercantile Exchange, has been trying to create a proposal that would encounter little resistance from government officials and community opponents. Mayor Michael R. Bloomberg has been an enthusiastic supporter of the project, but the administration of Gov. George E. Pataki has been been relatively quiet.

A top state official said the governor did not want to be accused of poaching on New Jersey assets and was concerned about the growing list of teams seeking hundreds of millions of dollars in state subsidies for new arenas and stadiums, including the Jets, the Yankees, the Mets, the Knicks and the Rangers.

The project has been embraced by many Brooklyn politicians as the antidote to the loss of the Dodgers and as the crystallization of the borough's economic comeback.

But Patti Hagan, a leader of the Prospect Park Heights Coalition, said he would eliminate 237 jobs and homes for 864 people.

"This is an example of developer imperialism," she said. "The emperor has decided to take over 10 acres of private property and abolish all the jobs and homes that exist here. Mr. Ratner should know he has a fight on his hands. We will not give up or go away."

In addition to community opposition, Mr. Ratner faces extensive attendance and revenue losses while the team stays in New Jersey before the move to Brooklyn.

Dean Bonham, a sports industry analyst, said: "There is no magic solution to keeping fans in the Meadowlands when you're potentially heading for Brooklyn. But I would deliver the message that a new era for basketball is dawning in New York, he's building a state-of-the-art facility and if you want to be part of something new and fun, come participate with us."

[Young Drachma]

I'm tired of hearing this crap about how New Jersey won't support its team. Its not that at all. People obviously have money. But the arena is in the boons ,closer to New York for practical reasons (for the Giants and Jets fans, mostly).

The fact is, the Newark arena would've worked, but lost political support because there are people in the state who have no desire to see the largest city in the state revitalize itself. They don't care about "those people" and would rather boost their own agendas.

I mean, its just a sports team at the end of the day - not life or death - and we're not talking about the Cleveland Browns or anything, with some long history. But it really sucks when a team that was bad for so long finally makes good and then decides to abandon the people who helped support it when no one cared.

Now go ahead, make the Jersey jokes.

[Franklinnoble]

Are they going to leave Jimmy Hoffa under the old arena, or will he be moving to Brooklyn as well?

[General Mike]

Are they going to leave Jimmy Hoffa under the old arena, or will he be moving to Brooklyn as well?

He is not under the arena. He is under Giants Stadium. This is common knowledge.

As far as political agendas in the state of New Jersey go, they are as bad as anywhere. I agree, that an arena in Newark, on top of Newark Penn Station would have been the perfect spot, just like MSG being on top of New York's Penn Station is the perfect spot. I feel awful about this situation. I did laugh at the following comment tho:


Earlier this week, George Zoffinger, president of the New Jersey Sports and Exposition Authority, which owns Continental Arena, criticized Mr. Katz and Alan Landis, another Nets owner, and vowed to block Mr. Ratner from taking the Nets name to Brooklyn.

"We think a lot of N.B.A. owners are going to want to be in this market," he said. "I suggest Ratner name the team after himself: the Brooklyn Rats. Katz and Landis will fit right in."

[cthomer5000]

Because they're moving to Brooklyn (as opposed to NYC), it pretty guarantees they lose their entire Jersey fan base. NYC fans can still take a subway or bus... but no one from jersey is heading out to Brooklyn to watch a game.

[corbes]

I just think the name Brooklyn Nets sounds cool.

[cthomer5000]

I just think the name Brooklyn Nets sounds cool.

i think any basketball team named the "nets" is incredibly lame.

It's like a team being called the "balls" or "uprights" in football.

[Young Drachma]

I dunno, the "Nets" name, especially since in recent years they've gone ahead and done something with the whole vintage logo thing, will actually work well.

If anything, the jerseys with Brooklyn on the front will sell like hotcakes. As much as I loathe the idea of the team moving, I'd love to see a vintage looking Brooklyn jersey, because that would be nice.

I don't think Brooklyn doesn't deserve a team. I just hate that it has to be the team from my home state, especially since we had to endure them for all the years they sucked so bad.

But I'm glad someone recognizes that the political agendas are b.s. and that's the reason the team will likely move - not because of any lack of interest from Jersey fans.

[corbes]

i think any basketball team named the "nets" is incredibly lame.

It's like a team being called the "balls" or "uprights" in football.


But yet better than the Texans, which is like being named the Philadelphia Pennsylvanians, or the Jacksonville Floridians.

But the Jacksonville Fluoride, now that would be a name.

[Young Drachma]

But yet better than the Texans, which is like being named the Philadelphia Pennsylvanians, or the Jacksonville Floridians.

But the Jacksonville Fluoride, now that would be a name.

Here is a good article (http://www.politicsnj.com/adubato071802.htm) that explains the reason for the Newark arena deal dying.

This article talks about (http://www.c-n.com/news/c-n/story/0,2111,892620,00.html) all those Jersey fans who never go to games and are glad to see the team leave the state.

[Bonegavel]

but the Houston Texans sounds much better than Philadelphia Pennsylvanians.

[cthomer5000]

This article talks about (http://www.c-n.com/news/c-n/story/0,2111,892620,00.html) all those Jersey fans who never go to games and are glad to see the team leave the state.

Without reading this article, my guess is it mentions the fact that there is no mass transit to the meadowlands. How these geniuses haven't realized this is a huge problem after 20 years is beyond me.

You really have to own a car or bend over backwards (go to NYC, then come back to the meadowlands by bus) to get to the complex.

Personally, I couldn't care less that they're leaving, because it isn't football.

[corbes]

Here is a good article (http://www.politicsnj.com/adubato071802.htm) that explains the reason for the Newark arena deal dying.

This article talks about (http://www.c-n.com/news/c-n/story/0,2111,892620,00.html) all those Jersey fans who never go to games and are glad to see the team leave the state.

Don't know why that was directed at me, as I was just being silly.

I think the Nets will be a stronger franchise, with a stronger identity, in Brooklyn. Now, by stronger, I don't necessarily mean their on-the-court performance -- more like their overall franchise value.

New Jersey's an interesting state. The southern half of the state is "associated" with Philadelphia, and the northern half is "associated" with New York. But there's other people in the state who are proud not to be associated with either, and seem to derive some sense of identity from that independence.

And on that level, it doesn't make a lot of sense to have a "New Jersey" team. To me, anyhow.

[corbes]

but the Houston Texans sounds much better than Philadelphia Pennsylvanians.

Just as the Brooklyn Nets sounds much better than the Philadelphia Uprights.

Touche.

[KevinNU7]

But what about the Philadelphia Pylons?

[corbes]

Well, you have to be creative.

For example, you can see that they chose the Philadelphia Flyers instead of the Posters, or the Advertisements, or the Handouts.

[cthomer5000]

New Jersey's an interesting state. The southern half of the state is "associated" with Philadelphia, and the northern half is "associated" with New York. But there's other people in the state who are proud not to be associated with either, and seem to derive some sense of identity from that independence.

I live, and have always lived in New Jersey. Aside from Northwest Jersey, the place is pretty much one large suburb of Philly or New York. The people who live in the state are from all over, and i don't know anyone personally strongly identifies with the state. If you live here, you're probably on your way from (or to) somewhere else. I don't know if it'll ever be an ideal sport state, because any city worthy of housing a team is so close to Philly or NYC that it might as well just be there. The Nets could have survived here, but I don't blame them for moving.

Much like the Nets, I can't wait to get the hell out of here.

[corbes]

I live, and have always lived in New Jersey. Aside from Northwest Jersey, the place is pretty much one large suburb of Philly or New York. The people who live in the state are from all over, and i don't know anyone personally strongly identifies with the state. If you live here, you're probably on your way from (or to) somewhere else. I don't know if it'll ever be an ideal sport state, because any city worthy of housing a team is so close to Philly or NYC that it might as well just be there. The Nets could have survived here, but I don't blame them for moving.

Much like the Nets, I can't wait to get the hell out of here.

I had in mind people from places like Red Bank, and year-round residents of the shore. I didn't want to offend them.

But good point about the transient nature of NJ residents.

FWIW, I've always considered the Nets and the Devils to be "essentially" New York teams.

[cthomer5000]

I had in mind people from places like Red Bank, and year-round residents of the shore. I didn't want to offend them.

But good point about the transient nature of NJ residents.

FWIW, I've always considered the Nets and the Devils to be "essentially" New York teams.

Nets yes, but Devils no. I really think they are a NJ team with an NJ fanbase. No way they've stolen and NY fans with the Rangers and Islanders already taking them.

[corbes]

Nets yes, but Devils no. I really think they are a NJ team with an NJ fanbase. No way they've stolen and NY fans with the Rangers and Islanders already taking them.

Fair enough. I'm moderately ignorant about hockey.

So, are the Devils a viable "New Jersey" team?

[cthomer5000]

Fair enough. I'm moderately ignorant about hockey.

So, are the Devils a viable "New Jersey" team?

I'm also ignorant about hockey. There ticket prices are obscene, but i'm not sure if this is all of hockey. They definitely sell out playoff games, but I wouldn't be surprised if their average home attendance for the regular season was less-than-impressive.

I think if any team wants to give Jersey a fair shake, we at least need to be able to take mass transportation to the games... it simply isn't an option as is.

[Jon]

I live, and have always lived in New Jersey. Aside from Northwest Jersey, the place is pretty much one large suburb of Philly or New York. The people who live in the state are from all over, and i don't know anyone personally strongly identifies with the state. If you live here, you're probably on your way from (or to) somewhere else. I don't know if it'll ever be an ideal sport state, because any city worthy of housing a team is so close to Philly or NYC that it might as well just be there. The Nets could have survived here, but I don't blame them for moving.

Much like the Nets, I can't wait to get the hell out of here.


Where in New Jersey do you live? I disagree with your idea that the state is one suburb of Philly or New York. Central Jersey has a strong New Jersey identity and I think that's where most of the "natives" end up. And they won't support a team b/c they view the Meadowlands teams as really New York teams, which is likely true since that's why they play there.

[Jon]

I'm also ignorant about hockey. There ticket prices are obscene, but i'm not sure if this is all of hockey. They definitely sell out playoff games, but I wouldn't be surprised if their average home attendance for the regular season was less-than-impressive.

I think if any team wants to give Jersey a fair shake, we at least need to be able to take mass transportation to the games... it simply isn't an option as is.

Sorry about the double posting ... what I've heard from insiders is that there are certain people that don't want mass transit to the Meadowlands for the same reason they don't want a stadium in Newark or increased rail traffic in some of the "outlying" parts of central jersey. They don't want to mess with the people there. It's kind of like Phil Graham's efforts to keep the DC Public transportation system out of Georgetown. People are afraid that it would be easier to take mass transit to burgle.

[cthomer5000]

Sorry about the double posting ... what I've heard from insiders is that there are certain people that don't want mass transit to the Meadowlands for the same reason they don't want a stadium in Newark or increased rail traffic in some of the "outlying" parts of central jersey. They don't want to mess with the people there. It's kind of like Phil Graham's efforts to keep the DC Public transportation system out of Georgetown. People are afraid that it would be easier to take mass transit to burgle.

mess with the people where? there is no-one living in the meadowlands! It's highway upon highway as is... would a traing running from newark to the meadowlands really bother anyone? new train stations have been popping up like mad recently... i just can't comprehend how the meadowlands themselves hasn't offered to pay for a train line from east rutherford to newark.

[cthomer5000]

Where in New Jersey do you live? I disagree with your idea that the state is one suburb of Philly or New York. Central Jersey has a strong New Jersey identity and I think that's where most of the "natives" end up. And they won't support a team b/c they view the Meadowlands teams as really New York teams, which is likely true since that's why they play there.

I live in Central Jersey. I guess you and I live in different (cultural) Jerseys.

[General Mike]

Fair enough. I'm moderately ignorant about hockey.

So, are the Devils a viable "New Jersey" team?

I'd say so, but they are in the same arena position as the Nets. It's one of the reasons I wont go to the game. When all is said and done, and the YankeeNets breakup is finished, the Devils will be in Louisville or Hartford or Seattle or some other god forsaken town and then New Jersey will have nothing to call their own.

[corbes]

Ironically, you talk about leaving the Meadowlands to go to a "god forsaken town". ;)

[wbatl1]

What's really sad is that the Atlanta Hawks, Thrashers, and their Arena(Phillips), are in the process of being sold for 250 million. OH how it is to have a winning franchise.

[Jon]

mess with the people where? there is no-one living in the meadowlands! It's highway upon highway as is... would a traing running from newark to the meadowlands really bother anyone? new train stations have been popping up like mad recently... i just can't comprehend how the meadowlands themselves hasn't offered to pay for a train line from east rutherford to newark.


The fear is that the people that live in Newark will travel to the other parts of the state, particularly those areas connected to East Rutherford, rob them, and jump back on the train to Newark. That's why the Rutherford small rail system is not connected to Newark. This has come out in public hearings on the issue.

[cthomer5000]

The fear is that the people that live in Newark will travel to the other parts of the state, particularly those areas connected to East Rutherford, rob them, and jump back on the train to Newark. That's why the Rutherford small rail system is not connected to Newark. This has come out in public hearings on the issue.

While people thinking that might be true, I can't see that as the main reason. I'm guessing the state doesn't see the point, and the meadowlands won't put out the money themselves.


I'm talking about creating a stop that literally runs only to the meadowlands. Shit, they already use that lot for park & ride transit... it would be perfect. Have a path train run from Newark to East Rutherford and nowhere else. It would make mass transit plausible for anyone in NJ, and those coming from NYC can still come by bus, or take the train to Newark and transfer.

I know it will likely never happen... but IMHO it's a big mistake. Also, since the Jets and Giants are basically sold out until the end of time... they probably see no need to do this. It would have/could have helped the Nets and Devils an incredibly amount.

[Young Drachma]

While people thinking that might be true, I can't see that as the main reason. I'm guessing the state doesn't see the point, and the meadowlands won't put out the money themselves.


I'm talking about creating a stop that literally runs only to the meadowlands. Shit, they already use that lot for park & ride transit... it would be perfect. Have a path train run from Newark to East Rutherford and nowhere else. It would make mass transit plausible for anyone in NJ, and those coming from NYC can still come by bus, or take the train to Newark and transfer.

I know it will likely never happen... but IMHO it's a big mistake. Also, since the Jets and Giants are basically sold out until the end of time... they probably see no need to do this. It would have/could have helped the Nets and Devils an incredibly amount.

Exactly my point. The Meadowlands are in the boons. But no one - even the Bergen county pols - wanted to really see the thing work. They were too busy sipping lattes and driving their SUVs and fucking up the environment.

I know civic pride is probably overrated, but I really think its a shame that a state that per capita is the richest in the nation, loses its sports teams.

And the comment about there being no real "Jersey pride" people is crap. There are tons of folks in the state - not NY or PA transplants - who have tons of Jersey pride.

That's all media hype that has been promulgated by the NY dominated and sympathic media who want to see the team move because they don't think Jersey is "deserving". I tell you what, all those fans at Giants Stadium aren't New Yorkers, that's for sure.

Somehow, I think this deal might not be done yet. That arena in Brooklyn is gonna take hell to build and I don't necessarily see it working out as cleanly as they might think.

[ISiddiqui]

Ugh... if the Nets move to Brooklyn no way I'm rooting for them ever again. They are Jersey's team, dammit!

And GOOD point about the fans at Giants Stadium. Most of them are Jersey guys and you can tell who they are. Culturally, Jersey is very distinct from NY and Philly (aside from the cities right next to them (ie, Hoboken, Jersey City for NY; Cherry Hill, Camden ;) for Philly). Central Jersey has its own flair (home to the 'Sopranos' type and the rich folk in Sussex Cty). Northwest Jersey is all horse farms and country. The Shore is an interesting melting pot, which considers itself far away from both NY and Philly, and Southwest Jersey is just Pine Barrens and boonies.

They may root for Philly or NY teams, but that doesn't mean they are not distinct from those cities. That'd be like saying someone from Albany who was a Giants fan is basically, culturally a New York City-er.

[BigJohn&TheLions]

The Brooklyn Nets. Or is it The Brooklynettes. Good thing they didn't change the name to "Swamp Dragons" a few years back...

[Young Drachma]

The Brooklyn Originals.

Incorporate the Brooklyn bridge into the logo and make it retro looking. That could be nice.

[Young Drachma]

Here is what they're going to do with the Meadowlands site once the sports teams move.

http://www.findarticles.com/cf_dls/m0EIN/2003_Feb_12/97493701/p1/article.jhtml

It's called Meadowlands Xanadu and will include a whole bunch of crap, including the first Indoor Alpine Ski resort in the US, extreme sports park, minor league baseball stadium

http://www.meadowlandsmills.com/media.html

Now what I say is - this is dandy and wonderful. But what about the investment lost from the sports teams? More important, why couldn't we have the Newark arena and this? Apparently, it might happen. The Devils are asking for their Newark arena

http://www.nj.com/devils/ledger/index.ssf?/base/news-13/1074841082123260.xml

[ISiddiqui]

I bet the Devs get their Newark Arena after this. I mean if the Nets move, then NJ will have to get on the ball because it would be VERY bad for the state to let its 3 time championship winning team move and change its name. The Nets are one thing, the Devils are something more entirely.

[sterlingice]

It's just going to be another second class team in New York like the Mets or Giants. The media focus will still be on the Knicks.

Hmm... the "Brooklyn Nets" does have a nice ring to it, tho. And, c'mon, whoever was bitching about sports nicknames, that's just stupid. Sure, the Texans sounds bad. But how is complaining about the "Nets" as a name because it's sporting equpiment any dumber than complaing about calling a team the "Lions" because animals can't play football.

SI

[Super Ugly]

Forget about sports teams moving to Newark. When is Camden going to get some love? I'm taking my next holiday there, for sure ...

[General Mike]

It's just going to be another second class team in New York like the Mets or Giants.

You've got it backwards, the Jets are the 2nd class team, if anything. I'd say they are basically even fanbase wise tho.

[sterlingice]

You've got it backwards, the Jets are the 2nd class team, if anything. I'd say they are basically even fanbase wise tho. I always got the impression that the Jets were the stylish, trendy, vapid New York team that's all flash like the Yankees and Knicks and Rangers.

EDIT: Sure, the Yankees have some rings, but, really, their existence is also predicated on being on the front page of the New York papers

SI

[Neuqua]

I like Kerry Kittles.

[General Mike]

I'd say both the Jets and the Giants have evenly sized fanbases. It all depends on who is playing better football. The Giants have clearly had more success the last 20 years tho.

[ISiddiqui]

Yep... the Giants are much more New York / New Jersey's team. Even if the Jets started going on a tear, however, I'd think Giant fans would outnumber Jets fans (from what I remember). Though it could be because of the Superbowls won in the Parcells' era, compared to the Jets' lack of sucess.

[SunDancer]

Another NBA article talks bout Mark Cuban and the Kings owner want to see a franchise in Vegas.

[corbes]

Just thought I'd update this, as the NJ Devils made a deal for a new arena in Newark. Here's a link from the Philly Inquirer. There's probably a better story elsewhere.

http://www.philly.com/mld/inquirer/sports/7915368.htm

NEWARK, N.J. - The owners of the New Jersey Devils have agreed to relocate the team to Newark, in a new arena that would be completed for the start of the 2007-08 season, according to a letter released by the city yesterday.

The letter to Newark Mayor Sharpe James and signed by Devils president Lou Lamoriello was faxed to the media. It said, in part: "It is with great pleasure that the New Jersey Devils send you this letter of intent for the relocation of the Devils to Newark."

"This is the right move, for the Devils, our fans, and for the state," Lamoriello said.

The Devils share the Continental Airlines Arena in East Rutherford with the NBA's Nets, who were recently sold to a group that hopes to move them to Brooklyn, N.Y.

The Devils have played in Bergen County's Meadowlands complex since moving from Denver in 1982, winning Stanley Cups in 1995, 2000 and last year. This time, they will be moving approximately eight miles.

The decision to relocate the Devils was the result of "months of discussion," the release said. The 18,000-seat arena would be a part of a mixed-use redevelopment plan including an office building, a parking garage for 1,340 vehicles, and a 300-room hotel.

The facilities are to open by July 1, 2007.

The statement does not detail who will pay for the arena or how much it will cost. Micah Rassmussen, a spokesman for Gov. McGreevey, declined to comment on the deal.

A joint news conference with Newark and Devils officials is scheduled for Thursday.

[General Mike]

This is bullshit. They lose the Nets and they know they can't lose both teams so they decide to finally build the arena. Bullshit.

[Young Drachma]

Nah, its not bullshit. Newark wanted the arena a long time ago and if they had the control over it, they'd be able to get it. But unfortunately, there is lots of rankling in the state over some pretty plain issues:

1) The arena the Devils and Nets are vacating in East Rutherford, NJ are opposed to their arena being closed, for the same reason the folks in Newark want an arena. The economic impact of having it there far outweighs the costs.

2) The difference is, the state owns the arena up there. It's outdated, but they're willing to build this complex with indoor alpine skiing and all that, because they're trying to attract a clientele that they think they want - that is, white folks with money. The perception is - and most stories will try to find someone who says this - that white folks don't want to travel to downtown Newark, despite its revitalization. Sure, its got issues. But these are the same people who don't think twice about going to NYC on a regular basis. Crime rate wise, they've got more to worry about there than they do in Newark.

3) New Jersey suburban folks are unlike any folks anywhere else in the country, in that, they don't care about their largest city. They keep moving to rural and once uninhabited parts of the state to avoid anything resembling what they view as crime and well, unsavory - even if its more myth than actual fact.

That said, it doesn't matter and the arena deal is more likely to happen at some point. The issue is what kind of deal gets cut, since the Governor basically owes his election to Newark Mayor Sharpe James.

So, its hardly over yet. Especially if the Nets don't get their Brooklyn arena.