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Report: Barclays Center not making nearly as much money as expected

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It’s a little tough to judge the financials of the Barclay Center on its own — buildings tend to have much higher expenses the first year (marketing is higher, for example) plus the real purpose of the arena is to anchor a full scale commercial and residential development around it. The Atlantic Yards is what can make the developers — which now includes Nets owner Mikhail Prokhorov — money in the long run.

Still, in the short run the arena is not doing as well as expected.

That’s the report from the Wall Street Journal, with Nets Daily providing some detail for us.

Eliot Brown of the Journal writes that the arena will produce about $26 million in operating income in its first year, 2/3rds of the $76 million projected … and less than what the arena has to pay out to its bondholders.

Forest City Enterprises which owns 55 percent of the arena operating company attributes the shortfall to the opening costs, “to make a big splash in the first year, investing heavily in marketing, customer service and securing top acts,” writes Brown. Indeed, the arena has been the nation’s top grossing venue for concerts and family shows through the first three quarters of year one … and second in the world.

This will have no impact on the Nets — they are the star tenant of that building and Prokhorov is showing he is willing to spend on them.

He gets the big picture, that he’s going to make his money on the real estate end of this deal once the residential/commercial area of the Atlantic Yards takes off. The Nets are part of what makes that area attractive. He can afford a few losses along the way to get it up and running.

Report: Warriors center Anderson Varejao likely out for Olympics

LONDON, ENGLAND - JULY 31: Dan Clark #13 of Great Britain shoots over Anderson Varejao #11 of Brazil in the Men's Basketball Preliminary Round match between Great Britain and Brazil on Day 4 of the London 2012 Olympic Games at Basketball Arena on July 31, 2012 in London, England.  (Photo by Christian Petersen/Getty Images)
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Warriors center Anderson Varejao left his native Brazil to have his back examined in the United States before the Rio Olympics.

The prognosis doesn’t sound good.

Marc Stein of ESPN:

That’s a bummer for Varejao, who was clearly looking forward to playing in his home Olympics. At least Brazil still has plenty of talent — including Nene, Leandro Barbosa, Raul Neto and Marcelo Huertas — to compete for a medal.

The Warriors certainly hope Varejao heals in time for the season. They might have to depend on him to back up Zaza Pachulia if rookie Damian Jones isn’t ready and they want to limit the pounding Draymond Green takes at center.

Rudy Gay: Kings aren’t handling trade rumors right way

DALLAS, TX - MARCH 03:  Rudy Gay #8 of the Sacramento Kings during the first half at American Airlines Center on March 3, 2016 in Dallas, Texas.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Ronald Martinez/Getty Images)
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Rudy Gay has come up again and again in trade rumors.

The Kings forward doesn’t seem thrilled with that.

Gay, in a Q&A with Blake Ellington of Sactown Royalty:

You mentioned people are wondering if you are going to be here next season. I imagine you are like most of the guys in the league and try not to pay attention to that stuff, but do you pay attention to trade rumors and does it bother you?

I mean it’s been pretty loud as of late so it’s hard not to pay attention to it. I think it just goes to, I don’t know, I think there’s always ways to do things and in this situation I don’t think it’s going about the right way. No matter what your intentions to do with your players, I would think the first thing you want to do is make sure people are happy with what you are doing. That hasn’t been the case.

So you haven’t had much communication with the franchise as far as your future?

No, I haven’t. I’ve had communication, but not the kind of communication that I would say I like.

If you had your ideal communication situation, what would you like to hear from the franchise?

You don’t want to hear things on the internet, on Twitter. You would like to hear it from out of the horse’s mouth. Just be upfront with people, that’s all you have to do.

Toward the end of the last couple of seasons you have made it clear you don’t think the franchise has a direction. I assume you still feel that way. What do you think the direction of the team is right now?

I have no idea. I suit up and give it my all. That’s all I can do in this situation, that’s all you can do. Go out there and play as much as you can. Obviously, we don’t have anything to really build on. We have a new coach. I think that’s the only thing we can really build on. New coach and seeing how it plays out.

Remember, this is only Gay’s side of the story. The Kings might have a different point of view.

But after repeatedly putting players in unfavorable positions, Sacramento probably doesn’t deserve the benefit of the doubt.

Beyond communication issues, the Kings are likely having a tough time dealing Gay. He’s owed $13,333,333 this season and has a $14,263,566 player option for 2017-18. That’s not egregious, but it’s also not great value for someone who perpetually produces short of his athletic capabilities. Gay having Achilles surgery this offseason — revealed in the same interview — doesn’t help. He’ll turn 30 next month.

Sacramento, trying to win a reasonable amount as it opens a new arena, probably isn’t ready just to dump Gay and turn the small forward position over to Omri Casspi and Matt Barnes. Even if he’s just an average player, Gay can still help.

This is clearly an imperfect partnership between Gay and the Kings. But both sides might have to endure a little longer.

Sacramento — if nothing else, for the sake of its own reputation — should probably do more so Gay doesn’t feel like staying is such a burden.

Hornets sign undrafted Virginia center Mike Tobey

CHICAGO, IL - MARCH 27:  Mike Tobey #10 of the Virginia Cavaliers celebrates in the second half against the Syracuse Orange during the 2016 NCAA Men's Basketball Tournament Midwest Regional Final at United Center on March 27, 2016 in Chicago, Illinois.  (Photo by Jamie Squire/Getty Images)
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The Hornets are plenty deep at center with Cody Zeller, Roy Hibbert, Spencer Hawes and Frank Kaminsky.

Just in case…

Hornets release:

Charlotte Hornets General Manager Rich Cho announced today that the team has signed center Mike Tobey.

Tobey went undrafted after four seasons at Virginia then played well for the Hornets’ summer-league team. He’s a good offensive rebounder, and he has some touch with the ball. But his lack of length and athleticism really limit him.

There’s an outside chance Tobey competes with Aaron Harrison, whose salary is unguaranteed, for Charlotte’s final regular-season roster spot. Tobey’s standing and the Hornets’ center depth will work against him.

Most likely, this is just a way for Charlotte to stock its new D-League affiliate, the Greensboro Swarm. The Hornets can waive Tobey after training camp and assign his D-League rights to the Swarm. A partial guarantee on his NBA contract would probably entice him to join the D-League rather than play overseas.

Ex-Wizard Glen Rice Jr. charged with felony robbery, aggravated battery and possession of marijuana

WASHINGTON, DC - DECEMBER 02: Glen Rice Jr. #14 of the Washington Wizards looks to pass while being guarded by Solomon Jones #22 and E'Twaun Moore #55 of the Orlando Magic during the second half at Verizon Center on December 2, 2013 in Washington, DC. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Rob Carr/Getty Images)
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Glen Rice Jr. — the No. 35 pick in the 2013 NBA draft — continues his fall.

He spent a couple years with the Wizards, got waived and then was shot and arrested in a single incident.

Now, he faces more charges.

TMZ:

the 25-year-old was arrested for robbery Monday morning in Georgia … less than a year after he was shot in a bizarre gunfight at T.I.’s restaurant.

Here’s what we know … Rice was booked at 6:37 AM this morning for felony robbery, aggravated battery and possession of marijuana. He has since been released from custody.