Less than a day later, acting governor Donald DiFrancesco, sworn in after Whitman left for Washington to head EPA, disavowed the agreement, indicating that he wanted to review it and make his own deal. Now, the YankeeNets organization has decided to give the State until the end of this year to cut a deal on the financing.

"We're optimistic that we will be able to complete it," according to YankeeNets chairman Harvey Schiller. He won't comment on what would happen if nothing happens, although team officials have said in the past that out-of-state locations might be considered.

One trial balloon being floated by certain parties involved in the process would have the proposed arena owned by the YankeeNets but managed by the New Jersey Sports & Exposition Authority as a replacement for its 25-year-old Continental Airlines Arena. The latter would be razed (it's losing over $4 million a year even with the two teams as tenants) and the site would be redeveloped as a mixed-use site with emphasis on retail. The Newark Bears minor league baseball stadium, located near the proposed arena site, would also fall under NJSEA management, in one version of proposal being circulated.