Wang looking to sell majority stake in Islanders

[ThomasTomasz]

As the Islanders are about to enter an era of transition with a move to Brooklyn looming in 2015, it sounds like that might not be the only change coming. Late Thursday night, Bob McKenzie of TSN dropped this nugget:

Chris Botta of Sports Business Journal and a former Islanders employee got Wang on the record to confirm he is having talks to sell the club.

Wang further clarified in a statement released through the team on Twitter.

"In recent months, there have been numerous expressions of interest in the purchase of the New York Islanders," Wang said. "As I have consistently stated, I have been and remain willing to listen. However, potential buyers expressions of interest in the team or even my listening to them does not mean that any deal will be reached."

Islanders fans' ears probably perked up a bit after hearing that news. Charles Wang has been involved with the club since 2000 when he became part-owner. In 2004, he bought out his partner to become majority owner of the club. The years since have been one disaster after another from bad contracts to unsuccessful bouts with local government to a lot of losing hockey.

The club has made the playoffs just twice in the Wang era and has been hemorrhaging money, an estimated $10 million per season. The club is also due to repay a $75 million loan at the end of this season according to the New York Post.

The 69-year-old owner certainly hasn't had an easy go of it over the years, some of that being self-inflicted. However, with a bright prospect pipeline, a budding star in John Tavares and the pending move to Brooklyn, the Islanders may not be so terribly unattractive to potential buyers. It's not an easy sell, but possibly not as tough as a few years ago.

Wang has talked about selling the team in the past, but it sure seems like a distinct possibility this time around with a new home secured. Even if there is a long way to go as Wang says, there's movement.

http://www.cbssports.com/nhl/eye-on...r-charles-wang-looking-to-sell-majority-stake

 

[Ravin]

So the Islanders are for sale?

 

[ThomasTomasz]

Charles Wang has owned the New York Islanders since 2000 but that could be changing soon. It came out a couple of weeks ago that he was interested in exploring a sale of the franchise. There weren't many details beyond that.

NHL commissioner Gary Bettman confirmed earlier this week that Wang is exploring the possibilities but right now nothing is imminent. Again, not much in the way of details.

A few of those details have been filled in thanks to a memo found by Chris Botta of Sports Business Daily.

In the memo, Islanders owner Charles Wang offers 75 percent ownership of the club, with a five-year option on the other 25 percent. The memo also states that the Islanders sustained an operating loss during the 2013-14 season of $4.8 million, with the loss minimized greatly by $15 million received from NHL revenue sharing and escrow payments.

According to the memo, total revenue for the Islanders in the just-completed season was $84 million. That included $22 million in ticket revenue. The Islanders played 40 home games at Nassau Veterans Memorial Coliseum and one game (as part of the NHL's Coors Light Stadium Series) as the home team at Yankee Stadium against the New York Rangers.

The value placed on the team in the memo: $370 million.

Considering that Forbes valued the Islanders at $195 million in 2013, that seems like a pretty high price but remember the Islanders are going to move to Brooklyn after next season and that should be an ultimately profitable move.

While there still doesn't appear to be anything close to actually happening, it does sound like Wang is serious about possibly selling.

http://www.cbssports.com/nhl/eye-on...t-at-370-million-wang-offering-majority-stake

 

[leaffan]

Will be interesting to see what a new buyer does. Operating at a loss that small almost has to look promising (compared to other years) for a perspective new owner. Yashins cap hit is set to come off next season (finally after all these years) and if someone is looking to spend they are going to have a decent system to build with.

 

[leaffan]

Fairly shocking stat posted here today:

 

[ThomasTomasz]

Will be interesting to see what a new buyer does. Operating at a loss that small almost has to look promising (compared to other years) for a perspective new owner. Yashins cap hit is set to come off next season (finally after all these years) and if someone is looking to spend they are going to have a decent system to build with.

Also the expectation that they should make that loss back with a move to Brooklyn is also promising. Get that team competing again, and it won't be a blackhole investment. They've done a good job with player development to get to this point.

 

[PP]

Fairly shocking stat posted here today:

If you have ever been to Long Island and their shitty arena you would see why.