SBD/April 25, 2014/Franchises

Source: Isles' Wang Offering 75% Ownership, With Five-Year Option On Other 25%

The Islanders this week released an offering memorandum for majority ownership to potential bidders for the team, according to a source in the finance industry. In the memo, Islanders Owner Charles Wang offers 75% ownership of the club, with a five-year option on the other 25%. The memo also states that the Islanders sustained an operating loss during the '13-14 season of $4.8M, with the loss minimized greatly by $15M received from NHL revenue sharing and escrow payments. According to the memo, total revenue for the Islanders this season was $84M. The value placed on the team in the memo is $370M. The memorandum was released by the team on behalf of Wang, who has yet to utilize the services of a bank or financial consultants in the ongoing sales talks. NHL Commissioner Gary Bettman on Wednesday confirmed that while Wang is soliciting and listening to offers for the Islanders, he may not be ready to say goodbye to the team, which he acquired in '00. In earlier discussions with prospective buyers, before the offering memorandum was released, Wang was offering 30-49% of the team at the start, with Wang remaining the Islanders’ majority owner for at least the next two seasons. Philadelphia hedge fund manager Andrew Barroway is the lone suitor whose name has been made public. A league source said a finalized deal between Barroway and Wang “is not close,” and that Barroway “does not have a leg up on anyone else interested in buying the Islanders.” Barroway has been in search of partners to help him fund the purchase. One person who can be removed from consideration is asset management firm Trian Partners CEO Nelson Peltz. He has been linked to bids for the Devils and Senators in the past. However, a source close to Peltz on Thursday said that the Brooklyn-born billionaire has “no interest” in bidding for the Islanders.
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