Islanders sell minority stake of club to ex-Capitals co-owner
Charles Wang to continue as majority stockholder for 2 years
The New York Islanders are selling a minority stake of the team, with a former Washington Capitals co-owner and a London-based investor to become full owners in two years.
The hockey team said Tuesday a group led by former Capitals co-owner Jon Ledecky and investor Scott Malkin agreed to buy a "substantial" minority interest. Terms were not immediately disclosed.
Under the agreement, current owner Charles Wang will continue as majority stockholder for two years, the team said in a statement. At that point, ownership will transfer to the Ledecky-Malkin group.
"We are pleased to have the opportunity to become partners in the New York Islanders with Charles, and to pursue our shared dream of winning a fifth Stanley Cup for the greatest fans in the NHL," Ledecky said in a statement.
Wang, a billionaire founder of the software computer company Computer Associates, now known as CA, had tried for nearly a decade to build a new arena for the Long Island hockey team. When several efforts failed, including a referendum in 2011 defeated by voters that would have financed a $400-million US coliseum, Wang announced plans to move the team to the recently opened Barclays Center in Brooklyn.
The team will play its final season on Long Island this year before moving to Brooklyn for the 2015-16 season.
"I'm thrilled that Jon and Scott have agreed to join me as we start the Islanders' final year at Nassau Veterans Memorial Coliseum," Wang said. "I look forward to a long and successful partnership."
Last week a hedge-fund manager who was interested in buying the Islanders sued Wang, contending breach of contract. Andrew Barroway's NY ICE said Wang demanded $548 million months after agreeing to sell the team for $420 million.
The lawsuit alleges Wang had "seller's remorse" and demanded more money from Philadelphia-based Barroway after the NBA's Los Angeles Clippers sold for $2 billion.