A week after Charles Wang was sued by Andrew Barroway for allegedly backing out of a sale for $420 million, the New York Islanders announced Wang has sold the team to Jonathan Ledecky and Scott Malkin, who will transition to majority shareholders over two years.
The New York Islanders have picked up Malkin!
Or more accurately, Malkin has picked up the Islanders.
The New York Islanders have announced a new ownership structure for the team, after former Washington Capitals co-owner Jonathan Ledecky and London-based investor Scott Malkin purchased a "substantial" minority interest in the team.
From the Islanders:
Under the terms of the agreement, Charles Wang will continue as majority shareholder and Governor of the Islanders, with the Ledecky/Malkin group transitioning to majority owner in two years.
The sale is contingent on the NHL Board of Governors' approval.
Wang has been looking to sell the franchise for a few months now and appeared close to a deal with Philadelphia hedge fund manager Andrew Barroway. Last week, Barroway sued Wang for $10 million after he says Wang backed out of a deal to sell the Islanders for $420 million.
The terms of Wang's sale to Ledecky and Malkin have not been released, though we have to assume it's for more than $420 million.
The transition comes during a period in which the Islanders will move out of Nassau Coliseum and to Brooklyn as a tenant in the Barclay's Center. This coming season will be the Islanders' last in the Coliseum, so the new ownership group would take over majority control for the second year the team is in Brooklyn.
Wang has owned the Islanders since 2000 when he purchased the team with former partner Sanjay Kumar for $190 million. Wang bought out Kumar in 2004.