REALITY CHECK On Barclays Center And The NY Islanders

REALITY CHECK On Barclays Center And The NY Islanders

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Reality Check will be a series, and next one will be on the NY Islanders season compared to last year. But first, we will tackle Barclays.

 

A few things have been rumored, alluded to, and quite out-of-whack with reality lately on Barclays Center this season. Whether it has been the over-hyped lower attendance (In Nassau, SMG & the Isles, in last few years were selling tickets for very little to boost their attendance), or Barclays assumptions due to the hapless Brooklyn Nets. Lately, there are a few inaccurate items floating around again. So let’s begin with 4 items that are sourced and checked on Barclays and the NY Islanders… and you might notice that it no different to items written and tweeted by yours truly previously.

 

First, and I have reported this for two years now… the “out clause” to Barclay’s is mutual. Neither one can opt-out on their own.

 

Second, if team chooses to leave it will be to best offer, and that will be somewhere else. Team will never play on LI. That is a certainty.

 

Third, and importantly, Barclays is doing fine financially with the NY Islanders. Per sources, they are actually a bit better than their first year projections. Sponsorships are selling and expensive, suites are sold and expensive, best tickets mostly sold, even if people don’t come (lots of corporate sales). So despite many ignorant statements from others: there really is no financial issue at year 1 with Barclays and the Islanders.

 

Fourth, the “marriage” is challenging and that is understandable. Team used to owning its own arena (for the most part), so the rental thing has its challenges, a learning curve, and there are lots of adjustments. NY Islanders are the tenants, and the relationships on top is where it matters and the $$$ flow is fine.

 

Bottom line: Barclay’s is getting what they expected and wanted. The NY Islanders are getting what they expected financially (guaranteed money) and sources are wiling to bet quite a bit that this works out just fine, despite the rumors and pseudo-drama.

 

So perhaps those in the peanut gallery should stop looking for the signs of impending doom with a ignorant delusion of a return to LI. In reality, the situation is not bad.

 

Either way, NY Islanders fans should pray this works out unless they want to root for a Seattle or Quebec team.

 

 

About B.D. Gallof

9 comments

  1. “Second, if team chooses to leave it will be to best offer, and that will be somewhere else. Team will never play on LI. That is a certainty”

    How can state that it is a certainty that LI won’t be the best offer? The New York TV money is the reason the Islanders aren’t playing in Quebec or Kansas City right now that hasn’t changed,

    • TV money on next deal is far higher because of Brooklyn. And only accounts for a limited amount. Nassau can not afford to pay Isles $50 million per year in guarantees. Nassau can’t pay anything bc they are in severe financial debt with NIFA controlling their allocations.

    • It’s impossible for NYI to move back to the renovated NVMC – Prokhorov wouldn’t compete against himself and take business away from Barclays since he now runs both Barclays and the renovated NVMC, the renovated NVMC already has the minor league Nets booked there and will likely get an AHL or lower level hockey team there per the agreement. Plus, it will be 13K for concerts and only 11K for minor league hockey or any hockey and basketball.”

      So returning to the renovated NVMC is out. If you’re thinking nassau gets a brand new different building forget it. Nassau is broke, corrupt, watched by NIFA. has no interest in NYI, wants to stay small town with no growth, NY has enough arenas already and the NHL doesn’t want them in nassau.

      Bettman hates the town of Hempstead and nassau for jerking NYI around. Ledecky/Malkin didn’t pay half a billion dollars for a nassau team, they spent it for a NYC one.”

      Bettman Derides Islanders’ Possible Return to Nassau County – Wall St. Journal

      http://www.wsj.com/articles/bettman-…nty-1429917965

      Bettman: Don’t hold your breath on an Islanders return to Nassau County

      “he’s been working with various big fish in small ponds across multiple Nassau administrations since he took the job in 1993 and knows better than to trust these guys as far as he can throw them.”

      http://www.lighthousehockey.com/2015…-keep-dreaming

    • It’s impossible for NYI to move back to the renovated NVMC – Prokhorov wouldn’t compete against himself and take business away from Barclays since he now runs both Barclays and the renovated NVMC, the renovated NVMC already has the minor league Nets booked there and will likely get an AHL or lower level hockey team there per the agreement. Plus, it will be 13K for concerts and only 11K for minor league hockey or any hockey and basketball.”

      So returning to the renovated NVMC is out. If you’re thinking nassau gets a brand new different building forget it. Nassau is broke, corrupt, watched by NIFA. has no interest in NYI, wants to stay small town with no growth, NY has enough arenas already and the NHL doesn’t want them in nassau.

      Bettman hates the town of Hempstead and nassau for jerking NYI around. Ledecky/Malkin didn’t pay half a billion dollars for a nassau team, they spent it for a NYC one.”

      Bettman Derides Islanders’ Possible Return to Nassau County – Wall St. Journal

      http://www.wsj.com/articles/bettman-…nty-1429917965

      Bettman: Don’t hold your breath on an Islanders return to Nassau County

      “he’s been working with various big fish in small ponds across multiple Nassau administrations since he took the job in 1993 and knows better than to trust these guys as far as he can throw them.”

      http://www.lighthousehockey.com/2015…-keep-dreaming

  2. You state that collectively, Barclays and the Isles can mutually terminate. Have you seen the Lease that provides this alleged mutual termination option?

    Rumors have been abound and rampant about this issue but there has not been one person that can conclusively state that he or she has read the Lease and saw this option.

    Also, is there a kick-out clause in the Lease whereby Barclays can terminate if revenue/sales dont meet or exceed $_______________?

    • Sadly, I don’t know. All I know is I have been told by a solid source familiar with the deal that the opt-out must be mutual. The NY Post ran a piece later that there was an opt out by Barclays. I was told again that this is not right, and that it is mutual.

      But there is no person that can conclusively state that he or she has read the lease and seen the option.

      I do not know on the kick out clause. It sounds like a no… but will check. Isles get guaranteed $50+ per year no matter what seats are sold is what has been said by that source and others.

      • As a contracts professional, I can tell you that “mutual” out clauses in contracts are unnecessary – because if both parties agree to the terms of an early termination (or anything else that wasn’t part of the original deal), they can simply amend the agreement at the appropriate time to reflect the new arrangement.

        So… I highly doubt this early termination clause requires the mutual consent of both parties. The clause probably states that either party can exercise the option – but it doesn’t have to be mutual…

        • Sounds good. Took to source who has seen that lease
          “‘Not so, I’ve seen it’

          One day hopefully someone will have a copy so we can all read. Until then… Well all we got/

  3. To be honest, I highly doubt Barclays would put themselves in a position where if they were losing money on the Islanders by paying 50M a year that when 5 years is up even if they want out the Isles have to agree. Barclays is losing money overall and being privately owned will need to turn that around soon. The Isles no doubt wanted the guaranteed revenue and Barclays seems to be doing ok with the team, but there is no way they will lock themselves in for another 20+ years of losing money on the Isles.

    I agree Nassau won’t build the team a building or guarantee 50M a year but Brooklyn/NYC is not guaranteeing that money either. It is being guaranteed by the Barclays Center, a private entity. If the Isles were being paid by the city you can just imagine every other team wanting a similar deal. Although highly unlikely if one of the owners were to want out I could see trying to negotiate a new building in Nassau/Suffolk or possibly near Citi Field where fans could still drive. Like I said I don’t see that happening but to say the only way they leave is to go to KC or Quebec I don’t think is correct.

    At the end of the day though if Barclays makes money on the Isles they won’t be going anywhere because I think it is fair to say they will not see that guaranteed revenue stream in any building including KC, Seattle or Quebec

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