New York, NY, United States (4E Sports) – Majority owner Charles Wang announced that the ownership of the New York Islanders will be transferred to a group led by former Washington Capitals co-owner Jon Ledecky after the two sides reached an agreement.
Based on the agreement, Ledecky and London-based investor Scott Malkin will purchase “substantial minority interest” in the team, pending league approval by the NHL’s Board of Governors, with the stipulation that the group would take over majority ownership in two years.
Wang would continue as the majority shareholder during that time while a source said a vote by the Board of Governors would likely happen in December.
“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 in a team-issued press release. “I look forward to a long and successful partnership.”
“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.
The Islanders, founded in 1972, will play their final season at the antiquated Nassau Coliseum before they move to Brooklyn’s Barclays Center in 2015. The team signed a 25-year lease with the Barclays Center back in 2012.
The Islanders, who have missed the playoffs in seven of the last eight seasons, have hemorrhaged money in recent years. Talk about a potential sale of the team began this past spring, with hedge fund manager Andrew Barroway in talks to buy the team.
Ledecky will now become owner of his second NHL team, having previously sold his minority ownership in the Caps to current owner Ted Leonsis back in 2001.