Prokhorov offering statement pdf files August 2016
I asked to see the offering statement, so we have no guesswork, gossip, rumors or speculation. This is Mr Prokhorov's paperwork submitted to refinance his arena debt on Barclay's Center.
Martin Braun of Bloomberg, provided me a link to the pdf files. They cannot be posted here, but Mr Prokhorov provided all details of the Islanders out clauses, lease agreement, revenue so folks can read for themselves.
Click on the link Mr Braun provided, go to official statement tab, click on pdf file for 8/23/16.
Also included is the Convention Sports & Leisure Review of many projected facilities, but again references the Islanders lease out clauses, and had model/projections of the teams attendance, revenue, that's more projection/analysis than fact.
Page 76, 77, 79, 99 answer all questions.
Convention Sports &
Leisure begins it's analysis on page 119, page 127 has historical
analysis of Islanders. Page 182, 185 has a simulation of the Islanders
general paid attendance moving forward.
This is a 200 page pdf document.
Long story short the New York Islanders can leave Barclay's after the 2017-18 season, Barclay's/Prokhorov can kick them out after 2018-19.
* After 2016-17 season both sides can initiate good faith discussions regarding modifications of financial arrangements in NYI license agreement until 1/1/18.
* If no agreement by 1/1/18 either party can deliver an opt out notice by 1/30/18 which would terminate the agreement at the conclusion of the 2018-19 season or the 4th year of the lease.
* If either party decides to send that opt out notice, the Islanders have the right to terminate the agreement after the 2017-18 season, and leave Barclay's.
*The Islanders receive 53.5 million per year with a 1.5 percent increase per year. Barclay's receives all revenue. The Islanders pay 2 million/cover operating expenses which came to 6.5 million, and receive ticket revenue for playoffs.
Specifics are provided in the paperwork.
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NYIFC Comments:
Bottom line the 25 year lease is a fact, but hardly iron-clad as Wang proclaimed in October 2012.
There is no arena in NY for this team to move to so those thinking the NY Islanders have any leverage are not dealing in reality.
The media push (partly from Dolan's media outlets who have hundreds of millions to gain by the team leaving NY entirely) will increase to get them out of Barclays, the fan push from the Long Island only crowd boycotting games since 1989 will drive them to another market entirely with Prokhorov not wanting the Islanders in any facility he owns regardless of how things play out in Bridgeport.
That means the team moves out of New York because there is no NY arena to play in. NYC will not force Dolan to let them play in his privately owned taxpayer exempt building to retain his expiring operating permit.
Or both sides could reach a lease extension & are happy with the current terms. Yormark, Ledecky have made clear they have worked well together, and said the right things, but we'll know what they really think by January 2018.
We have no idea where Prokhorov-Malkin stand who are the final word to any agreement.
My observation is Mr Ledecky or Scott Malik (primary Governor) cannot make any promise that Barclay's is the permanent home because Prokhorov has to agree to that.
Obviously Ledecky-Malkin purchased a NYC franchise with revenue streams to support a team in that market, it will take time to increase a base with a media hiding them in print/television unlike the 1970's but that NY Islander team barely avoided bankruptcy with games on free television, and a dedicated print media with improving fan support.
Bill Torrey/John Pickett were told then by Bill Shea put team in bankruptcy, both disagreed because of the growing fan support that is no longer there this time to show up 41 times.
It's also fair to write Ledecky-Malkin will not be getting a taxpayer funded NHL arena anywhere in the NYC area, nor is the fan base or revenue at the Coliseum to support an NHL franchise.
Nassau County for three years has left the Cosmos hanging while offering a 400 million dollar soccer stadium privately funded so there will again be no taxpayer money coming for an NHL arena or fan support for an NHL franchise to operate in Nassau regardless what happens.
We'll see but the only hope is the fan support increases to make this worth while for both sides to accommodate the other at Barclay's as it did in the 1970's with no media this time.
In other words Ledecky is begging for fan support from a base that has not sold out 41 games since 1988 in any arena.
We also know by the end of 2017-18/2018-19 Quebec will want an NHL franchise in that empty building with fans ready to purchase 15,000 five year plans immediately at top dollar prices as Tavares hits free agency with a franchise in July 2018 that may no longer have any NY facility to call home with no choice but to relocate.
So will the NHL who are getting more revenue in Winnipeg vs Atlanta, but it's not their decision where the Islanders play inside their territory or what lease agreement they sign.
Malkin-Ledecky will have a better idea soon if the fans will show up besides opening night and playoff games.
No new building is coming, we know the history, the Coliseum since 1980's has not been a viable revenue option nor is the poor fan support win or lose.
When Wang said it was Barclay's or out of town he was correct, this is the final arena option in this market.
And after what Detroit and Edmonton were handed by the taxpayers for new facilities, it's comical for anyone to think owners who just spent 485 million for 85 percent of a team, are going to pay for an arena also, and provide fans a cap max payroll for people buying seats under ten dollars on stubhub for a gate between 10-12,000 for many games.
All parties knew what they signed up for when they bought the team & this lease, and also knew the logistics of playing at Barclay's with the poor attendance history at Nassau.
Mr Ledecky on the surface is trying to promote stability, and desperately engage the fans to support the team, and correctly is selling New York/Barclay's Center, it was also comical to see him telling us how great the seats are at Barclay's so he sounds like a man trying to make this work because there is no other option for them to retain the team here.
I think this is the final chance for this teams fans to show up, and it may not even matter in the end if Prokhorov would prefer more concerts, a dark arena more often, and to save his 53 million payment.
Tavares will not resign next summer unless this team's future home is secured, that will give us a good idea where things really stand as those good faith discussions begin with Barclay's.
