As part of their agreement to come to Brooklyn, the Islanders will get an annual payment from the Barclays Center beginning in the 2015-16 season, a payment which actually increases slightly each year, according to the Wall Street Journal and Islanders Point Blank. The reports didn’t have an exact figure, but it is said to be at least $10 million annually.
Via Islanders Point Blank:
The source added that the payment to the Islanders would increase at a single-digit percentage annually. There are also stipulations in the agreement that could cause the payment to be reduced but the exact details of such stipulations were not known.
In exchange for the large lump sum payment each season, the source tells Point Blank that the Barclays Center will receive the majority of team revenues. Those revenue streams include ticketing, merchandising, suite sales and other revenue sources that Islander games at the Barclays Center will produce.
In the deal, the Islanders also agree to play most of their regular season games at the facility as well as a guarantee of three pre-season games per year.
Two things jump out at me after reading that. The first is that the Islanders are getting pretty good financial stability from this deal. For an organization that has been so rocky financially in the last decade that was probably a big deal for them. The last bond proposal out in Long Island had them paying at least $14 million in rent to Nassau County each year so this is by far sweeter than that.
The other thing that jumps out at me is that this seemingly intertwines the two organizations where the Barclays Center gets a cut of ticket and jersey sales. It doesn’t seem to give control to Brett Yormark, the BC’s CEO, over the team’s personnel decisions. But if this is going to be profitable for Yormark and Co. then he’s going to need some sort of assurance that this team is run well and making the playoffs.
My point is that it feels like, slowly but surely, the two organizations are becoming one. For now, Charles Wang is still in charge of the Islanders though.