On Monday, August 11, New York Islanders owner Charles Wang was served with a lawsuit demanding $10 million in damages for allegedly backing out of a deal to sell the team.
Philadelphia based hedge-fund manager Andrew Barroway’s company NY ICE claims that on March 10, Wang and Barroway reached a sale agreement, culminating in a handshake. NY ICE was to receive 100% equity in the Islanders in exchange for $420 million. The papers filed in New York County Supreme Court state that the negotiations began to sour in June when Wang indicated to Barroway that he could’ve sold the team for much more after learning of Steve Ballmer’s acquisition of the L.A. Clippers for $2 billion. Wang eventually demanded $548 million, an increase of over 30%. After NY ICE refused to pay the new price demand, Wang informed Barroway he had decided to sell to other bidders.
The lawsuit claims that Charles Wang breached a contract to sell the team, and that he acted in bad faith by backing out of the sale at the last minute. NY ICE is seeking to enforce a $10 million “break-up” fee, which would require Wang pay NY ICE $10 million for not selling.
If Wang wasn’t bluffing and actually did sell the Islanders to another group of investors for his new demand, he will bring in an extra $128 million more, an amount substantial enough to cover the inconvenience fee of $10 million that Barroway is demanding.
Islanders Owner Charles Wang Sued for Allegedly Backing out of Deal to Sell Team
Islanders owner Charles Wang hit with $10 million lawsuit for backing out of deal to sell team