The Islanders’ sale-saga is over.
Computer Associates chairman Charles Wang and Computer Associates president Sonjay Kumar finalized a deal yesterday to purchase the Islanders for $180 million. A formal announcement will be made this morning during a press conference at the swanky Garden City Hotel.
The sale confirms an exclusive story by The Post on March 9, which reported that Wang, a Nassau County resident and billionaire, was considering buying the club.
So ends the turbulent 26-month Isles ownership reign of Howard Milstein, his brother Ed, and Steven Gluckstern, who had purchased the Islanders in February, 1998, from John Pickett for $195 million.
The outgoing owners received extreme criticism the past season as they severely slashed player payroll from $26 million to its current $16.4 million, which lies near the bottom of the NHL. A large chunk of that savings came when they traded the popular Ziggy Palffy to the Kings last year.
Wang and Kumar, who are the fourth owners of the Islanders since ’92, plan to build a new Nassau Coliseum on the 70-acre Coliseum site in Uniondale, which would no doubt be named after their Islandia-based company. In addition, the duo wants to build a convention center and a hotel on the Coliseum site, as well.
However, a source close to the situation said that Wang and Kumar have not come to an agreement with SMG, the company that manages the Coliseum, about buying out their lease, and running the Coliseum. The lease expires in 2015. If a deal is not agreed upon soon, Nassau County would condemn the lease, removing SMG from the Coliseum and its surrounding site.
However, SMG’s chief negotiator is former U.S. Senator Al D’Amato, who happens to be on the board at Computer Associates. D’Amato, played a key role in the sale by bringing Wang and the outgoing owners together in March. As a result, it remains possible that Wang and SMG could eventually agree on a lease buy-out price.
In the meantime, SMG and Nassau County Executive Tom Gulotta each signed a consent contract yesterday for the transfer of team ownership to Wang and Kumar.
Gulotta, who was involved in the sale talks, said the team is in good hands with the new owners, who should be approved by the NHL Board of Governors in June.
“This is great news for the sports fans and taxpayers on Long Island,” Gulotta said yesterday. “Mr. Wang’s and Mr. Kumar’s ownership will ensure that Nassau County will remain the home of the Islanders and that we can restore the legacy of this great team.”
The Islanders, who won four straight Stanley Cups from ’80-’83, have missed the playoffs for six seasons in a row.
Before Wang came into the picture, Long Islanders Bob Gutkowski and Charles Koppleman had been the front-runners to buy the team. But disagreements over lease issues with SMG foiled their attempt.
