So it turns out the New York Islanders lease doesn’t actually say the team can opt out of its Brooklyn lease after four years as previously reported — Newsday has discovered it says the Islanders can leave after three years or four years, as they so choose:
After the Islanders finish their second season in Brooklyn, the two sides have until Jan. 1, 2018, to renegotiate the terms of the current deal. If no new deal is reached, the two sides can stay with the current deal or choose to opt out. Each side would have until Jan. 30, 2018, to deliver an opt-out notice in writing.
If the Islanders decide to opt out, the team can choose to leave at the end of either its third or fourth season. If Barclays triggers the opt-out, the Islanders would have to leave after the fourth season. The team just completed its first season in Brooklyn in May.
The two sides need to be engaged in “good-faith negotiations” for either side to trigger the opt-out, but, of course, that’s what this opt-out would be all about: The Islanders’ new owners Jon Ledecky and Scott Malkin, who haven’t been quiet about their “challenges” they say their team faces at the Barclays Center, want a renegotiated lease that gives them either a bigger cut of revenues or more hockey-friendly renovations of some kind or both, and there’s been talk that they might build their own arena in Queens or Long Island or even move back to Nassau Coliseum to create leverage.
That would be complicated, though, notes Newsday, by the clause requiring good-faith negotiations: It means Ledecky and Malkin couldn’t agree to a new arena deal before January 2018, and there’d then be no way to build an arena by fall of 2019 in time for the team to move. So the Islanders would presumably have to play somewhere else for a year or two — Nassau Coliseum would be available, but undersized for the NHL in its new configuration, though the Barclays Center is also undersized, and it would only be for a couple of years, so…
All this is no doubt going to be lurking in the background whenever the Isles owners and Barclays Center (and Brooklyn Nets) owner Mikhail Prokhorov’s people sit down to start those lease talks. Ledecky and Malkin don’t have great leverage, but they do have some leverage, so we’ll just have to see what they do with it. A couple of things are for sure: Former owner Charles Wang was apparently lying when he called the Islanders’ 25-year lease in Brooklyn “ironclad,” and he wasn’t such a terrible negotiator after all.