Islanders owner in talks with Andrew Barroway; history between the two
ESPN.com has confirmed that the individual in talks with Islanders owner Charles Wang is Philadelphia lawyer, Andrew Barroway. It was last week when the talks began that Wang, who became owner of the franchise in 2000, was looking to sell the team. Since Wang became the principal owner in 2004, the Islanders have reached the postseason just two times, and have not won a playoff series.
According to ESPN, Barroway was involved in a class-action suit against Wang’s company Computer Associates in 1998 and the suit was settled in 2003. The suit alleged that Computer Associates violated multiple section of the Securities Exchange Act, such as artificially inflating revenues.
ESPN.com states that Barroway would have had to qualify as a member of the class, which, according to the court, meant “purchased or transacted in common stake of CA or common stock options during the period of January 20, 1998 through and including February 25, 2002.”
Computer Associates were investigated by the Securities and Exchange Commission, which resulted in executives being charged with fraud and sentenced to prison in 2004.
According to court documents obtained by ESPN, Computer Associates “promised to distribute up to 5.7 million shares of stock” to shareholders who were involved in the suit. There were, however, some shareholders who objected the settlement.
While it is unclear regarding how serious talks have been between Wang and Barroway, it seems as though the NHL is not worried about the past litigation between the two.
Friday Wang issued a statement claiming there has been interest, and while he is listening to offers, it is not guaranteed the team will be sold.
“In recent months, there have been numerous expressions of interest in the purchase of the New York Islanders. As I have consistently stated, I have been and remain willing to listen. However, potential buyers expression of interest in the team or even my listening to them does not mean a deal will be reached.”
Despite the issues the Islanders have been having, and reports that Wang has been “losing tens of millions of dollars every year,” perhaps things could improve with potential new ownership and the teams’ move to Brooklyn, which is set to begin at the 2015-16 season
Follow Tyler Race on Twitter, too!