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| A supergroup of New York sports executives, including owners of the New York Rangers and the New York Mets, is lining up to invest in a new arena just outside of Queens for the National Hockey League’s Islanders, according to people familiar with the discussions. The Islanders play at Brooklyn’s Barclays Center, though executives there have concluded that it’s no longer worth it to host the hockey team, and the lease can be terminated as early as January. The new arena proposal is a joint venture between the Islanders, Oak View Group and Sterling Project Development, said the people, who asked to be anonymous because the talks are private. James Dolan’s Madison Square Garden Co., which controls the Rangers, long the Islanders hated rivals, is an investor in Oak View Group, the private equity group run by Tim Leiweke and Irving Azoff. The Wilpon family, which owns the Mets, controls Sterling Project Development. |
Haha, I do admit it would be painful thinking every sip of my 42 dollar beer would be going to the Dolans' ski trip.
On the plus side, if the arena performs poorly financially, your team has a home and Dolan loses money in the process. That's a major score!
I can see it now...Isles bumped into a few more road games to allow for Jimmy Dolan's jug-handle band to headline for 2 weeks straight.
And this would only be about 20-30 minutes from Prokhorov's new Nassau Coliseum and would potentially be stealing much of their business, as well. I doubt Jim had taken kindly to a new force in his business making waves.
Have they partnered on other things?
Why is MSG invested in a PE real estate fund?
Funny because it's been the Islanders owning the Rangers these last few years.
-pganut
-pganut
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Funny because it's been the Islanders owning the Rangers these last few years.
-pganut
10-3 since 2014-15. #JustSayin
Mike it was self-deprecating humor, no need to pile on. : )
Because the owners of MSG stock want to own the sports and entertainment assets of MSG. If they want to invest in a private equity real estate fund they can do that.
Im not picking on MSG here. If you told me GM owned the same investment, I'd ask why.
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in Oak View and has no role in management. Also, anyone else think it's funny that Dolan is involved in something called "OAK" view?
Why is MSG invested in a PE real estate fund?
Dolan is pretty wealthy I believe. I'd expect him to have other assets aside from MSG. All of that money has to go somewhere.
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What makes you think they shouldn't be?
Because the owners of MSG stock want to own the sports and entertainment assets of MSG. If they want to invest in a private equity real estate fund they can do that.
Im not picking on MSG here. If you told me GM owned the same investment, I'd ask why.
I don't think you're picking on anyone, but there's no indication that this investment is material to MSG. If it is, it's disclosed in the company's financials.
It also isn't at all uncommon for corporations to own investment assets outside of core operations. Common reasons would be to meet projected pension funding obligations, set aside funding (while earning a return) for a known/expected future capital expenditure, etc.
No reason to believe that the investment is inconsistent with the duties owed by management to shareholders.
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in Oak View and has no role in management. Also, anyone else think it's funny that Dolan is involved in something called "OAK" view?
Why is MSG invested in a PE real estate fund?
MSG tried to buy the Coliseum when it was up for grabs a couple of years ago. It's only logical that they would be at the forefront of the newest competing option. There's a ton of cash looking for a home now that CVC is sold.
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What makes you think they shouldn't be?
Because the owners of MSG stock want to own the sports and entertainment assets of MSG. If they want to invest in a private equity real estate fund they can do that.
Im not picking on MSG here. If you told me GM owned the same investment, I'd ask why.
The owners of MSG stock are largely the Dolans and their respective trusts. It isn't exactly managed in the way that a typical public company would be.
There isn't much difference from fighting the Meadowbrook / Southern State / Northern State at rush hour, if at all. Plus, the LIRR has a stop at Belmont, the Coliseum doesn't. You can make a case it's much more accessible than Nassau Coliseum on any given day.
So it's not like having a stake in another entertainment venue is out of their business model.
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In comment 13370904 bigbluehoya said:
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What makes you think they shouldn't be?
Because the owners of MSG stock want to own the sports and entertainment assets of MSG. If they want to invest in a private equity real estate fund they can do that.
Im not picking on MSG here. If you told me GM owned the same investment, I'd ask why.
The owners of MSG stock are largely the Dolans and their respective trusts. It isn't exactly managed in the way that a typical public company would be.
The Dolans own ~20% of MSG. And your second sentence is debatable. Once you have public shareholders as a Delaware corp, you own them fiduciary duties, although this wouldnt implicate that.
The CVC proceeds have nothing to do with what MSG is investing in. Those are separate entities. MSG doesnt get that cash.