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Islanders valued at $395M by Forbes; Rangers worth NHL-high $1.5B

The Islanders were valued at $485M when the current ownership group purchased the team 3 years ago.

New York Islanders players congratulate left wing Anders

New York Islanders players congratulate left wing Anders Lee, left, after he scores a power-play goal against the Ottawa Senators in the first period of an NHL hockey game at Barclays Center on Friday, Dec. 1, 2017. Photo Credit: Kathleen Malone-Van Dyke

The Islanders are valued at $395 million, according to the latest estimate by Forbes released on Tuesday.

Forbes’ Islanders valuation, which places the team 22nd in the NHL, represents a 3-percent increase from a year ago. But it remains far off from the valuation of roughly $485 million used in the 2014 deal that gave the group of Scott Malkin, Jon Ledecky and Dewey Shay a controlling interest from Charles Wang, who retains a 15 percent minority share.

Forbes also reported that the Islanders had an operating loss of $8.7 million for the 2016-17 season after turning a modest $2.7-million profit the season before.

The Rangers are worth an NHL-high $1.5 billion, according to Forbes. Forbes, in its annual list of franchise valuations, says the average NHL team is worth $594 million, up 15 percent from a year ago.

The Islanders’ financial setup, though, differs from almost every other professional sports franchise. Their license agreement with Barclays Center gives the Brooklyn arena the operating rights to almost every facet of the franchise aside from the on-ice product.

Barclays Center pays the Islanders a set figure — currently in the vicinity of $55 million — in exchange for receiving revenue from tickets, luxury boxes, concessions, advertising, marketing and radio rights until the total figure reaches about that same $55 million. The Islanders get 70 percent of every dollar earned after that.

But the revenue generated since the team moved to Barclays Center in 2015 has not been what either side has hoped for. The payment that Barclays Center gives the Islanders each year can be reduced by certain non-game-day operating expenses.

Last year, Barclays Center paid the Islanders $39.8 million, according to the arena’s most recent publicly filed financial disclosure documents.

With AP

New York Sports