Trouble on the Island?

With all the talk about the NHL adding a second team in Toronto lately casting a spotlight on teams in potential trouble, there have been the usual teams that pundits have pointed towards possible relocation, such as the Predators, Thrashers and perhaps even the Coyotes.

However, one team that is potentially facing a real dilemma is the New York Islanders.

The Isles have been trying to move out of or upgrade aging Nassau Veterans Memorial Coliseum for years. Now, the latest project to modernize the venue for the team to compete with the rest of the NHL with all the bells and whistles of today's luxury boxes and revenue-generating aspects is called the Lighthouse Project.

The Lighthouse Project calls for renovating the current Coliseum with a reconstruction of the interior and adding those items, adding a Town Center-type of development around it, modernizing what is now the parking lots for the arena with development.

But the Islanders have had trouble getting the local authorities to approve the project, and now the team is a bit of limbo on how the team's future will look.

To his credit, Islanders owner Charles Wang has refused to play the usual hostage-taking game, trying to stay positive in working to get the project passed with Nassau County and the Town of Hempstead. He even brought Gary Bettman out to the Island this week, where the commish refused to address speculation what might happen if the Lighthouse isn't approved instead of throwing down the gauntlet to get the project passed - or else.

But clearly, this project could be the last hope the team has of remaining on Long Island.

In the latest Forbes franchise evaluations, the Islanders were ranked 29th of 30 teams, with the arena blamed for the bleak financial picture.


While the Islanders themselves claim to lose between $14 million and $20 million per season, Forbes estimates roughly the team does lose roughly $9 million per year. Either way, it isn't a pretty financial picture for the long-term success without the renovation and the money it would infuse in the franchise.

The other problem is the vicious cycle that surrounds teams that aren't making a profit, as ownership is reluctant to spend money on the product with the long-term future finances unclear, leading to a lesser product and less attendance.

The Islanders finished last overall in attendance in 2007-08 and currently are dead last in the league in attendance this year with 13,233 per game, a result of a team that most view to be a non-playoff squad playing in a dark and dreary arena in Uniondale. And, with no guarantee of escaping from the financial losses, there's no incentive to improve the product to boost the attendance.

And, with the economy struggling, it hurts the team both ways as people are less likely to spend cash on an inferior product, while more damaging long-term, it's much harder to get a project like this passed with the expectation that public money will be spent to get the project done. And, with the uproar over spending on sports facilities thanks to the Yankees' new playpen in the Bronx, the mood right now among politicians isn't exactly to be hospitable to sports' teams requests.

So, while Wang has refused to address the possibility he might sell the Islanders, if the Lighthouse fails to get off the ground, without a new arena in the works and little hope of turning a project, it's hard to see the Islanders staying put.