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Sports territorial rights put Newark, Brooklyn and the N.Y. Islanders at a disadvantage

The property tax issue has been around for four decades. Garden chairman Irving Mitchell Felt was so disgusted with the costs of the Garden that he considered moving the Knicks and Rangers to the New Jersey Meadowlands. It seemed that the Meadowlands in the early 1970s was the panacea for all that ailed New York City-based franchises. Had history followed a different course in 1972, George Steinbrenner would have missed out on buying into the New York Yankees as a local New Jersey businessman was in the hunt to get the Yankees and move the franchise to the Meadowlands. It is possible that the Meadowlands would have housed baseball and the Knicks and Rangers in 1976 instead of the Mara family's New York Giants.

Sports owners in the metropolitan New York area should be paying full property taxes. The New York Yankees, the New York Mets, the Jets-Giants ownerships are getting subsidized through PILOTs, the Garden is not paying any property taxes and the truth is, the sports teams are not really creating many jobs. The NHL and NBA are within their legal rights to control their franchise movements however with so much of the league's businesses being propped up by public dollars (including cable TV monies which have been produced thanks to the 1984 Cable TV Act which was signed into law by President Ronald Reagan and the revamping of the 1986 Federal Tax Code which shifted the parameters for rent at new municipally built facilities that gave a sports owner up to 92 percent of all revenues generated in the building with just eight percent going off to pay down the buildings debt), it is time to review territorial rights issues.

The American public should really know the score and how much money taxpayers are putting into the system. The news might be staggering.

Since Milwaukee officials in 1950 decided that the public should pay for a baseball stadium in order to attract a Major League Baseball team for the city, politicians have been spending vast amounts of public dollars on owners for big time sports. Leagues are private businesses yet so much of the public is picking up the bills for sports on the professional level and now the college level. The public should begin to have a say. When the Dolan family starts paying their property tax on their Manhattan holding, then they should have a say on whether Brooklyn can go after Charles Wang's Islanders franchise. Newark put up a lot of money for the downtown arena. It seems rather unfair that a bunch of suits in a Manhattan office can summarily dismiss a bid for an NBA team in a publicly built facility just because a commissioner has a fit in 2005 because things didn't go his way or because an NHL owner who is highly subsidized by a city and a state just doesn't want competition a bunch of stops away by subway.

Evan Weiner, the winner of the United States Sports Academy's 2010 Ronald Reagan Media Award, is an author, radio-TV commentator and speaker on "The Politics of Sports Business." His book, "The Business and Politics of Sports, Second Edition is available at www.bickley.com, Barnes and Noble or amazonkindle. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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Comments (8)
8 Wednesday, 01 February 2012 22:16
Chris TMC
...writing this article. You really don't know what you are talking about.
Way not to research anything and just spout crap on the Internet! *applause*

Next time, get a better source than some unnamed dope who has no clue about this situation.
7 Wednesday, 16 February 2011 10:26
Daniel R
I have to disagree with NJFAN2010 and Net Income on this issue. While true the NHL could not get in the Barclays Center as designed now, Bruce Ratner, the majority owner of the Barclays Center, said back in late 2009, before construction started, that the Barclays Center would be retrofitted to accomodate NHL Hockey and would welcome the Islanders into that building. Brooklyn is definitely in play here and IMO, is the favorite right now to get the Islanders once the lease at the Nassau Coliseum is up in 2015.

They will have Hockey in the Barclays Center (College Hockey). Its very possible that an Islanders move to Brooklyn is very real and it can fit if its going to be retrofitted as Ratner has already gone on record saying he would do. 14,500 for NHL Hockey can work in the Barclays Center, as Brooklyn is part of Long Island (Very Western end).
6 Tuesday, 15 February 2011 23:45
evan weiner
Let's get some facts straight, Leon Hess traded Monmouth Park to New Jersey in exchange for his Jets t the Meadowlands. That happened in 1983 under Ed Koch. That was part of the USFL-NFL antitrust trial as Leon testified. This column is about monies diverted from public coffers into owners pockets. Dolan can pay Lebron, Melo the equivalent of the city's property tax. Brooklyn can be fitted in med stream just like Toronto did at their arena to house hockey. Leagues can rewrite territorial rights whenever they want. It is a business, that is what sports is.
5 Tuesday, 15 February 2011 23:20
NYIFC
Mr Grossman

Gary Bettman gave this interview back on 2/14/2010, not 2011 so why is this here now and not New York winning streak or a few well deserved words on Grabner? . The New York Islanders have full territorial rights to move anywhere in New York outside of Manhattan which countless articles have confirmed.

Wang said recently he would go to the games in Flushing or Brooklyn in an interview.

Without the New York Islanders being what the Yankees were to YES when they were getting started there would be no Cablevision for the Dolan's to attempt to buy the Islanders from John Pickett (which failed) and eventually Msg.

Mr Grossman you want to impress us with something new how about hitting on Bloomberg and Dolan for hypocrisy, now both are hanging out at Msg and going to see Cablevision's hockey team after all the money this city losses on that tax exemptions after they cost NY the Olympic and the NJ Jets.

Nothing short of Murray and Wang at Islander games would be more shocking.
4 Tuesday, 15 February 2011 18:01
NJFAN210
This whole article is irrelevant. The real reason the Islanders can't move to Brooklyn is because the arena is being built specifically for basketball. An NHL rink cannot fit on the building's floor. Ever since Frank Gehry's design was scrapped (which actually included an event floor large enough to hold an NHL rink) the idea of the Islanders moving to Brooklyn has been killed. The reason it had never been brought up during the Gehry arena years is because at that point in time, the Lighthouse Project was Wang's priority.

The Islanders are talking about building in Queens and the Rangers cannot claim any territorial rights, because the Islanders are already established in the region. This has already been confirmed by the league and the NHL has said Queens might be a logical place for the Islanders to wind up. The same territorial rights issue in the NBA allowed for the Nets to move to Brooklyn without any issue from the Knicks.
3 Tuesday, 15 February 2011 13:42
evan weiner
If you fellow owners like you and you are part of the "in" crowd, you can do whatever you want like Art Modell, Bud Adams, Bill Bidwell, Bob Irsay, MLB owners with the Nationals, Lew Wolff has been a good boy in Oakland, maybe MLB will let him eventually go to San Jose which is five times as far as Oakland in mileage from San Francisco
2 Tuesday, 15 February 2011 11:27
evan weiner
Whatever the territorial rules are, they are easily broken---Al Davis v NFL, Donald Sterling v NBA and owners make up rules as they go, AFL, Jets pay Giants $10 million, Raiders pay 49ers $8 million in 1966, the MLB's Nationals franchise gives up cable TV income to Peter Angelos and the Orioles in a combined regional sports network so the territorial rules mean nothing. Getting owners to pay their fair share of taxes, that is the point of this column and then when owners pay their fair share, they can dictate terms. $14 million a year in NYC is a drop in the bucket but with the national war on municipal workers on going by politicians who give the store away to business in general, perhaps it is time to rethink PILOTS, tifs and other tools and start with getting sports owners to pay their share of the tax bill
1 Tuesday, 15 February 2011 11:00
Net Income
As part of their agreement to get out of the awful IZOD lease, the Nets abandoned their rights to New Jersey, just as the Knicks abandoned their rights to any NYC locale other than Manhattan, the Bronx (and Westchester). And just as the Nets didn't need to compensate the Knicks for the right to set up shop in Brooklyn (or Queens), a successor team in Newark won't need to compensate the Nets for right to set up in Newark or any other location...not that the NBA is going to put a third team in NJ.

I would also suggest double-checking on the Islander rights. I have been told a completely different story, that the Islanders could move to Brooklyn without compensation to the Rangers. However, the point is moot. With the downsizing of Barclays Center in 2009, there is little room for an NHL franchise. The max capacity of the new arena for hockey is a paltry 14,500, considerably less than the Nassau Coliseum. In addition, the sightlines for the best seats in the arena are not optimum for hockey. There is no way the NHL or its owners would permit such a small capacity arena...no matter how new or now well located.

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