European private equity executive Oliver Haarmann is in talks to buy roughly 10% of the New York Islanders, according to multiple people familiar with the negotiations.
Haarmann, a founding partner at Searchlight Capital in London, would be at least the second buyer to invest in the Islanders this year, joining former NHL executive John Collins, said the people, who were granted anonymity because the details are private. The Islanders are owned by Scott Malkin and Jon Ledecky, who bought the team in 2016 in a $485 million deal.
Forbes previously reported that a 10% stake of the Islanders was being sold by Malkin, who lives in London, at a $1.75 billion valuation, but did not identify the buyer. Sportico last year valued the team at $1.13 billion.
A representative for the Islanders declined to comment. Representatives for Searchlight didn’t immediately return a request for comment.
The $1.75 billion valuation would be a large jump from Sportico’s $1.13 billion, and while minority stakes typically sell for a discount off the control stake valuation, that varies depending on the deal. It’s unclear, for example, if Haarmann is buying any possible path to control or decision-making power as part of the 10% stake. The average NHL team’s value jumped 29% in the past year, according to Sportico‘s numbers, largely influenced by the recent sale of the Ottawa Senators for almost $1 billion. That’s had an effect similar to that of Michael Jordan’s $3 billion sale of the Charlotte Hornets in the NBA, which reset the market for teams in the bottom half of the league.
Haarmann oversees Searchlight’s business with his two other founding partners, and serves on the firm’s Investment Committee, its Operating Committee and its Valuation Committee. Searchlight has made 42 investments with $11.6 billion under management. Its portfolio includes a number of companies adjacent to sports, including Endeavor-owned marketing agency 160over90, Spanish-language media giant TelevisaUnivision, and apparel retailer Roots.
Prior to Searchlight, Haarmann was a senior partner at KKR in London. He received his undergraduate degree from Brown University and an MBA from Harvard Business School.
If a deal closes, it would be at least the second investment in the Islanders in the last year. In June, Collins bought into the team and was put in charge of the team’s business operations.
The Islanders two years ago opened the $1.1 billion UBS Arena, in partnership with Oak View Group. The team is also a partner (alongside OVG and former Mets owner Jeff Wilpon) in a $1.3 billion redevelopment project of nearby Belmont Park.
The Islanders are currently 14-7-7, in second place in the Eastern Conference’s Metropolitan Division. The team is averaging 15,776 fans this year, which is about 84% capacity and ranks 27th in the league.
With assistance from Eben Novy-Williams.