Report: Islanders owner Charles Wang being sued for $10M after backing out of sale

The New York Daily News is reporting New York Islanders owner Charles Wang is being sued by Philadelphia-based lawyer Andrew Barroway for backing out of a proposed $225-million non-binding deal to sell the team.

According to the report by Barbara Ross, Wang had a handshake agreement in place with Barroway for $420 million. Barroway is suing Wang for $10 million.

From Ross:

In papers filed in Manhattan Supreme Court, Barroway’s corporation, NY ICE claims the parties “shook their hands on an agreement” and NY Ice started to line up NHL approval and financing.

However, Wang “without notice," abruptly refused to proceed to close the transaction and honor the terms of their 70-page purchase agreement but instead “improperly sought to renegotiate the already agreed upon price” in March.

In midsummer, according to court papers, Wang demanded $548 million for the team. When Barroway refused, Wang notified him on Aug. 1 that he had sold the team to other bidders.

According to court reports obtained by the New York Daily News, Wang believed he sold the franchise too cheap after hearing the Los Angeles Clippers were worth $2 billion.

The court document states, "The failure to follow through with the sale has caused NY ICE irreparable harm. NY ICE is entitled to the $10 million ‘break up’ fee to which the parties agreed."

Barroway claims Wang decided to pull out of the deal, choosing greed rather than to honor his agreement with NY ICE.

The team was reportedly sold on Aug. 1.