The Islanders filed a lawsuit against the arena management company, claiming that SMG "failed to fulfill the terms of an arena sublease and owes the club at least $1 million." SMG countered on Thursday by arguing that the Islanders defaulted on more than $10 million payments that the team owed before the July 31 expiration date of their lease at Nassau Coliseum. (Newsday, Aug. 20)
The Islanders filed their suit in state Supreme Court on August 10 and attorneys for SMG requested on Thursday that the case be moved to U.S. District Court for the Eastern District.
The sublease in question is one that was agreed upon in the final days of former Nassau County Executive Thomas Suozzi time in office. It does require the Islanders to pay SMG a lump sum of $7 million at the end of the lease as part of a deferred rent-payment plan.
The Nassau Coliseum is about to go through a $261 million renovation by developer Bruce Ratner to downsize and modernize the outdated Long Island venue.