Islanders co-owner Steven Gluckstern has threatened NHL commissioner Gary Bettman that he will cut the team’s payroll to $12 million next season if he doesn’t have a new arena deal with Nassau County by July, a league insider told The Post.
If Gluckstern, whose Isles lost $20 million this season, goes through with his massive payroll-cutting threat, it could prompt the auction of Ziggy Palffy. Palffy is scheduled to make $5 million next season.
The Isles finished the season with a payroll believed to be about $22M.
Bettman has scrambled over the past month to broker a deal that has Gluckstern and the Milstein brothers selling to SFX Entertainment, whose point man is former MSG president Bob Gutkowski. Bettman met again last week with SFX owners Bob Sillerman and Howard Tytel, whose company owns the Westbury Music Fair.
“Bettman desperately wants to get the thing sold,” a league source familiar with Gluckstern’s thinking told The Post. “It’s why Gary’s really motivated to get this SFX thing done because he’s getting threats from Gluckstern. I think Steven’s trying to scare people.”
Indeed, Gluckstern’s $12M threat could be a bluff, aimed at putting fire to the county’s feet. But it’s also possible he’s trying to avoid winding up like the bankrupt Pittsburgh Penguins.
“Steven’s made it clear he’s not going to lose $20 million again,” the league insider said. “He says he’ll run the team bare bones until the lease is up in 2014. He does plan on lowering ticket prices. But if Islander fans want a [competitive] team, they’re going to have to petition the county.”
Gluckstern, contacted by The Post, didn’t return phone calls yesterday.
With the SFX deal moving along slowly, Bettman is now trying to restart arena talks with the county. According to county negotiator Morton Certilman, Bettman, who was negotiating on behalf of the Isles, put an abrupt halt to arena talks in March.
Gluckstern has told people he would try to retain Palffy, defenseman Kenny Jonsson and goalie Felix Potvin under the $12 million ceiling. But paying all three would seem almost impossible for $12 million. The combined salaries next season of Palffy, Jonsson ($1.7M) and restricted-free agent Potvin ($2.8M-plus) total about $9.5M.