[Rumour] Update: Devils sold to Josh Harris

[sureLoss]

http://www.thefourthperiod.com/colum.../dp130628.html

Simply put, the Devils are in one giant mess.

According to numerous sources, the Devils were even late on paying their players at points this past season. They never missed a payment, I'm told, but some payments were indeed "delayed."

It's gotten so bad, the NHL has since taken over and is operating the franchise, which is making it extremely difficult for Lou Lamoriello to do the "GM" part of his job. On Wednesday, the NHLPA sent out a note to its membership concerning the state of the team, and informed them that they are monitoring the situations of both the Devils and Coyotes, and are taking both matters extremely seriously. A second memo is expected.

But like I said earlier, there is a light at the end of this ugly tunnel.

[sureLoss]

From the NHLPA memo:

http://www.forbes.com/sites/mikeozan...drew-barraway/

The memorandum dated June 27, 2103 which I have seen, reads in part:


“The New Jersey Devils and the current ownership group headed by Jeff Vanderbeek have recently been experiencing serious cash flow issues. This has resulted in late or missed payments (including required pension and escrow payments) and League intervention and funding. Importantly, we believe that all money owed to Players, including pension and escrow, has now been paid.”


“Recently, the Club was able to arrange a significant infusion of debt capital ($30 million) from an investor that is interested in purchasing the the Club from Vanderbeek. We understand from League officials that the new investor, Andrew Barraway, is currently negotiating with Vanderbeek and thier expectation is that either Barroway or another ownership group will end up owning the team within the next 120 days or so.”


The memo does not mention purchase price, nor does it say how much total debt is tied to the team and arena. One banker estimated the liabilities to be well over $230 million.

[Canada 02]

They should fire Lou Lamoriello and David Conte

[valo403]

The Devils current ownership saddled themselves with some serious debt with new arena AFAIK, which is likely at the heart of the whole situation.

[Erick Estrada]

Wow that's just not good. I hope they get sold sooner than later as it's bad enough with the ongiong Coyotes saga.

[Devils'Advocate]

Originally Posted by valo403

The Devils current ownership saddled themselves with some serious debt with new arena AFAIK, which is likely at the heart of the whole situation.

Not to mention that most of Vanderbeeks wealth was held in Leiman Brothers stock.

[valo403]

Originally Posted by Erick Estrada

Wow that's just not good. I hope they get sold sooner than later as it's bad enough with the ongiong Coyotes saga.

REally not even a remotely close situation. The Devils is a case of an owner who is way overleveraged, he can't service the debt, but the market is still strong and there is desire to own a team there. Phoenix, well I guess we'll see on Tuesday.

[TorqueDog]

Originally Posted by Devils'Advocate

Not to mention that most of Vanderbeeks wealth was held in Leiman Brothers stock.

That sent shivers down my spine.

[Badgers Nose]

HAHA! Awesome. Perfect timing too right before the draft in their building. NHL rules!

How could such a great franchise be in such bad shape? Did it start about the time Lou had to get Ilya? More proof that you have to protect owners from themselves?

[Badgers Nose]

Originally Posted by Canada 02

They should fire Lou Lamoriello and David Conte

Why Lou? The worst mistakes he made were at gunpoint from ownership, no?

[Resolute 14]

Originally Posted by Erick Estrada

Wow that's just not good. I hope they get sold sooner than later as it's bad enough with the ongiong Coyotes saga.

I believe the Devils mess has been ongoing for several years as well. But the NHL has been working that one in the background, just as it prefers to.

[The Swedish Flame]

I've not heard much about this mess. Anyone know exactly how bad it is? It sounds like the situation is horrible.

[Buff]

Originally Posted by Canada 02

They should fire Lou Lamoriello and David Conte

Why Conte? I thought he was really good at finding good picks without needing to pick in the top 5.

[Resolute 14]

Originally Posted by The Swedish Flame

I've not heard much about this mess. Anyone know exactly how bad it is? It sounds like the situation is horrible.

The team's ownership group was in horrible financial shape for numerous reasons, not the least of which is building a shiny new arena with borrowed money right before the economy fell apart. The team was buried under debt, and it has been rumoured that the league has forwarded the team money to pay the bills/players more than once. Raking in a ton of money from their run to the finals gave the team a short boost, and Vanderbeek assumed sole control of the team this January while restructuring the debt. But, missing the playoffs this year likely put them right back to square 1.

[sureLoss]

Forbes reporting the NHL is about to step in and take over the Devils

Eric Macramalla ‏@EricOnSportsLaw 20m Forbes: NHL to take over Devils; $230M in debt and team owner Jeff Vanderbeek missed the first payment on a recently restructured bank loan

http://www.forbes.com/sites/mikeozan...evils-looming/

The New Jersey Devils are likely to be taken over by the National Hockey League around the time the season begins next month when teams begin cutting payroll checks unless a buyer for the team quickly steps up, according to multiple sources.
Neither the NHL or the Devils would comment on the situation.


The Devils have $230 million of debt and team owner Jeff Vanderbeek missed the first payment on a recently restructured bank loan. The team’s annual debt payment is around $15 million a year and in the past the Devils have already used prepayments of future revenue streams to pay bills. Andrew Barroway was poised to buy the hockey team and operating rights to the Prudential Center, but withdrew his offer within the past two weeks after getting a closer look at the team’s books.

[Buff]

Well, Kovalchuk's retirement didn't help their financial situation in the short term.

[sureLoss]

good time to offersheet Henrique?

[valo403]

Ha, Forbe's reports that on the same day that 2 local sources report that there are 2 groups looking to buy them, including one headed by the current Philadelphia 76ers owner who is one of the richest people in the country. Either way, they aren't going anywhere.

http://www.northjersey.com/sports/21...her_buyer.html

[zukes]

With the NHL talking expansion, but hoping to shoe horn two teams into the Pacific NW (Seattle and Portland) and keep from having to move a team from the East back to the West, this works out well since people will (rightly) complain that Toronto and Quebec City are far more deserving of an expansion team. They will instead get the Devils.

Markham Devils?

[valo403]

Originally Posted by zukes

With the NHL talking expansion, but hoping to shoe horn two teams into the Pacific NW (Seattle and Portland) and keep from having to move a team from the East back to the West, this works out well since people will (rightly) complain that Toronto and Quebec City are far more deserving of an expansion team. They will instead get the Devils.

Markham Devils?

The Devils are not moving. Not a chance.