Thread: Devils Default on Loan, Bankruptcy Looming????

Devils default on $100 million loan, according to reports | NJ.com

The Devils have defaulted on a $100 million loan payment due Sept. 1, the New York Post reported this morning. The Post report says the default could open the door for lenders to "push the team into bankruptcy."

The default is an ominous sign for the Devils, whose financial difficulties have been starting to accumulate.

Ray Chambers, who has a non-controlling 47-percent stake in the team, has been looking to sell for over a year after a fallout with principal owner Jeff Vanderbeek.

The Devils, worth an estimated $218 million in the latest Forbes valuation of NHL franchises, have been losing money due to declining attendance and loans related to the Prudential Center, according to Forbes.

The team and city of Newark have also waged a prolonged battle over money owed the city for rent on the arena.

Swell. Can my team start a season without some major distraction for a change? Next summer will be the 'Zach Parise' mess, whether we sign him or don't...Vanderbeek seemed like a good owner but he appears to be in over his head. Not worried yet because that stadium ain't gonna fill itself, but this is troubling news regardless.

Let the rumors of Devils to Quebec City Begin.

Fire & Ice

Here is a statement from the New Jersey Devils on today’s report in the New York Post about the team’s finances.

“Today’s New York Post story is inaccurate. The notions that the Devils are facing bankruptcy or that “the Devils have told their banks to get lost” are patently untrue. The Devils value their relationship with their banks and are confident a refinancing will be completed shortly. As stated previously, ownership is close to finalizing an agreement that would lead to a buyout of Brick City’s share of the company. The organization is also pleased to report that new season ticket sales are up 130% over last year and last week’s on-sale for single game tickets were 260% above last year’s similar period. Finally, the start of training camp was incorrectly reported in the article as tomorrow. In fact, training camp starts on Friday for the rookies and Saturday for the veterans.”

That’s the end of the statement.

Brick City LLC, headed by Ray Chambers and Mike Gilfillan, own 47 percent the Devils and is in the process of completing a sale of its share to managing partner Jeff Vanderbeek, who also owns 47 percent of the team. As the statement above says, that buyout agreement is close to being finalized. The refinancing of the team, which is mentioned in the statement, is contingent on that sale being completed.

Peter Simon owns the remaining six percent of the team.

I don't think they will be moving anytime soon, not with them being the major tenant at the Rock...plus, if you can believe the above, projected attendance is up considerably. Lots of rumors of Vanderbeek/Uncle lou not seeing eye-to-eye could mean that this is Lou's last stand.

Why do I see a team that, with Lou gone and Vanderbeek running it, will be the Yankees of the NHL. Granted, there's still a salary cap. But, I think Vanderbeek will just open the checkbook for anybody he wants, regardless of what the team needs. Lou won't be there to remind him of "cost certainty" and "frugality".

No offense, J.D., you know we love ya! I'll just be disappointed if Jersey goes down that road.

Kansas City Devils sounds like a possibility.

Not sure about anything other than the fact that it's very unlikely they are going to move. Vanderbeek taking sole control does concern me. But Puckrobber, you act like Lou isn't guilty of trying to do too much at times too. He has gone for the home run(Malakhov/Gilmour/Andreychuk/and to some extent Volchenkov, etc.) with mixed results. Sure, these aren't Brad Richards signings but still I would qualify these as high-risk moves. If anything I can see Vanderbeek going MORE moneyball than Lou has been doing. One or two seatfillers(Kovy/Parise) with a bunch of second tier guys surrounding. I know that Vanderbeek is a bigtime Jersey guy and I don't think he would allow the team to move on his watch. He has instituted many Jersey hockey programs and the Rock is almost a museum to minor league college/high school hockey in the area. Time will tell, but either way, Lou will be stepping down soon, I hope the rumored problems between these 2 does not impact the fact that they both want what's best for the team.

New York has too many teams anyway...

Originally Posted by Dr. Naysay

New York has too many teams anyway...

J.D., I know very well how Lou has screwed up from time to time. I've been complaining for several years how he's been able to exploit the loopholes of the CBA concerning injuries, buyouts or Cap waivers, and using them to his advantage. But, I do know that with him in Jersey, they've always had a competitive team year after year with a solid, cohesive unit. If Lou leaves, Vanderbeek will get a "Yes-man" in there, and like you said, 2 or 3 big name players and a bunch of unknowns to fill out the roster. Might be exciting in the short term, but, doesn't sound like success for the long haul of the season.