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Devils Announce Major News Conference

Following up to the post Paul made earlier about how the Cost To Buy The Devils could reach Well In Excess Of $300M the Devils Public Reltasions department has announced this evening that the Devils will be hosting a major news conference tomorrow (Thrusday, 15 Aug. 2013) at 11:00 a.m. EST.

According to Tom Gulitti at Fire Ice:

The official announcement will come in a Prudential Center news conference at a 11 a.m. Thursday that a controlling ownership share in the New Jersey Devils and the lucrative operating rights for the arena have been sold to a group headed by investment banker Joshua Harris, multiple sources told The Record.

An individual with knowledge of the sale agreement said Harris’s group will pay “more than $320 million,” a stunning price for a team that has been mired in debt.

Harris and his primary partner, David Blitzer, are also part of the group that purchased the Philadelphia 76ers for a reported $280 million in 2011.
 

Filed in: | KK Hockey | Permalink
  Tags: new+jersey+devils, new+jersey+devils+ownership

Comments

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Love this story.  In order to make the team look ‘valuable’ the NHL is noising about the total price ‘paid’ for the team.  This is like when THQ (IIRC) sold for a $1.  Yeah, it was $1, but then the buyer had to assume however many tens of millions in debt tied to the business.

Same thing here.

The actual capital being paid for the Devils is likely barely a third of the advertised ‘purchase price’.  The rest is all previously-accrued red ink.

Which, of course, is a pretty awesome write-down tool for those actuarially inclined.

Once again, an NHL team is being bought to serve as the loss leader for an incorporated/LLC’d organization, where the main value is the operating privileges of the arena.  Wonderful.  I’m sure that’ll really strengthen hockey ops.

Posted by HockeyinHD on 08/14/13 at 07:58 PM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

Email Paul anytime at pk@kuklaskorner.com