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Report- Devils May Soon Be Controlled By The NHL

from Mike Ozanian of Forbes,

The New Jersey Devilsare likely to be taken over by the National Hockey League around the time the season begins next month when teams begin cutting payroll checks, 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.

Non-NHL events are down at the Prudential Center, also hurting Vanderbeek’s financial situation. One reason: arena operators prepay a portion of the money they are going to pay acts, like rock bands and the circus, and the Devils do not have the cash to book events. During the first quarter of 2013 the Prudential Center was not among the world’s top 50 busiest arenas. The prior year it was ranked 11th-busiest.

continued

added 11:59am,

 

added 12:14pm,

from Tim Panaccio of CSNPhilly,

Neither the NHL nor the Devils would comment to Forbes, but league deputy commissioner Bill Daly denied the takeover to CSNPhilly.com on Thursday morning.
 
“I haven't seen the Forbes article,” wrote Daly, who is on vacation with his family, in an e-mail. “But to the extent it suggests that league is intending to take over the club, it is inaccurate.”

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Filed in: NHL Teams, New Jersey Devils, | KK Hockey | Permalink
 

Comments

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I don’t pay as close attention to the off the field/court news in the other major sports, but does the NFL, MLB, or NBA deal with this much owner and $ related *#$%@&? I sure don’t hear about it as often.

Posted by Chris M on 08/08/13 at 09:34 AM ET

Hootinani's avatar

They should be done with finding a buyer for the Devils right around the time they will have to start relocating the Coyotes.  It works out perfectly.

Posted by Hootinani on 08/08/13 at 09:50 AM ET

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Move them to Phoenix.  I hear that’s a great hockey market.

Posted by HockeyinHD on 08/08/13 at 10:03 AM ET

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I wonder if Lou has a go-bag under his desk.

Posted by CallMeJerry on 08/08/13 at 10:44 AM ET

Red Winger's avatar

The NHL enjoyed ownership so much in Phoenix they are diving back into the pool again.

Hockey does not belong in Phoenix, and the metropolitan NYC region does not need three teams.

Posted by Red Winger from Sault Ste Marie on 08/08/13 at 11:31 AM ET

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Lack of surprise or concern for the billionaire. I’m sure he’s not losing money personally in this deal.
I really don’t understand how someone can run the arena and, presumably, get concessions and parking money and still not take in money hand over fist.

Posted by teldar on 08/08/13 at 01:28 PM ET

phillyd's avatar

Posted by teldar on 08/08/13 at 02:28 PM ET

You need to do a little bit of research on this. The Devils situation is directly tied to the debt their owner, Jeff Vanderbeek, has in other entities as well as the Devils. Think of what the Dallas Stars and Texas Rangers went through for a more apt comparison then necessarily the Coyotes.

Posted by phillyd from Southern New Jersey on 08/08/13 at 01:36 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.

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