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Devils owner short, needs $20M more

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They don't owe the city money. This has already been settled, it's actually the other way around for a small amount.

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They don't owe the city money. This has already been settled, it's actually the other way around for a small amount.

The law suit was settled and the city was paid as was the Devils. Then there was the playoffs. Devils owe the City, net net. You must be hoping the Devils don't go bankrupt and Vanderbeek lives on to screw up again?

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The law suit was settled and the city was paid as was the Devils. Then there was the playoffs. Devils owe the City, net net. You must be hoping the Devils don't go bankrupt and Vanderbeek lives on to screw up again?

Newark has no say in this one way or another. Newark is NOT a creditor of the Devils. Just because there was a lawsuit (actually an arbitration) where past obligations were decided, does not make Newark a creditor of the Devils. The Devils have a sweetheart lease with Newark, which is also favorable if the Devils go into bankruptcy because it is very difficult for a landlord to cancel a lease once the tenant declares bankruptcy. Not to mention the fact that, if anything, the Devils will get the financing to meet whatever lease obligations it has to city from its creditors considering that's one of the best assets the team has. Otherwise, the Devils kick up parking and concession revenue to the city. How does it serve Newark's interests at all to cancel those arrangements or be counterproductive enough to force the team out?

You want to say the sky is falling, that's ok. It just helps to have something of clue of what you're talking about.

(I also recall you were singing Vanderbeek's praises when it appeared he was pushing Lou out the door).

ADDENDUM: Actually, so long as the Devils are current on their lease payments (which I'm sure they pay before buying hockey sticks) it is virtually impossible for Newark to kick the Devils out even if the team declares bankruptcy, as the debtor gets to choose whether to continue the lease.

Edited by Daniel

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The law suit was settled and the city was paid as was the Devils. Then there was the playoffs. Devils owe the City, net net. You must be hoping the Devils don't go bankrupt and Vanderbeek lives on to screw up again?

What about the playoffs? Do you understand anything about the Devils lease? Their yearly rent for the ARENA lease (which has nothing really to do with the team, just the amount that is paid for the ARENA, it just happens the Devils own the arena lease) is like $1-1.5M. Newark is someone the Devils can actually AFFORD to pay because Sharpe James ripped off the city. It doesn't matter how much they earn, it's a yearly rate. If anything clearing $30M or whatever it was makes it easier to pay them and whatever side money they owe for OT or whatnot (and I don't even remember if they had to pay THAT due to arbitration)

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I heard about a couple months ago that if the devils declare bankruptcy that the bank takes basically all the money the team has to take care of the debt, and that apparently they will go into the money people have used on season tickets. As a STH is scares the hell out of me to think the money ive put towards next season will just evaporate. For me its a catch 22, cause i want JVB out like everyone else, but if what i heard is true im kind of hoping for selfish reasons that the team doesnt have to file for bankruptcy. Anyone know about that?

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at this point i really dont care anymore... i know the team won't move or anything, worst case scenario they go bankrupt and get a new owner which would not be a bad thing.

i was just worried about that situation cause we had to be somewhat attractive to re-sign Zach or other free agents... certainly didnt go our way so wtv i really dont care anymore lol

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I heard about a couple months ago that if the devils declare bankruptcy that the bank takes basically all the money the team has to take care of the debt, and that apparently they will go into the money people have used on season tickets. As a STH is scares the hell out of me to think the money ive put towards next season will just evaporate. For me its a catch 22, cause i want JVB out like everyone else, but if what i heard is true im kind of hoping for selfish reasons that the team doesnt have to file for bankruptcy. Anyone know about that?

When bankruptcy is declared, there's an automatic stay of all attempts by creditors to collect. In the meantime a plan of reorganization will get worked out, which will almost certainly involve a new owner and revised repayment terms. It's also quite possible that a buyer will simply purchase the outstanding debt and take control of the team that way. How creditors get paid, whether it's from season ticket sales, is irrelevant so long as the team can remain competitive in the amount it can spend, which it can given the fact that there is a salary cap.

Like I keep saying, bankruptcy is not the end of the world, and will probably be beneficial in that Vanderbeek will no longer be in the picture, and will be replaced with healthy ownership. Numerous teams have declared for bankruptcy in the past, including a certain Stanley Cup winning LA Kings.

The real question is...

Does Kevin Smith have $20 mill lying around?

I hope so, if that keeps him from continuing to make crappy movies.

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What does JVB's height have to do with this?

A couple pages later, and this is still the best post of the thread.

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They don't owe the city money. This has already been settled, it's actually the other way around for a small amount.

Newark has no say in this one way or another. Newark is NOT a creditor of the Devils. Just because there was a lawsuit (actually an arbitration) where past obligations were decided, does not make Newark a creditor of the Devils. The Devils have a sweetheart lease with Newark, which is also favorable if the Devils go into bankruptcy because it is very difficult for a landlord to cancel a lease once the tenant declares bankruptcy. Not to mention the fact that, if anything, the Devils will get the financing to meet whatever lease obligations it has to city from its creditors considering that's one of the best assets the team has. Otherwise, the Devils kick up parking and concession revenue to the city. How does it serve Newark's interests at all to cancel those arrangements or be counterproductive enough to force the team out?

You want to say the sky is falling, that's ok. It just helps to have something of clue of what you're talking about.

(I also recall you were singing Vanderbeek's praises when it appeared he was pushing Lou out the door).

ADDENDUM: Actually, so long as the Devils are current on their lease payments (which I'm sure they pay before buying hockey sticks) it is virtually impossible for Newark to kick the Devils out even if the team declares bankruptcy, as the debtor gets to choose whether to continue the lease.

What about the playoffs? Do you understand anything about the Devils lease? Their yearly rent for the ARENA lease (which has nothing really to do with the team, just the amount that is paid for the ARENA, it just happens the Devils own the arena lease) is like $1-1.5M. Newark is someone the Devils can actually AFFORD to pay because Sharpe James ripped off the city. It doesn't matter how much they earn, it's a yearly rate. If anything clearing $30M or whatever it was makes it easier to pay them and whatever side money they owe for OT or whatnot (and I don't even remember if they had to pay THAT due to arbitration)

OK I you say I don't know what I am talking about. I know the rent is fixed. I know the arbitrator made a decision in favour of the Devils. But I said there were the playoffs and you laugh at me. Well the lease calls for parking revenues and percentages plus other items. The Devils have paid the rent not the rest while accepting from the City the money required monthly if they continue to play like in they did in the playoffs. The City is owed money. The City complied with the arbitration decision during the playoffs but the Devils didn't pay their share of extras but paid the rent.

When you understand the relationship between the Devils and the City of Newark get back to me.

I may be wrong but if the Devils go bankrupt I believe there is a provision to break the lease and re-write it with Vanderbeek or the NHL or the new Owner.

I care less so I won't discuss this again. I just want the Donald Trump of the NJ Devils out.

Edited by LucifersDog

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I may be wrong but if the Devils go bankrupt I believe there is a provision to break the lease and re-write it with Vanderbeek or the NHL or the new Owner.

Such a lease provision would be unenforceable.

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JVB is a HUCKSTER! I can't wait to see how this drama filled soap opera plays out over the next few months....

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Chris Botta ‏@ChrisBottaNHL

NJ Devils lenders could force team to bankruptcy tomorrow, but will likely wait until CBA is resolved. Details at @SBJSBD

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Why would the CBA effect this? It's not like the Devils will get a substantial amount more from revenue sharing

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Why would the CBA effect this? It's not like the Devils will get a substantial amount more from revenue sharing

The Devils have no chance of ever getting anything from a revenue sharing provision in the CBA unless something about the team changes drastically. They are a mid to high revenue team.

My guess is that they want someone who's solvent to take over the team and pay off the debts - as I understand it, once bankruptcy is declared, that jeopardizes the amount of money the lenders can expect to get back. But unfortunately I don't subscribe to Sports Business Daily.

Edited by Triumph

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Chris Botta ‏@ChrisBottaNHL

NJ Devils lenders could force team to bankruptcy tomorrow, but will likely wait until CBA is resolved. Details at @SBJSBD

If they are going to force the team into bankruptcy, I don't see any point in waiting until the CBA is resolved to do it from the banks point of view. They might give JVB another extension, but if he hasn't come up with the money by now, he's likely not going to be able to do so. I like him, and he clearly has a passion for the team, but it's time for him to go and putting the team into bankruptcy might be the best thing possible for the long term financial stability of the organization. The lease with the City of Newark will not broken as a result of the bankruptcy and the team will continue to play in the arena (essentially) rent free for the next 25 years. Eliminating and/or restructuring the debt load with a new owner in place is probably needed at this juncture.

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Per "Debtwire", which I can't link to unfortunately, the rumor is that Vanderbeek is trying to get a two-year extension on the maturity of the $80 million that's past due, in exchange for giving the lenders a "coupon bump", a term that I'm unfamiliar with, but which I assume means higher priority.

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Per "Debtwire", which I can't link to unfortunately, the rumor is that Vanderbeek is trying to get a two-year extension on the maturity of the $80 million that's past due, in exchange for giving the lenders a "coupon bump", a term that I'm unfamiliar with, but which I assume means higher priority.

Jesus, why is Vanderbeek delaying the inevitable? What does he honestly gain from all this?

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Jesus, why is Vanderbeek delaying the inevitable? What does he honestly gain from all this?

The illusion that he is a man capable of affording to own an NHL franchise? I mean, if I were him I'd probably do the same thing - he quit his day job. What's he going to have if he's forced out as owner?

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The illusion that he is a man capable of affording to own an NHL franchise? I mean, if I were him I'd probably do the same thing - he quit his day job. What's he going to have if he's forced out as owner?

I know the Devils are in the top half of revenue, but isn't JVB still losing a **** ton trying to scrape together money to pay back the creditors? I feel like this is all counterproductive for him

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The illusion that he is a man capable of affording to own an NHL franchise? I mean, if I were him I'd probably do the same thing - he quit his day job. What's he going to have if he's forced out as owner?

How old is Vanderbeek? Cant find anything on google.

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How old is Vanderbeek? Cant find anything on google.

He was 46/47 when he bought the team so he's probably around 51/52.

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He was 46/47 when he bought the team so he's probably around 51/52.

Cool thanks, I was just curious :cheers:

Edited by Zubie#8

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Per "Debtwire", which I can't link to unfortunately, the rumor is that Vanderbeek is trying to get a two-year extension on the maturity of the $80 million that's past due, in exchange for giving the lenders a "coupon bump", a term that I'm unfamiliar with, but which I assume means higher priority.

In simple terms, it's basically just an interest payment. (It's really a scheduled periodic interest payment made prior to a bond's maturity).

So he's just offering to pay more of an interest rate to buy more time to make the payment. Aka: pushing these events on for another two years.

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