Sign in to follow this  
Followers 0
SterioDesign

Devils Complete Refinancing - JVB Sole Owner

61 posts in this topic

i dont know how true this is but its something

http://www.thefourthperiod.com/news/njd121026.html

In the wake of the New York Islanders announcing that they'll be moving to Brooklyn for the 2015-16 season, the New Jersey Devils could find themselves with an announcement of their own in the coming months.

TFP first broke the news on Aug. 16, and again on Aug. 20, that Canadian billionaire Bill Gallacher was attempting to purchase the Devils.

Gallacher's efforts remain ongoing, a source close to the situation told TFP, and talks could lead to an announcement as early as January 2013.

The Devils, led by majority owner Jeff Vanderbeek, have been in financial turmoil for the last few years and that has led to him quietly shopping the team to Gallacher.

It's believed Gallacher is looking to purchase a majority stake in the Devils

Gallacher, who owns the WHL's Portland Winterhawks and is Chairman at Avenir Operating Corp., came close to buying the Dallas Stars a few years ago, before losing out to fellow-Canadian Tom Gagliardi.

Share this post


Link to post
Share on other sites

New York Post reporting the Devils spontaneously combusted before being sent into the 8th dimension

E4 confirmation

3 people like this

Share this post


Link to post
Share on other sites

i had posted the original back in june, i can believe it and this would be great for the team finances, and would automatically make us contenders for this season/next.

Share this post


Link to post
Share on other sites

FYI this was mentioned in TG's latest blog post -

To head off some questions that might follow from inaccurate reports, sources have indicated to me that shortly after the lockout ends (or the season is canceled), the Devils will announce that the refinancing of the team’s debt and the transfer of shares from Brick City LLC (headed by Michael Gilfillan and funded primarily by Ray Chambers) to managing partner Jeff Vanderbeek has been completed.

That will result in Vandebeek owning 94 percent of the team. The other six percent will continue to be owned by Peter Simon. There wll be no new ownership partners, but after the deal is official, Vanderbeek will likely pursue bringing in at least one.

The transfer of Brick City’s shares to Vanderbeek has essentially been completed already, but must still be reviewed by the NHL’s attorneys, who are otherwise occupied with the lockout right now. Once a new CBA is finalized—or if the season were to be canceled—the league attorneys would then have the time to review the transfer of those shares.

Share this post


Link to post
Share on other sites

I would love this to just be resolved. It seems that ever senerio requires capital being injected into the team to lower the debt to a more managable level.

Share this post


Link to post
Share on other sites

per TG

Expecting announcement from Devils today that Jeff Vanderbeek now owns 100 percent of the team and refinancing of debt complete.

Vanderbeek has bought out the shares of Brick City LLC (Gilfillan/Chambers) and Peter Simon (6%).

Edited by SterioDesign

Share this post


Link to post
Share on other sites

Edit: Stereo beat me to it. :thumbsup:

Edited by DaneykoIsGod

Share this post


Link to post
Share on other sites

I'm guessing this means he is either 100% secure with his finances, or he's doing this as a step to sell some/majority of his shares

Share this post


Link to post
Share on other sites

It took about a year and a half, but the Devils’ financial situation has been straightened out and its ownership settled.

Devils managing partner Jeff Vanderbeek has completed the process of refinancing the team’s debt and buying out his partners, making him the sole owner of the team.

Vanderbeek takes over the 47 percent share of Brick City LLC, which was headed by Mike Gilfillan and Ray Chambers, and the six percent owned by Peter Simon.

“I am grateful to Mike Gilfillan and Brick City Hockey for our former partnership,” Vanderbeek said in a statement. “Together we shared a passion that led to the building of the Prudential Center – truly a shining jewel of a facility and in my view one of the best arenas in the entire world. The Rock is a great legacy for which we will always be proud.”

With CIT group working as the lead arranger, Vanderbeek has been working for months with its creditors to refinance its team debt of about $78 million.

In a news release obtained by The Record, the team states, “The organization believes that its successful refinancing during a work stoppage demonstrates the strength of the Devils franchise and the Prudential Center, enabling it to continue to execute on its business plan.”

http://blogs.northjersey.com/blogs/fireice/comments/jeff_vanderbeek_takes_over_sole_ownership_of_devils_refinancing_of_team_debt_completed/#comments

Share this post


Link to post
Share on other sites

I'm guessing this means he is either 100% secure with his finances, or he's doing this as a step to sell some/majority of his shares

I'm guessing along the same lines. Either way, it's good news.

Looking forward to the Post's doom and gloom spin on this.

Share this post


Link to post
Share on other sites

I'm guessing along the same lines. Either way, it's good news.

Looking forward to the Post's doom and gloom spin on this.

Didn't you hear, this will make it easier for the NHL to take over and move us to Flin Flon

Share this post


Link to post
Share on other sites

I'm guessing this means he is either 100% secure with his finances, or he's doing this as a step to sell some/majority of his shares

It's basically delaying the day of reckoning, i.e. the balloon payment. Short of being the winner of an enormous Megamillions jackpot, there is no way that VBK is financially secure.

Share this post


Link to post
Share on other sites

i'm guessing the calgary sale story by the 4th period is correct and this is just the final step to streamline the sale.

Share this post


Link to post
Share on other sites

i'm guessing the calgary sale story by the 4th period is correct and this is just the final step to streamline the sale.

FWIW, when someone asked TG if he thought that was what was happening, his response was "Absolutely not." He usually has a pretty good feel on these kinds of things.

Share this post


Link to post
Share on other sites

It's basically delaying the day of reckoning, i.e. the balloon payment. Short of being the winner of an enormous Megamillions jackpot, there is no way that VBK is financially secure.

It's not unusual for a business to operate with large loans that they constantly roll over every 5 years. With the new CBA that Devils should be pretty profitable and the Arena seems to be doing well for itself too so the loan should get chipped away slowly while being constantly rolled over.

Share this post


Link to post
Share on other sites

there's a tidbit about combining the arena debt with the team debt which makes sense because the arena is much more valuable than the team. its much better collateral on a loan.

Share this post


Link to post
Share on other sites

It's not unusual for a business to operate with large loans that they constantly roll over every 5 years. With the new CBA that Devils should be pretty profitable and the Arena seems to be doing well for itself too so the loan should get chipped away slowly while being constantly rolled over.

True, but the Devils will never be a enough of a money maker to forever kick the can down the road. Only megateams like Man U can get away with that. One way or another, the Devils will have a new owner in the next couple of years.

Either way though, it's fine with me. Absent an antitrust suit that effectively turns North American hockey into European soccer, the Devils aren't going anywhere. Otherwise, I don't think it'll effect the team personnel-wise at this point.

Share this post


Link to post
Share on other sites

It's not unusual for a business to operate with large loans that they constantly roll over every 5 years. With the new CBA that Devils should be pretty profitable and the Arena seems to be doing well for itself too so the loan should get chipped away slowly while being constantly rolled over.

I don't see how this CBA makes the Devils pretty profitable. the salary cap was pretty close to 60M 2 years ago. do you think NJ revenues have gone up that much since then?

Share this post


Link to post
Share on other sites

True, but the Devils will never be a enough of a money maker to forever kick the can down the road. Only megateams like Man U can get away with that. One way or another, the Devils will have a new owner in the next couple of years.

I'm not sure why you don't think they can kick the can down the road forever. If the Devils keep paying their interest then they'll easily be able to carry that debt load forever. The underlying assets will likely continue to increase in value and the loan will likely slowly be shrinking over time.

I don't see how this CBA makes the Devils pretty profitable. the salary cap was pretty close to 60M 2 years ago. do you think NJ revenues have gone up that much since then?

The Devils were about a break even team under the old CBA, and that was being a fairly aggressive spender. So now they'll be forced to spend less aggressively and there is a league wide 7% slash to player cost.

Share this post


Link to post
Share on other sites

The Devils were about a break even team under the old CBA, and that was being a fairly aggressive spender. So now they'll be forced to spend less aggressively and there is a league wide 7% slash to player cost.

I don't know if I buy that. I don't think the Devils lost tons of money, but I definitely think they lost money over the course of the last CBA.

Share this post


Link to post
Share on other sites

I don't know if I buy that. I don't think the Devils lost tons of money, but I definitely think they lost money over the course of the last CBA.

According to TG the team also paid down much of the $80 million dollar debt, so you have a few cost savings going forward. I'm guessing his rate dropped too, now that it's arena debt instead of team debt.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0