Sign in to follow this  
Followers 0
SterioDesign

Devils Complete Refinancing - JVB Sole Owner

61 posts in this topic

Where was the NY Post's insider source of doom on this one?!? Jeez some real news comes along and all of a sudden they know nothing

Share this post


Link to post
Share on other sites

Letter from JVBK today:

The Devils organization is pleased to announce that it has completed a refinancing of its credit facilities with CIT Group acting as lead arranger. 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. In addition, in connection with the refinancing, Jeff Vanderbeek and his affiliated entities purchased the stakes of his co-owners, Brick City Hockey and its related entities.

Statement from Jeff Vanderbeek:

“Today’s announcement is good news for Devils fans though I fully recognize fans' frustration with the work stoppage. Our future is now secure and we can be confident of continued on-ice success. Our team has gone to the Stanley Cup Final 5 times in the last 17 years and following the most recent run to the Stanley Cup Final last year, we are excited about our future -- for Jersey's team and Prudential Center, home to the 2013 NHL Draft.

I am grateful to Mike Gilfillan and Brick City Hockey for our former partnership. 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.”

Share this post


Link to post
Share on other sites

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.”

Share this post


Link to post
Share on other sites

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

The Devils’ financial situation has been straightened out and its ownership settled.

Devils chairmanJeff 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.

Share this post


Link to post
Share on other sites

I don't know about anyone else but this is terrific news heading into what I hope is a resolved labor situation. Even if JVB eventually sells a minority stake or more I think this is a much cleaner situation.

Share this post


Link to post
Share on other sites

I think with all those big concerts people are being drawn to the Rock in numbers that become self sustaining. All it takes one or two times via transit or car to realize the area is safe and the arena itself is top notch and modern.

I am very happy to hear the situation has been solidified a little bit.

Share this post


Link to post
Share on other sites

Lou just told the Star Ledger "It is the same as before, but RIGHT NOW he has total control." Am I looking into that too much and its only a temporary state?

Share this post


Link to post
Share on other sites

Lou just told the Star Ledger "It is the same as before, but RIGHT NOW he has total control." Am I looking into that too much and its only a temporary state?

No - Gulitti reported that Vanderbeek is still looking to sell a piece of the team off to minority investors.

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.

The Devils will never show a "profit" Its the way sports teams do the books but I've never felt the Devils were in dire situation with this. They just weren't making as much money as they'd thought before the economy went to crap.

Share this post


Link to post
Share on other sites

at the end of the day... as long the Devils can spend to the cap and afford to take on extra cash salary compared to the players cap hit well thats all they need "on ice", i dont really care about profit and all that sh!t really

Share this post


Link to post
Share on other sites

at the end of the day... as long the Devils can spend to the cap and afford to take on extra cash salary compared to the players cap hit well thats all they need "on ice", i dont really care about profit and all that sh!t really

Well put, everyone stresses but we have never had to be like the Islanders and have spend all but two seasons over the past two decades in the playoffs...not much to whine about.

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.

you have to be very careful how you categorize a loss. when an owner takes a big salary as a "management fee", that can play with your P & L pretty easily.

Tom Gulitti@TGfireandice

Stable now. RT @jcamps30: @TGfireandice Do you personally think he still has money troubles, or will NJ be somewhat stable now?

Tom Gulitti@TGfireandice

Don't know exact number. Was $78 mil. Maybe half. RT @rrekaj13:@TGfireandice how much debt do Devils now have in total as a result of this?

VBK would rather have "lenders" than "partners". what that means is that he'll get people to loan him $ and he'll pay back w/ team as collateral. They can call themselves partners but they will have zero control of the team.

And the debt on the team maybe less but that's just because its increased on the building. he combined his assets (building and team) to add more value to the entire enterprise and work down the debt.

Edited by sundstrom

Share this post


Link to post
Share on other sites

I just received an email on it from the Devils

Dear Gabriel:

The Devils organization is pleased to announce that it has completed a refinancing of its credit facilities with CIT Group acting as lead arranger. 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. In addition, in connection with the refinancing, Jeff Vanderbeek and his affiliated entities purchased the stakes of his co-owners, Brick City Hockey and its related entities.

Statement from Jeff Vanderbeek:

“Today’s announcement is good news for Devils fans though I fully recognize fans' frustration with the work stoppage. Our future is now secure and we can be confident of continued on-ice success. Our team has gone to the Stanley Cup Final 5 times in the last 17 years and following the most recent run to the Stanley Cup Final last year, we are excited about our future -- for Jersey's team and Prudential Center, home to the 2013 NHL Draft.

I am grateful to Mike Gilfillan and Brick City Hockey for our former partnership. 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.”

Sincerely,

The New Jersey Devils

Share this post


Link to post
Share on other sites

And the debt on the team maybe less but that's just because its increased on the building. he combined his assets (building and team) to add more value to the entire enterprise and work down the debt.

Based on what TG is saying I believe the Devils have no debt now and the Arena debt increased by about $40 million, so a net decrease of $40 million to their total debt, and with the arena being a more solid asset, their total rate should be decreased as well, but that more solid asset may be balanced out by the increase in their debt/asset ratio, so maybe not.

Share this post


Link to post
Share on other sites

I just received an email on it from the Devils

Dear Gabriel:

The Devils organization is pleased to announce that it has completed a refinancing of its credit facilities with CIT Group acting as lead arranger. 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. In addition, in connection with the refinancing, Jeff Vanderbeek and his affiliated entities purchased the stakes of his co-owners, Brick City Hockey and its related entities.

Statement from Jeff Vanderbeek:

“Today’s announcement is good news for Devils fans though I fully recognize fans' frustration with the work stoppage. Our future is now secure and we can be confident of continued on-ice success. Our team has gone to the Stanley Cup Final 5 times in the last 17 years and following the most recent run to the Stanley Cup Final last year, we are excited about our future -- for Jersey's team and Prudential Center, home to the 2013 NHL Draft.

I am grateful to Mike Gilfillan and Brick City Hockey for our former partnership. 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.”

Sincerely,

The New Jersey Devils

I received the same letter except it was Dear Lindsey. I didn't know my name changed. ;)

Share this post


Link to post
Share on other sites

My concern is if the arena defaults...which I don't think will happen...but if the arena defaults or if JVB runs up Devils debt again and tries this all over again.

Edited by TheMazz

Share this post


Link to post
Share on other sites

The Devils are basically sitting in the arena rent free. There is nothing but a winning situation for JVB and the Devils in this situation. JVB bundles the Devils debt into the arena, which is making money, which in turns pays off the Devils debt. I don't see a problem here.

Share this post


Link to post
Share on other sites

Me neither.

However, was I the only one who thought the email was about the end of the lockout?

Share this post


Link to post
Share on other sites

JVB is one sly fox. Say what you will, but relatively speaking, he has set up one of the most favorable financial situations in the upcoming decade or two for a franchise to be in. When you look at how the other franchises are run, and where/how their money comes from, the Devils (like someone just mentioned above) are pretty much operating rent-free with a world-class arena that is capable of sustaining the team. It took some risky maneuvering but from my limited knowledge on the subject, it looks like he's done a pretty good job at favorably positioning the team for the long-run here..

Share this post


Link to post
Share on other sites

JVB is one sly fox. Say what you will, but relatively speaking, he has set up one of the most favorable financial situations in the upcoming decade or two for a franchise to be in. When you look at how the other franchises are run, and where/how their money comes from, the Devils (like someone just mentioned above) are pretty much operating rent-free with a world-class arena that is capable of sustaining the team. It took some risky maneuvering but from my limited knowledge on the subject, it looks like he's done a pretty good job at favorably positioning the team for the long-run here..

Ya as a Devils fan and Newark resident I find myself torn on this. The arena is in my mind a net positive for the city and has created a better overall impression of Newark that could have existed otherwise. I think it has also solidified the core areas between Broad and Penn Station and given momentum to development. That being said moving forward without paying rent and having the city pay them has the reciped for a disaster so I hope a better situation comes about long term.

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