maxpower Posted February 2, 2011 Share Posted February 2, 2011 Gilfillian/Chambers are initiating a total sale. team and arena. this is going to get extremely ugly. looks like this year might not be a one off. ugh. Quote Link to comment Share on other sites More sharing options...
DevilMinder Posted February 2, 2011 Share Posted February 2, 2011 Tom Gulitti On Wednesday 2nd February 2011, @TGfireandice said: Statement from Mike Gilfillan: "Brick City has exercised its contractual rights under its partnership agreement with Jeff Vanderbeek to cause a sale of the entire team and arena rights, subject to certain terms and conditions. We are at the beginning stage of this process and Moag and Company has been retained to assist in those efforts. “Our goal was to use professional sports as a catalyst for economic development in Newark by constructing a state of the art arena for the teams as well as for concerts and family shows. “Brick City feels we have accomplished that objective with our partner Jeff Vanderbeek. “The arena and the teams playing here have also attracted more people to come back to the city in an ongoing effort to restore pride, sports, arts, culture and business to this beautiful city.” Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 and there's the article. this is off to the courts, as obviously mediation didn't work out two summers ago. Quote Link to comment Share on other sites More sharing options...
DevilNurn Posted February 2, 2011 Share Posted February 2, 2011 Tom Gulitti On Wednesday 2nd February 2011, @TGfireandice said: Statement from Mike Gilfillan: "Brick City has exercised its contractual rights under its partnership agreement with Jeff Vanderbeek to cause a sale of the entire team and arena rights, subject to certain terms and conditions. We are at the beginning stage of this process and Moag and Company has been retained to assist in those efforts. “Our goal was to use professional sports as a catalyst for economic development in Newark by constructing a state of the art arena for the teams as well as for concerts and family shows. “Brick City feels we have accomplished that objective with our partner Jeff Vanderbeek. “The arena and the teams playing here have also attracted more people to come back to the city in an ongoing effort to restore pride, sports, arts, culture and business to this beautiful city.” From the future... Quote Link to comment Share on other sites More sharing options...
newarkdev01 Posted February 2, 2011 Share Posted February 2, 2011 and there's the article. this is off to the courts, as obviously mediation didn't work out two summers ago. Mediation? Is this mentioned in the article or are you referencing a prior event? Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 Mediation? Is this mentioned in the article or are you referencing a prior event? they met with Bettman two years ago when it was rumored it was going to fall apart sorta like this. this looks like a go, if so, it's going to court. Quote Link to comment Share on other sites More sharing options...
section 110 Posted February 2, 2011 Share Posted February 2, 2011 So the original story seems to be correct, though now we have clarification. Gilfillan forced this, and it appears that the partnership agreement calls for a sale of the entire team and arena rights rather than giving VBK the option to buy out his partners. I doubt this will go to the courts, both Gilfillan and VBK have apparently both agreed to hire Moag. These types of things are usually spelled out in partnership agreements. I'm confident that VBK will remain in control, though there's always a chance that this gets to an auction process where anyone (i.e. Ballsilie) can bid for the team. Quote Link to comment Share on other sites More sharing options...
newarkdev01 Posted February 2, 2011 Share Posted February 2, 2011 I still think this can be a potentially good situation as you would think part of this sale would involve stipulations that the partner be involved in the moves stated in the article. I had forgotten all the people involved in the hotel deal so it seems that Gilfilan's group isnt' interested. I would love to see the restuarant planned for the front of the arena and side finally happen so hopefully this won't be protracted. Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 So the original story seems to be correct, though now we have clarification. Gilfillan forced this, and it appears that the partnership agreement calls for a sale of the entire team and arena rights rather than giving VBK the option to buy out his partners. I doubt this will go to the courts, both Gilfillan and VBK have apparently both agreed to hire Moag. These types of things are usually spelled out in partnership agreements. I'm confident that VBK will remain in control, though there's always a chance that this gets to an auction process where anyone (i.e. Ballsilie) can bid for the team. you'd have to take the arena too. arena operations are in the sale. this is going to be a whopper of a tag. Chambers gets to look like some kind of local hero while flipping everything for a tidy profit. that pretty much rules out the 0.00001% chance of relocation, that and Chambers is Mr. Newark and won't screw them by leaving them with an empty arena. but this changes alot of things. they could be a much lower budget for the foreseable future. Quote Link to comment Share on other sites More sharing options...
ChilltownDevs2673 Posted February 2, 2011 Share Posted February 2, 2011 Devils co-owner Michael Gilfillan looking to sell stake in team Published: Tuesday, February 01, 2011, 9:05 PM Updated: Tuesday, February 01, 2011, 10:43 PM By Star-Ledger Staff Bruce Bennett/Getty Images Owner Jeff Vanderbeek will still maintain his stake in the Devils. By David Giambusso and Mark Mueller/The Star-Ledger New Jersey Devils co-owner Michael Gilfillan, a minority partner in the franchise for more than a decade and a key figure in the development of the Prudential Center, is looking to sell his stake in the team. Devils principal owner Jeff Vanderbeek confirmed in a statement today that Gilfillan, president of Brick City Hockey, had retained Baltimore investment bank Moag & Co. to explore the sale of his share. Brick City is controlled by Gilfillan and his father-in-law, philanthropist Raymond Chambers. "My partner, Brick City, and I have different visions for the franchise," Vanderbeek said in the statement. "While Brick City has a right, under our partnership agreement, to explore a sale and Moag & Co. has been retained to assist in these efforts, I anticipate maintaining a controlling interest." Vanderbeek, a former Lehman Brothers executive who took control of the Devils in 2004, owns 50 percent of the team. It wasn’t immediately clear how a sale of Gilfillan’s minority interest would affect the club, which has played at the Prudential Center since the Newark arena opened in 2007. Vanderbeek’s brief statement did not elaborate on his differences with Gilfillan, and the principal owner declined further comment. In his own statement, Gilfillan said Brick City had achieved its goal of using sports as a catalyst for economic development in Newark, with the arena drawing visitors not just for hockey, but for concerts and other shows. "The arena and the teams playing here have also attracted more people to come back to the city in an ongoing effort to restore pride, sports, arts, culture and business to this beautiful city," Gilfillan said. According to two people with knowledge of the situation, Gilfillan and Chambers don’t want to invest millions of dollars more into the franchise, which is building two high-end restaurants in the arena and contributing to the development of a nearby hotel. The sources spoke on the condition of anonymity because they were not publicly authorized to discuss the matter. The partnership paid $125 million for the Devils in 2004. Late last year, Forbes magazine estimated the team’s value at $218 million, making it the 11th most valuable franchise in the National Hockey League. Both the magazine and Vanderbeek have said the team is profitable, though attendance, never a strong point, has sagged even more this year as the Devils struggle through a miserable season, with the worst record in the league. Before this season, the team enjoyed tremendous success on the ice, winning the Stanley Cup in 1995, 2000 and 2003 and making the playoffs 13 consecutive times. For most of that run, the team played in the Meadowlands stadium. The potential sale of Gilfillan’s interest in the team remains in the early stages. Moag & Co., which specializes in sports transactions, sent out a letter to prospective investors on Jan. 25. Vanderbeek issued his statement in response to a Bloomberg News report, which said he was putting the team up for sale himself. Since taking control of the Devils, Vanderbeek has been the face of the franchise, pushing hard and publicly for the Newark arena. Gilfillan has been more apt to remain in the background, but he’s also played an important role. A former co-chair of YankeeNets, Gilfillan has been on the board of directors of Puck Holdings, the entity that controls the Devils, since 2000. He also worked to bring an arena to Newark since 1998. With the potential sale, the Devils join a growing number of NHL franchises in flux. At least eight other teams are up for sale or are seeking minority investors. In the latest case, the owners of the Buffalo Sabres announced yesterday that they had sold the team. Staff writers Rich Chere, Ted Sherman and Eliot Caroom contributed to this story. http://www.nj.com/devils/index.ssf/2011/02/devils_co-owner_michael_gilfil.html Quote Link to comment Share on other sites More sharing options...
newarkdev01 Posted February 2, 2011 Share Posted February 2, 2011 (edited) Dammit post went up first...none the less this is the sort of news I actually did want to see. I am tired of these projects languishing. Edited February 2, 2011 by newarkdev01 Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 well, they're definitely going to languish now with this in limbo. Globe and Mail in Toronto threw around a $600M+ number. I don't see how JVB can buy himself back in at that number. Chambers comes across as a sleazebag here. he made a living borrowing money and running pump and dumps buying businesses. this must have been another case in his eyes. Quote Link to comment Share on other sites More sharing options...
ThreeCups Posted February 2, 2011 Share Posted February 2, 2011 well, they're definitely going to languish now with this in limbo. Globe and Mail in Toronto threw around a $600M+ number. I don't see how JVB can buy himself back in at that number. Chambers comes across as a sleazebag here. he made a living borrowing money and running pump and dumps buying businesses. this must have been another case in his eyes. What do you mean by "I don't see how JVB can buy himself back in at that number"? His half isn't being sold.... Quote Link to comment Share on other sites More sharing options...
MadDog2020 Posted February 2, 2011 Share Posted February 2, 2011 What do you mean by "I don't see how JVB can buy himself back in at that number"? His half isn't being sold.... What Max is referring to is the apparent contractual stipulation that allows Gilfillan and Chambers to explore a full sale of the team and the arena to the highest bidder. Meaning VBK would have to buy the team and arena back. Which won't happen for $600 mil. Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 What Max is referring to is the apparent contractual stipulation that allows Gilfillan and Chambers to explore a full sale of the team and the arena to the highest bidder. Meaning VBK would have to buy the team and arena back. Which won't happen for $600 mil. yeah, you play a shell game here. but the problem is that JVB is going to need partners to complete the sale. and one of his primary partners is organizing the sale. so he needs a new one. and to make things worse, the arena gets in on the sale, putting the value of the sale through the roof. the Devils aren't worth as much without the arena, that unwinding could be done. so, if he can organize 75% of the sale price, that's not enough. seeya. I mean, don't cry for him, he walks away with a truckload of money in that case, but his dreams of operating an arena and sucking all of that revenue out, they go bye-bye. I would guess he's far more pissed abou the arena than the Devils. I always figured he would get out of the Devils business at some point. Looks like he got beaten to the punch. Quote Link to comment Share on other sites More sharing options...
ThreeCups Posted February 2, 2011 Share Posted February 2, 2011 What Max is referring to is the apparent contractual stipulation that allows Gilfillan and Chambers to explore a full sale of the team and the arena to the highest bidder. Meaning VBK would have to buy the team and arena back. Which won't happen for $600 mil. I just read the full details somewhere. What kind of crazy stipulation is this?!? Well, if VBK is 50% owner and the team is sold...can't he just buy back in for what he would have been owed from the sale?!? Quote Link to comment Share on other sites More sharing options...
Triumph Posted February 2, 2011 Share Posted February 2, 2011 What Max is referring to is the apparent contractual stipulation that allows Gilfillan and Chambers to explore a full sale of the team and the arena to the highest bidder. Meaning VBK would have to buy the team and arena back. Which won't happen for $600 mil. I don't see who's buying in at that number, anywhere, though. The fact that both parties have at least agreed on a third party to help find buyers is a good sign. Quote Link to comment Share on other sites More sharing options...
newarkdev01 Posted February 2, 2011 Share Posted February 2, 2011 well, they're definitely going to languish now with this in limbo. Globe and Mail in Toronto threw around a $600M+ number. I don't see how JVB can buy himself back in at that number. Chambers comes across as a sleazebag here. he made a living borrowing money and running pump and dumps buying businesses. this must have been another case in his eyes. I'm loosing your logic here on this one in regards to JVB, he doesn't need to buy anything. The company goes for sale and he owns a majority state if anything as long as the buyer is willing to pay top dollar, he actually makes out as his share is worth more. Quote Link to comment Share on other sites More sharing options...
ThreeCups Posted February 2, 2011 Share Posted February 2, 2011 yeah, you play a shell game here. but the problem is that JVB is going to need partners to complete the sale. and one of his primary partners is organizing the sale. so he needs a new one. and to make things worse, the arena gets in on the sale, putting the value of the sale through the roof. the Devils aren't worth as much without the arena, that unwinding could be done. so, if he can organize 75% of the sale price, that's not enough. seeya. I mean, don't cry for him, he walks away with a truckload of money in that case, but his dreams of operating an arena and sucking all of that revenue out, they go bye-bye. I would guess he's far more pissed abou the arena than the Devils. I always figured he would get out of the Devils business at some point. Looks like he got beaten to the punch. Damn, this all seems like it is headed for a courtroom near you! I am pretty confident that we have seen Zach play his last game in a Devils jersey. This debacle is going to be the KO blow to our chances of resigning him..... Quote Link to comment Share on other sites More sharing options...
MadDog2020 Posted February 2, 2011 Share Posted February 2, 2011 I don't see who's buying in at that number, anywhere, though. The fact that both parties have at least agreed on a third party to help find buyers is a good sign. This is true, but there could be some nutjob out there with a lot of fvck you money that wants to own a pro sports team so he can brag to his friends (think Mark Cuban). I mean, that number is ridiculous, but all I'm saying is nothing surprises me anymore. Quote Link to comment Share on other sites More sharing options...
NJDevs4978 Posted February 2, 2011 Share Posted February 2, 2011 I'm beside myself right now...two of my franchises (Devils and Mets) up for sale in a week's time. What are the odds of that?! And both ownership groups lying and withholding info from the fans. This one came even more out of left field than the Met nonsense. Quote Link to comment Share on other sites More sharing options...
MadDog2020 Posted February 2, 2011 Share Posted February 2, 2011 I'm beside myself right now...two of my franchises (Devils and Mets) up for sale in a week's time. What are the odds of that?! And both ownership groups lying and withholding info from the fans. This one came even more out of left field than the Met nonsense. I hear ya, its been a rough go of it for me too. Remember that Steve Ross owns my football team. Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 I'm loosing your logic here on this one in regards to JVB, he doesn't need to buy anything. The company goes for sale and he owns a majority state if anything as long as the buyer is willing to pay top dollar, he actually makes out as his share is worth more. he has to re-buy his portion. like I said, a shell game. but if he doesn't have the partnership to obtain 100% of the money to make the bid, he either needs to add in more of his own money or accept the golden parachute. like I said, don't feel bad for him. I'm just freaking annoyed because there is no way this can be a positive for the team. worst case is Atlanta/TB/Chicago mess that wrecks the franchise, semi-worst case is some Golisano type who runs the team as a break even, while they reap the arena benefits. his 50% does him jack sh!t here, if the way the sale is being approached is true. he needs to go find another 50%. so, even with the other investors in, including Lou, you have to cover the gap left by this flip scam by Chambers and his son in law. IMO, the arena is extremely valuable because it's almost as if they own it without all of the problems of ownership. sh!t, they don't even pay rent. and AEG is gone. and bookings are up. Quote Link to comment Share on other sites More sharing options...
maxpower Posted February 2, 2011 Share Posted February 2, 2011 oh yeah, and no matter what they tell you, it was built with state money. so that makes it even more hilarious. only in Jersey can you build something that is 2/3rds subsidized by the state, that ends up having a powerless authority "owning" it, and then flip it for HUGE PROFITS! lol. I guess it's small fry compared to Xanadu, a $200M ripoff instead of a $1B ripoff. 1 Quote Link to comment Share on other sites More sharing options...
RowdyFan42 Posted February 2, 2011 Share Posted February 2, 2011 (edited) Part of a comment on TG's latest blog post about this: It will come down to the partnership agreement what the defition of “is” is. Brick City may have the right to force the sale of the “whole” team but it is just a play to determine what the “whole” value of the team is so Brick city can get paid it’s % of ownership. All the while JVB will retain his 50% share, and other partners theirs. I realize the commenter is just speculating like the rest of us, but his analysis makes sense to me. Edited February 2, 2011 by RowdyFan42 Quote Link to comment Share on other sites More sharing options...
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