60 replies to this topic

[Daniel]

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.

[Triumph]

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?

[Devils731]

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.

[Triumph]

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.

[Devils731]

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.

[Colin226]

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

[msweet]

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.”

[Colin226]

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.”

[msweet]

http://blogs.northje...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.

[newarkdev01]

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.

[DevilMinder]

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.

[Zubie#8]

Fantastic news

[DevilMinder]

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?

[Triumph]

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.

[Devils731]

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?

[devlman]

Nice...now all we need is a hockey team to play games in the Pru

[roomtemp]

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.

[SterioDesign]

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

[newarkdev01]

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.

[sundstrom]

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, 03 January 2013 - 05:20 PM.