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Ray Chambers Sells 47% Stake


Derlique

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Interesting news. Terrible paper as usual. I mean is this sh*t necessary:

They literally have at least one negative statement about the team in each paragraph.

Not sure anything said isn't true, is it? The numbers speak for themselves, hopefully something turns things around.

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According to that weird debtwire post Daniel made, 2014. Don't remember the date but it's probably 9/1 too. That one is on the arena and I think is bigger.

Loan of 80m on team at libor + 300bps due on 9/1/11 - team itself is collateral

Loan of 107m at libor + 300bps on team due 2014 - arena is collateral on that one

CIT is agent on both loans and is seeking an exit.

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Loan of 80m on team at libor + 300bps due on 9/1/11 - team itself is collateral

Loan of 107m at libor + 300bps on team due 2014 - arena is collateral on that one

CIT is agent on both loans and is seeking an exit.

Ok, so if that is the case, the $25 Mill goes toward the first loan reducing it to $55 Mill. The second loan should be getting paid for by the arena profits (because the arena itself is actually profitable from what I understand) and in an additional 3 years of paying it there should be more progress towards reducing the principle, no?

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Ok, so if that is the case, the $25 Mill goes toward the first loan reducing it to $55 Mill. The second loan should be getting paid for by the arena profits (because the arena itself is actually profitable from what I understand) and in an additional 3 years of paying it there should be more progress towards reducing the principle, no?

Not really, the debt owed on loan #1 is $100M. So there's interest in play. A refinance probably isn't going to be at the greatest of rates and that still needs to be paid down. As does the second loan. You just can't stop paying it. I mean if the interest built into the $80M loan is $20M, what's the interest built in on the $107M loan? Also if that's for the arena and not for team operations, that's a construction loan, the building opened a year before the sh!t hit the fan, it could be higher.

You're not escaping this short of winning Megamillions. JVB will probably have to sell out eventually in much the same fashion.

It's also a pretty crappy time to have to go to the refinance window.

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I'm a big conspiracy theorist...I think the Devils and Prudential Center as a whole are making money while the "hockey operations" side is losing money. Showing one part of the business "in the red" (no pun intended) could have benefits, especially when having debts can have tax incentives for the owners.

I wouldn't be surprised in JVB is laundering dirty money from his financial days via the Devils and the Pru Center. Perhaps Chambers said, "thanks but no thanks...they got Maydoff and the Wilpons, now I'm out before this dork gets me in trouble..."

I dunno, just a thought....

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http://www.nj.com/de...ek_obtains.html

Devils owner Jeff Vanderbeek, searching for a way to rescue his financially-troubled hockey team, has reportedly agreed to a deal in which co-owner Ray Chambers would pay lenders $25 million while giving Vanderbeek another 47 percent stake in the NHL club.

And we wondered why the Devils started dumping contract left and right this offseason and couldn't sign Zach long-term :rolleyes:

Maybe this is what Chico meant by 'it would take a miracle' to re-sign Zach :P

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Ppl, chambers wasn't in it for the money but rather to spur development. Why doesn't anyone focus on this? His selling isn't a big deal, however his having to pay 25 mill to sell is concerning.

sh!t article too.

Bullsh!t, Chambers is the equivalent of someone who tries to flip houses, in a business sense. He definitely was looking to make a profit on an eventual sale. And he didn't "pay $25M to sell". He was forgiven of a sh!tload of debt, probably around $120M, maybe even more. That is a "payment" for his share of the team. Debt forgiveness.

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And we wondered why the Devils started dumping contract left and right this offseason and couldn't sign Zach long-term :rolleyes:

Maybe this is what Chico meant by 'it would take a miracle' to re-sign Zach :P

They have a $60M payroll. Hardly operating like a "broke" team. Colin White and Andy Greene, for example, are getting paid around exactly the same as they were last year, when you consider the cost of replacement. If you're short-term broke, you don't sign Parise, period.

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Bullsh!t, Chambers is the equivalent of someone who tries to flip houses, in a business sense. He definitely was looking to make a profit on an eventual sale. And he didn't "pay $25M to sell". He was forgiven of a sh!tload of debt, probably around $120M, maybe even more. That is a "payment" for his share of the team. Debt forgiveness.

Debt forgiveness only matters if he had personally guaranteed the loan. Otherwise the Devils declaring bankruptcy or being taken to court would be better for his pocketbook than paying out 25 million.

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Debt forgiveness only matters if he had personally guaranteed the loan. Otherwise the Devils declaring bankruptcy or being taken to court would be better for his pocketbook than paying out 25 million.

Well, put two and two together. :lol: Chambers isn't a goofball, he's successful at what he does. That's his payment. And considering how bloated the Stars debt got before they went under, it's probably not the worst deal ever for him.

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Whoahh.... Its way too late and im a bit too drunk to put all this together...

So bottom line... Is this good... Or bad ?

Like everything else around this since last February, nobody really knows...it's probably a good thing VBK has undisputed control now, but it's ominous in terms of finances that Chambers had to pay $25 million out of pocket AND give up 47% of the team just so he could get rid of his own debt.

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Well, put two and two together. :lol: Chambers isn't a goofball, he's successful at what he does. That's his payment. And considering how bloated the Stars debt got before they went under, it's probably not the worst deal ever for him.

I'm more waiting for a second confirmation. The Post has been fast and loose with this story so far. I'm confused how Chambers thought $210 million was reasonable at first but decided giving away $25 million made sense too, the Post says both those things happened.

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I'm more waiting for a second confirmation. The Post has been fast and loose with this story so far. I'm confused how Chambers thought $210 million was reasonable at first but decided giving away $25 million made sense too, the Post says both those things happened.

Well, $210M is relative. I wouldn't be surprised if he was looking for a cashout post debt. Even if he sells his part, whoever is assuming the debt isn't going to pay him say $210M and then assume the debt. In that case he'd make say $80-90M. But that buyer would have to be on crack.

Yeah, I understand the source is all over the place, but saying something is sold, you're making a commitment to your story there. That's past the point of speculation.

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Well, $210M is relative. I wouldn't be surprised if he was looking for a cashout post debt. Even if he sells his part, whoever is assuming the debt isn't going to pay him say $210M and then assume the debt. In that case he'd make say $80-90M. But that buyer would have to be on crack.

Yeah, I understand the source is all over the place, but saying something is sold, you're making a commitment to your story there. That's past the point of speculation.

One of the earlier stories also said he had a source saying bankruptcy had already happened. Even this story says the purchase might not go through if it doesn't win approvals, which it may not...according to the story.

Even in the scenario you're presenting, which is a valid one, we're saying Chambers was about $115 million dollars off in his valuation of his part of the team in the original story.

Edited by Devils731
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Vanderbeek knows that all-time great goaltender Martin Brodeur, making more than $5 million this year, is likely to retire after the season. He also knows that Zach Parise – who makes female hearts go aflutter and who is a big fan favorite across the board – will be a free agent. Guess what that cost savings re Brodeur goes as a down payment toward?Bottom line is, are the Devils more likely to sign Parise with Chambers still aboard?

No.

I like how the writer, Brennan, links Chambers selling to the Devils' future re-signing of Parise. ... Gives us Devils/Parise fans some hope.

Edited by 95Crash
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Brennan is pretty reliable, and I agree with him. If Vanderbeek has 94% of the Devils, he won't let Parise walk, even if it means he has to reach a little lower in his pockets. The guy lives and breathes Devils hockey, and I doubt he would stay owner only to watch the team head into the crapper.

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http://www.nj.com/devils/index.ssf/2011/09/devils_co-owner_seeks_to_relin.html?utm_medium=twitter&utm_source=twitterfeed

An organizational source close to the negotiations said the Brick City LLC holding company, operated by Chambers’ son-in-law Michael Gilfillan, has agreed to pay off a $23 million loan to a lender as part of an arrangement that would allow Chambers, a billionaire philanthropist, to give up his 47 percent share in the team. The other main co-owner, Jeffrey Vanderbeek, still owes $23 million from the joint loan that paid for team operations, the source said.

“When Ray initially got involved, it wasn’t to run a sports franchise, it was for Newark’s continued revitalization, to get an arena built and a team there,” a source said. “Jeff was more involved in what happened on the ice.

“Ray thinks it’s stabilized, so why not let the guy who knows the most about hockey move it forward?”

Chere says he has 2 sources that basically backup the Post story.

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This plays into exactly what I've been thinking is going on:

Chambers was never in it for the long haul.. He invested in the Devils to help get it into Newark, because his investment group's goal is actually to improve/gentrify Newark.. Now that he got that, he and his group are looking to move to another project.. He tried to sell, but couldn't and wants his money now rather than waiting to find a buyer and having to help pay the debt while waiting.. Basically, he can go invest in Newark and make it better, while Jeff gets more control over his passion, the NJ Devils.. Win/win imo

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This plays into exactly what I've been thinking is going on:

Chambers was never in it for the long haul.. He invested in the Devils to help get it into Newark, because his investment group's goal is actually to improve/gentrify Newark.. Now that he got that, he and his group are looking to move to another project.. He tried to sell, but couldn't and wants his money now rather than waiting to find a buyer and having to help pay the debt while waiting.. Basically, he can go invest in Newark and make it better, while Jeff gets more control over his passion, the NJ Devils.. Win/win imo

Good point. I'm not worried. Is there a situation? Obviously. But it's one that will eventually get sorted out. It's something that's not as dire as some were making it out to be. Devils have to do real well the next couple seasons though to make things easier.

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