HA you should see the increase over the past few years. Did you see the chart I posted on the last page? They've already done that ten times over.
Are the Devils in bankruptcy trouble? UPD: Chambers to pay $25m to exit?
- Thread starter GKJ
- Start date
HA you should see the increase over the past few years. Did you see the chart I posted on the last page? They've already done that ten times over.
The team was valued at $218 million. He wants to sell it for $200 million.
The team obviously has money issues but it's not a big deal as this tabloid is spewing.
So to summarize with the facts from the linked article:
*Chambers and Vanderbeek each own 47%, and Chambers has wanted to sell for 1+ yrs now.
What are they at odds over, player contracts....Kovalchuk is due $6 million this season, then that number zooms to $11+ million for the next five years, and $10 million for year 7. Ouch. I was speculating a while back that the mid-loading had to do with Vanderbeek being the one pushing for the contract and Chambers wanting to keep actual cash costs down while he was still attached to the team.
*The asking price was initially $240 million, now cut to $200 million
*NJD ranks 25th in NHL attendance (announced, I presume)
*Forbes is cited as reporting that NJD and the arena operation company owe 15% more than the team is worth; and I guess that would be the Forbes estimated franchise value of $218 million?
That means they owe: ~$251 million to lenders. However the article also states that the team owes CIT $100 million; the arena management company owes $180 million
*Anonymous source says team is already in bankruptcy protection
*NBA lockout will hurt the arena's profitability, losing 25% of the 161 dates
*Chambers and Vanderbeek each own 47%, and Chambers has wanted to sell for 1+ yrs now.
What are they at odds over, player contracts....Kovalchuk is due $6 million this season, then that number zooms to $11+ million for the next five years, and $10 million for year 7. Ouch. I was speculating a while back that the mid-loading had to do with Vanderbeek being the one pushing for the contract and Chambers wanting to keep actual cash costs down while he was still attached to the team.
*The asking price was initially $240 million, now cut to $200 million
*NJD ranks 25th in NHL attendance (announced, I presume)
*Forbes is cited as reporting that NJD and the arena operation company owe 15% more than the team is worth; and I guess that would be the Forbes estimated franchise value of $218 million?
That means they owe: ~$251 million to lenders. However the article also states that the team owes CIT $100 million; the arena management company owes $180 million
*Anonymous source says team is already in bankruptcy protection
*NBA lockout will hurt the arena's profitability, losing 25% of the 161 dates
It's also important to note for those that don't live around here that the NYPost is garbage.
There are already a few journalists and individuals pointing out bad mistakes and lies in this article.
He can't sell the team, just his 47% non-controlling stake. That's what he's been trying to sell, along with Moag's share (which I guess is the remaining 6% that neither Chambers or Vanderbeek own).
However, if the team is defaulting on its debt, then CIT can force a sale, assuming things get that bad. See: Dallas Stars and Hicks.
The arena management company guarantees the team's debt, and has it's own share of debt (so $100 MM and $180 MM respectively). How is the ownership structure of the arena mgt company set up?
Well, correct the record then. It's very easy to just say it's all wrong without anything to back it up.
Devils beat writer Tom Gulitti says he's been told that there's a deal in the works for Vanderbeek to buy the 47% that's for sale. That would solve some issues. He expects to have a story later in the day but he said he won't post it til later so he can make sure everything is accurate.
MaskedSonja
Registered User
SO, they've already declared and gotten Bankruptcy? I'd be interested in seeing more confirmation than an "anon" source, but if true it will be interesting to see what path it goes.
Querstion about Kovy-doesn't he have an NMC/NTC?
This is the exact same writer that wrote something like this in the Post months ago coming up with ridiculous claims about the financial state of the team. After that, Vanderbeek and Chambers came out with a joint statement saying that it was all untrue.
FROM GULITTI:
I’m not going to say much about the Devils finances/Post story right now. I expect to have something accurate on it later today.
It might take some time, but I will have something today.
I will tell you that I’ve been told that Chambers and Vanderbeek are close to a deal in which Chambers will sell Vanderbeek his share of the team. That’s something they’ve been working on for a while
They did have their differences previously, but as I reported a few months back they’re working together now for a peaceful resolution of the sale.
The writer of the NY Post article is a business writer.
He is the same reporter who did a story three months or so back that resulted in Vanderbeek and Chambers putting out a joint statement saying it was not true.
They haven't declared bankruptcy. All major corporations have bankruptcy protection. This article is coming from this business writer who was told the Devils missed their Sep 1 loan payment and is now excited to write a story. The payment is less than two weeks late. If the Devils make the payment today or in the next few weeks, this article becomes useless. They haven't defaulted on the loan and it's not even in collections. If they are three months behind, then we have a problem.
It's an anonymous source. Do you think the New York Times or Washington Post could get away in today's day and age with reporting on things like this from an "anonymous source?" This is the New York Post we're talking about... the paper that has had "Holy Shiite" "Osama Bin ****in" and many other gems as headlines. When this pops up in the Times or the Wall Street Journal, let's talk about it.
Way to chose a team that won't be moved due to financial difficulties, Kovalchuk
Who says they're moving?
Actually, they are still quite a bit cheaper then Leaf tickets.
It's definitely in line with what other Canadian franchises charge though, which is probably too much to expect New Jersey hockey fans to pay.This is definitely a shock as the Devils have been always considered a stable team. It would be quite a shame if they were forced into bankruptcy.
Really? Are they going to admit they're losing money and that the franchise price needs to come down?
You're saying you know it's two weeks late, but then you add that if it's 3+ months behind, the team is indeed in trouble.
Which is it, and do you have any other media links that refute this version of events?
If it hadn't been for anonymous sources, we never would have known the Yotes or Stars were in trouble, or that the Thrashers were on the block--- to TNSE of all groups. Or that they indeed were sold to TNSE well ahead of the league's desire to announce the sale.
You're saying you know it's two weeks late, but then you add that if it's 3+ months behind, the team is indeed in trouble.
Which is it, and do you have any other media links that refute this version of events?
If it hadn't been for anonymous sources, we never would have known the Yotes or Stars were in trouble, or that the Thrashers were on the block--- to TNSE of all groups. Or that they indeed were sold to TNSE well ahead of the league's desire to announce the sale.
I'm just saying that the payment is less than two weeks late. My three month statement was to make a comparison to say that it's not a big deal that it's two weeks late. If someone is coming out and saying (which they're not) that They haven't paid March and April's payments... THEN it's serious...
As far as the paper... I don't trust the Post and many don't around here. It's a garbage paper that gains readers off of shock value from their headlines.
Ernie
Registered User
- Aug 3, 2004
- 12,830
- 2,276
It's important to note that this isn't anything similar to the Phoenix bankruptcy. The Devils are in no danger of moving.
Ultimately, it may be the best thing for the fans. If the franchise reduces debt and new ownership is brought in, it could be a more stable situation in the long run.
Ultimately, it may be the best thing for the fans. If the franchise reduces debt and new ownership is brought in, it could be a more stable situation in the long run.
Nevertheless there have been times that hockey stories have been broken by a certain hockey writer from the Post.
I guess it's far easier to disparage a paper or writer than to find something that can truly refute the claim being made.
I'll wait until the local beat writer updates his story today, to see if there's more to this.
However, I would be concerned that Chambers has been trying for over a year now to sell his share and that the price is coming down. Factor in the NBA lockout, and it's really not good news at all.
Do you know what the ownership structure is of the arena management company?
To bring us up to speed, what are the lease terms for the arena between the city and NJD?
It's always fascinating to look at very real scenarios where it is more profitable to charge higher prices and sell fewer seats than the alternative, but I'd still think that the profitability sweet spot lies somewhere in the higher ticket base/lower seat price ballpark. They really struggle to pack the building.
And while we wait for lease details, as I was taking a quick look at search results, I noticed that the Nets are a temporary resident at Prudential Center. If the arena manager is counting on the Nets to achieve profitability, what will they do when that team moves to its own home in Brooklyn?
The Nets were supposed to be tenants this year and last year. This year may be cancelled so I don't think anyone can count the Nets profits into any long term numbers.
Mayor Booker has said that he's been in contact with the NBA for a few years now about bringing an NBA team to Newark that is NOT the Nets.
Mayor Booker has said that he's been in contact with the NBA for a few years now about bringing an NBA team to Newark that is NOT the Nets.
Killion
Registered User
- Feb 19, 2010
- 36,763
- 3,215
While I agree with you & countless others that the NYPost is far from reliable, a quick read, Im somewhat confused here. Initially, as per reports from last February, it was my understanding Vanderbeek wanted to sell his 47% stake; now he's looking at buying Chambers out?.
