Is Delaware North in bigger trouble than we thought?

[Fenway]

Jeremy Jacobs historically never sells an asset but last week he sold a casino in Illinois for $60 million LESS than he paid for it and the buyer was Twin Rivers from RI.

Delaware North to sell Illinois casino for $120 million

A month ago DN had massive layoffs in the Buffalo area

https://www.bizjournals.com/buffalo/news/2020/09/16/why-delaware-north-made-deep-cuts.html

Among the issues:

• Sports stadiums: Delaware North provides food, beverage and retail services at more than 50 sports stadiums, including Bills Stadium and KeyBank Center, all of which have been shut down since mid-March. Sports venues account for more than $1 billion annually in revenues for the company.
• Airports: Restaurant and retail sales in the 25 airports serviced by Delaware North are down by 80% because of the lack of air travelers.
• Gaming: The 10 casinos operated by Delaware North are running with limited capacity and restrictions.
• Tourist destinations: Visits are also down dramatically at key tourism destinations where Delaware North has operations, such as the Kennedy Space Center Complex near Cape Canaveral and Niagara Falls State Park.

Here in Boston, the touted Hub on Causeway was built for massive foot traffic from the Garden and North Station - The Garden has been closed since March and the commuter rail is down 90%

On the surface, this doesn't look good.

Click to read more...

 

[Troublesome 85]

People have been losing jobs and businesses since this all began. People however haven’t been paying attention and have been focused on other stuff

I also despise the new North Station.

 

[Blowfish]

Jeremy Jacobs historically never sells an asset but last week he sold a casino in Illinois for $60 million LESS than he paid for it and the buyer was Twin Rivers from RI.

Delaware North to sell Illinois casino for $120 million

A month ago DN had massive layoffs in the Buffalo area

https://www.bizjournals.com/buffalo/news/2020/09/16/why-delaware-north-made-deep-cuts.html

Among the issues:

• Sports stadiums: Delaware North provides food, beverage and retail services at more than 50 sports stadiums, including Bills Stadium and KeyBank Center, all of which have been shut down since mid-March. Sports venues account for more than $1 billion annually in revenues for the company.
• Airports: Restaurant and retail sales in the 25 airports serviced by Delaware North are down by 80% because of the lack of air travelers.
• Gaming: The 10 casinos operated by Delaware North are running with limited capacity and restrictions.
• Tourist destinations: Visits are also down dramatically at key tourism destinations where Delaware North has operations, such as the Kennedy Space Center Complex near Cape Canaveral and Niagara Falls State Park.

Here in Boston, the touted Hub on Causeway was built for massive foot traffic from the Garden and North Station - The Garden has been closed since March and the commuter rail is down 90%

On the surface, this doesn't look good.

Yikers...he isn't alone however as a bruin fan yes this has me a little concerned.

 

[finchster]

I guess the Bruins won't be a cap team,

 

[Spoon fed]

Sell the team to Kraft..

 

[Troublesome 85]

Sell the team to Kraft..

Yes and yes

and give BB a contract to advise

 

[Number8]

Jeremy Jacobs historically never sells an asset but last week he sold a casino in Illinois for $60 million LESS than he paid for it and the buyer was Twin Rivers from RI.

Delaware North to sell Illinois casino for $120 million

A month ago DN had massive layoffs in the Buffalo area

https://www.bizjournals.com/buffalo/news/2020/09/16/why-delaware-north-made-deep-cuts.html

Among the issues:

• Sports stadiums: Delaware North provides food, beverage and retail services at more than 50 sports stadiums, including Bills Stadium and KeyBank Center, all of which have been shut down since mid-March. Sports venues account for more than $1 billion annually in revenues for the company.
• Airports: Restaurant and retail sales in the 25 airports serviced by Delaware North are down by 80% because of the lack of air travelers.
• Gaming: The 10 casinos operated by Delaware North are running with limited capacity and restrictions.
• Tourist destinations: Visits are also down dramatically at key tourism destinations where Delaware North has operations, such as the Kennedy Space Center Complex near Cape Canaveral and Niagara Falls State Park.

Here in Boston, the touted Hub on Causeway was built for massive foot traffic from the Garden and North Station - The Garden has been closed since March and the commuter rail is down 90%

On the surface, this doesn't look good.

Don't want to sound callous, but if he's short on cash perhaps there is a professional hockey team he could divest of? Bring him some good $$$$.

 

[LSCII]

Still don't feel a single shred of empathy. He's made plenty of $$$ off the sweat of us fans and workers. Sell the team to a local owner JJ...

 

[KrejciMVP]

Would love to see the Jacobs sell. I think more players would want to play in Boston.

 

[Troublesome 85]

Like I said in another post. Don’t think many people are in the market for a sports team now.

 

[PB37]

Sell the team to Kraft..

And you thought the 80s/90s Bruins were cheap... the Kraft regime has been notoriously stingy with signings of players that deserve money. I don't know how much of that is Kraft or Bill, but it may not be a good choice.

 

[DangleCity]

And you thought the 80s/90s Bruins were cheap... the Kraft regime has been notoriously stingy with signings of players that deserve money. I don't know how much of that is Kraft or Bill, but it may not be a good choice.

I think the idea would Kraft would be the success and building a dynasty

 

[Fenway]

Don't want to sound callous, but if he's short on cash perhaps there is a professional hockey team he could divest of? Bring him some good $$$$.

The obvious buyer would be the Celtics

A long shot could be Jacobs and the Tampa owner swapping franchises with Jacobs getting a lot of cash.

Jeffrey N. Vinik (born March 22, 1959) is the current owner of the Tampa Bay Lightning (NHL) and a minority owner of the Boston Red Sox (MLB)

Vinik knows real estate and obviously runs a solid hockey operation.

Vinik still maintains Boston roots He is also tight with Michael Gordon who is the very silent but powerful leader of Fenway Sports Group.

What I am 100% certain of - Jacobs will do whatever he can to save the Buffalo part of the business.

 

[Therick67]

The Patriots being cheap is a myth...

 

[the negotiator]

Interesting

The Bs have always been a minor part of the DN revenue stream ...the Hub on Causeway on the other hand was a major investment that is currently bleeding money

I have trouble feeling any sympathy or empathy for the Jacobs given how they treat their fan base. Remember they hold $60-70million in season ticket holder deposits- there is no idea if and when the Garden will open and worst of all- absolutely no communication to fans.

When you treat people like replaceable commodities don't be surprised when your own troubles are greeted with a shrug or derision

 

[Fenway]

I have heard from several STH's that Jacobs hit their cards overnight

 

[LouJersey]

Didn't he just sell his NYC condo as well?

 

[Therick67]

Didn't he just sell his NYC condo as well?

I believe he just listed it...

 

[BMC]

I have a lot of sympathy for the DN rank & file employees who have been let go or will be let go, this is an absolute nightmare for them and their families.

I have very little for Jeremy Jacobs though. I know that isn't right however it is the way I feel. For as long as I have known of him he has said & done very little (at least publicly) that might encourage me & others to take his part now that his business is in serious trouble from something that he has absolutely no control over. No matter what happens to DN his family will still be billionaires, they will not suffer hardship & deprivation the way former DN employees have and will in the future.

 

[rfournier103]

While I wish ill on no man, this is certainly evidence that not all sins go unpunished in this life.

If DN is in that serious trouble, J.J. really may have to make a move. Of the many potential buyers, the Celtics would be the most intriguing. Their ownership is committed to winning, but just constrained by the NBA cap and the fact that all free agents only want to play in like three places. And it would give the Celtics their own home again.

 

[redline76]

That is correct Bruins wacked STH cards last night/this morning.
The whole garden area is getting killed right now economically. No commuters, no tourists, no sports. All that construction and nobody to use it.

 

[Dennis Bonvie]

Looks like the chickens are coming home to roost.

 

[rfournier103]

Um... does this mean no new ice plant at the Garden?

 

[Fenway]

Look at what the Hub on Causeway was in March

· Star Market | Boston largest urban grocery store with over 60,000 sq. ft.
· ArcLight Boston | Northeast’s first 15-screen ArcLight Cinema.
· Big Night Live| An intimate concert venue for 1,500 people.
· Guy Fieri’s Tequila Cocina | A 6,000 square foot Latin-American inspired restaurant.
· Banners Kitchen & Tap | An immersive two-story restaurant and bar featuring upscale tavern cuisine.
· Hub Hall |A food hall showcasing 18 local eateries and food vendors.
· ProShop powered by ’47 | The official team store of the Boston Bruins and Boston Celtics.
· citizenM hotel | A European inspired hotel with over 270 rooms, rooftop bar and lounge area.
· Hub50House | A residential tower including 440 luxury units in a 38-story tower.
· TD Garden expansion | A legendary transformation of the 24-year-old arena, with an additional 64,000 square feet of expansion spaces on floors 3-9.
· TD Garden & North Station Entrance | Over 10,000 square feet of outdoor space serves as the new entrance.
· North Station Garage Expansion | Over 500 new below-grade parking spaces that connect to the North Station garage.
· North Station pedestrian connector tunnel | A covered, underground connection from the commuter rail to the subway at North Station.
· Creative office space | Over 145,000 square feet, home to Rapid7’s world headquarters.

Phase III consists of a 31-story office tower with approximately 630,000 square feet. It is expected to be completed in 2021. Verizon is the anchor tenant with 17 floors of office space.

The concept has been crippled - TD Garden is closed, commuter rail is down 90% in ridership, the offices in the area are empty as everyone is working at home.

I worry about all the other businesses around North Station.

 

[redline76]

I have friends who have been told don't expect to be back downtown even part time for work until at least next summer. Multiply that and I don't see how the small bars and restaurants in the West End survive. Office real estate is damn impossible to lease out right now. I'd imagine all those projects have bills which will be due soon (if not already). Just looking at hotel prices in downtown rooms are easy to find and very cheap.