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SHOALTS - bankers are the ones calling the tune

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likea

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an article appeared in the business sports journal about a year and a half ago stating New Jersey was having a hard time getting loans because of how much dept they were already in compared to their revenues coming in.

New Jersey is one of the teams that needs a cap
 

vanlady

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likea said:
an article appeared in the business sports journal about a year and a half ago stating New Jersey was having a hard time getting loans because of how much dept they were already in compared to their revenues coming in.

New Jersey is one of the teams that needs a cap
Click to expand...

Funny if NJ is in such tough financial trouble, how did they sign a deal for a new arena less than a week ago. Add to that Lou Lamarello is one of the best financial managers in the NHL, NJ is one of the have teams.
 
SuperUnknown

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vanlady said:
Funny if NJ is in such tough financial trouble, how did they sign a deal for a new arena less than a week ago. Add to that Lou Lamarello is one of the best financial managers in the NHL, NJ is one of the have teams.
Click to expand...

Yet NJ is one of the teams that were sold for a capital loss not too long ago...
 

nyr7andcounting

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likea said:
an article appeared in the business sports journal about a year and a half ago stating New Jersey was having a hard time getting loans because of how much dept they were already in compared to their revenues coming in.

New Jersey is one of the teams that needs a cap
Click to expand...

If they needed a cap and needed cost certainty would they be spending $60 million on payroll and financing a new arena? Doubt it.

And you know the Rangers aren't one of those teams, Dolan just bid $600 million for property on the west side where the Jets are trying to build a stadium.
 

likea

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vanlady said:
Funny if NJ is in such tough financial trouble, how did they sign a deal for a new arena less than a week ago. Add to that Lou Lamarello is one of the best financial managers in the NHL, NJ is one of the have teams.
Click to expand...


NJ is not one of the have teams, they are bleeding money....bleeding

that is why they need a new arena and why they sold like they did, they are now owned by a rich owner who is taking a loss

NHL franchises need to be viable by themselves, it should not take loads of extra cash from rich owners to make it happen

NJ is bleeding money
 

vanlady

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likea said:
NJ is not one of the have teams, they are bleeding money....bleeding

that is why they need a new arena and why they sold like they did, they are now owned by a rich owner who is taking a loss

NHL franchises need to be viable by themselves, it should not take loads of extra cash from rich owners to make it happen

NJ is bleeding money
Click to expand...

No bank in there right mind is going to fund a capital cost project for any business bleeding money. Until you can give a business reason why a bank would fund an arena when the business is not bringing in any income, after they have already extended a 60 million line of credit to that organization, you have no evidence that the Devils are bleeding money.
 
SuperUnknown

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vanlady said:
No bank in there right mind is going to fund a capital cost project for any business bleeding money. Until you can give a business reason why a bank would fund an arena when the business is not bringing in any income, after they have already extended a 60 million line of credit to that organization, you have no evidence that the Devils are bleeding money.
Click to expand...

Maybe it's guaranteed by the owner (and not the team). Who knows...

There are companies out there with negative capital (in other words, they have more debts than they have assets) and yet they keep getting financed. :dunno:
 

Biggest Canuck Fan

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dakota said:
http://www.theglobeandmail.com/sports/

Looks like upto 15 owners are being told by their banks to get cost certainty or risk having their loans called...

this does not bode well for the players.. it tells me they do NEED cost certainty... now if the owners could get this and figure out another way to give the players something we may be ok.
Click to expand...

This is a very positive sign that the NHL is not only telling the truth, but that the NHL financially is in deeper trouble than anyone could've guessed.

I am a financial advisor and let me tell you, If I called up someone to call their loan, it is only because I know they cannot meet their current income levels.

And if you think Banks do not know every single penny that is being counted, then you are really fooling yourselves.

No doubt the NHL planned to have this info leaked at this juncture in the negotiations, a smart tactic.

But the threat is real, and the players , especially Goodenow are just going to have to accept this.
 
rwilson99

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vanlady said:
No bank in there right mind is going to fund a capital cost project for any business bleeding money. Until you can give a business reason why a bank would fund an arena when the business is not bringing in any income, after they have already extended a 60 million line of credit to that organization, you have no evidence that the Devils are bleeding money.
Click to expand...

The capital cost project is a piece of what the bankers feel is a plan to have the team fufill the current debt obligation. Part of that plan is cost certainty.
 

mr gib

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likea said:
an article appeared in the business sports journal about a year and a half ago stating New Jersey was having a hard time getting loans because of how much dept they were already in compared to their revenues coming in.

New Jersey is one of the teams that needs a cap
Click to expand...
to go with their 100 mill investment in the new arena - ( just kidding )
 

likea

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vanlady said:
No bank in there right mind is going to fund a capital cost project for any business bleeding money. Until you can give a business reason why a bank would fund an arena when the business is not bringing in any income, after they have already extended a 60 million line of credit to that organization, you have no evidence that the Devils are bleeding money.
Click to expand...


ok, lets do this so you can understand it

the Caps, who had a payroll of 50 million to begin and end the 2002-2003 season lost 20-30 million with an attendence of 15, 787 per game

the Devils, averaged 14,858 per game in the same year they had a 56 million dollar payroll

you do the math
 

likea

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mr gib said:
to go with their 100 mill investment in the new arena - ( just kidding )
Click to expand...


they need a new arena to try and turn things around

its a calculated investment
 

Anksun

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I agree with Biggest Canuck Fan,

I'm also completing some degree in financial at university and what you can say about the banks is that they really have the best system of RISK analysism out there.

Every bank have his own risk department and they dont call/ask for some more stability in your business for fun, that's for sure.
 
Boomhower

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likea said:
ok, lets do this so you can understand it

the Caps, who had a payroll of 50 million to begin and end the 2002-2003 season lost 20-30 million with an attendence of 15, 787 per game

the Devils, averaged 14,858 per game in the same year they had a 56 million dollar payroll

you do the math
Click to expand...

If you think it's that simple than your kidding yourself. There are a lot of other factors that are just as, if not more important, than Attendance vs. Payroll.
 

Hockey_Nut99

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Why does Lou get so much credit for being so smart when his payroll is around or over 60 million?
 

vanlady

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Nov 3, 2004
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Smail said:
The buyer from McMullen at $175M sold it for significantly less than that after. As in, recent transaction, capital loss...
Click to expand...

Now I know you are full of hot air, the current owner was part of the original Yankee Nets deal in 2000 and only bought out Yankee net and the rest of the investors. The transfer as a matter of fact was approved Sept 15, lockout day, jeez wonder why?

Oh and if they are bleeding red that bad where are they getting the 100 million to finance the arena deal?
 

likea

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Jul 9, 2004
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Boomhower said:
If you think it's that simple than your kidding yourself. There are a lot of other factors that are just as, if not more important, than Attendance vs. Payroll.
Click to expand...


I know its not as simple as that, you have to look at luxery boxes, advertising, ect..ect..

but who do you think gets the big companies....the Rangers or the Devils

Madision square garden or that crap of an arena the devils play in

NHL is an attendence base sport....
 

likea

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vanlady said:
Now I know you are full of hot air, the current owner was part of the original Yankee Nets deal in 2000 and only bought out Yankee net and the rest of the investors. The transfer as a matter of fact was approved Sept 15, lockout day, jeez wonder why?

Oh and if they are bleeding red that bad where are they getting the 100 million to finance the arena deal?
Click to expand...


are they paying that 100 million right now??? are they paying it all in one year

they plan to pay it over time with the new arena money
 

vanlady

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likea said:
are they paying that 100 million right now??? are they paying it all in one year

they plan to pay it over time with the new arena money
Click to expand...

That 100 million is the Devils percentage of the constuction costs, so yes it will be due and payable now.
 

likea

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vanlady said:
That 100 million is the Devils percentage of the constuction costs, so yes it will be due and payable now.
Click to expand...


so you think the government pays its 200 million off right away too...lol

I have ocean front property in Iowa I want to sell ya
 
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