Not this again...again. The Devils and Hucksterbeek's Financial Status

[Devil X]

I don't like the sound of that.

I mean he was just named CEO in July so i have no clue why he would step down from that job to take this one.

 

[indfin]

So BG or other financial gurus, the latest article I posted from the NYTimes above reports that Harris will be 'assuming' the $170m in debt. I can't fathom the debt merely being assumed instead of being paid down because if that is the case, Vanderbeek is walking away with a colossal amount of money. I am hoping 'assuming' means 'assuming and being paid off immediately' - anyone more familiar with these terms of art and if they are casually misused by the media?

He may assume the debt or pay it off. Either way, the removal of Vanderbeek/DAE/Devils from the debt means that that $170mm is part of the $320+mm total purchase price.

 

[Wingman77]

Yes, but he (ownership) also put somewhere between $100 million and $200 million into the project (depending on whose #s you believe).

Right, there is too much gray area regarding other finance payments and sales to the public as to how much of a profit JVB really would be making

 

[downtown56]

Dagoon44: My sources tell me NJ devil president Lou lamoriello to be removed as CEO. And president of Devils. Told he can remain as gm. Only

 

[Devils Dominion]

Dagoon44: My sources tell me NJ devil president Lou lamoriello to be removed as CEO. And president of Devils. Told he can remain as gm. Only

I would not mind that, hope Lou doesn't take it as a slight.

 

[NJDevs26]

We're going with Dagoon's word on this one over the Times (vis-a-vis Lou)? Obviously Dagoon has player sources, but what makes anyone think he has legit upper management sources?

 

[BenedictGomez]

So BG or other financial gurus, the latest article I posted from the NYTimes above reports that Harris will be 'assuming' the $170m in debt....... I am hoping 'assuming' means 'assuming and being paid off immediately' - anyone more familiar with these terms of art and if they are casually misused by the media?

This would be bad news.

The New York Times is contradicting the other reports that claim the debt is being taken out in the transaction. When you "assume" debt, it means that you're taking on responsibility for the existing obligation.

However, as I've mentioned before, when you get reporters that specialize in sports and dont understand the financial terms they're tossing about, they do sometime misuse terms like you're noting (i.e. claiming "8th most profitable arena in the world" when all you really know is the top-line revenue reported and thus cant make that claim).

I dont have access to NYT, is this article from their Finance Department or their Sports Department? I was surprised that this thing was emerging completely debt free, soooooooooo, this would explain my surprise if NYT is correct. Lets hope they're wrong.

Yea, because that worked out real well with the first time.

What first time?

 

[Wingman77]

Dagoon44: My sources tell me NJ devil president Lou lamoriello to be removed as CEO. And president of Devils. Told he can remain as gm. Only

"sources" what a clown

who told him the left over Doritos chip he found under a pocket of fat on his stomach?

whether this turns true or not, which he's been 0-century since Kovalchuk, doesn't matter, Lou would still be head of the hockey show

 

[NJDevs26]

This would be bad news.

The New York Times is contradicting the other reports that claim the debt is being taken out in the transaction. When you "assume" debt, it means that you're taking on responsibility for the existing obligation.

However, as I've mentioned before, when you get reporters that specialize in sports and dont understand the financial terms they're tossing about, they do sometime misuse terms like you're noting (i.e. claiming "8th most profitable arena in the world" when all you really know is the top-line revenue reported and thus cant make that claim).

I dont have access to NYT, is this article from their Finance Department or their Sports Department? I was surprised that this thing was emerging completely debt free, soooooooooo, this would explain my surprise if NYT is correct. Lets hope they're wrong.



What first time?

I'd be surprised if they paid $320+ million for the team/arena AND will have to pay another $170-200 million in debt over time, I figured the debt cost was part of the package.

 

[dougiebrown]

Kosman: "Devils Deal With Garroway Continues To Hit Snag."










Kidding.

 

[indfin]

I'd be surprised if they paid $320+ million for the team/arena AND will have to pay another $170-200 million in debt over time, I figured the debt cost was part of the package.

Correct ... debt (whether assumed or retired as part of a purchase) is included as part of the purchase price. From Vanderbeek's perspective (since he is no longer on the hook for the debt), it's exactly the same as if someone gave him $170mm in cash and he paid off his debt with it.

 

[Benedict Parisechuk]

This would be bad news.

The New York Times is contradicting the other reports that claim the debt is being taken out in the transaction. When you "assume" debt, it means that you're taking on responsibility for the existing obligation.

However, as I've mentioned before, when you get reporters that specialize in sports and dont understand the financial terms they're tossing about, they do sometime misuse terms like you're noting (i.e. claiming "8th most profitable arena in the world" when all you really know is the top-line revenue reported and thus cant make that claim).

I dont have access to NYT, is this article from their Finance Department or their Sports Department? I was surprised that this thing was emerging completely debt free, soooooooooo, this would explain my surprise if NYT is correct. Lets hope they're wrong.



What first time?

Summer of 2011

 

[BenedictGomez]

I'd be surprised if they paid $320+ million for the team/arena AND will have to pay another $170-200 million in debt over time, I figured the debt cost was part of the package.

Yes, but as a fan, I'd rather have that bloated debt "done and done" with and have the Devils start with a clean slate.

 

[ZadorovNJD*]

"sources" what a clown

who told him the left over Doritos chip he found under a pocket of fat on his stomach?

whether this turns true or not, which he's been 0-century since Kovalchuk, doesn't matter, Lou would still be head of the hockey show

Dagoon is legit.

 

[Emperoreddy]

Part of the 'real draft experience' (having two days to go instead of one, which ensured more people could go and for cheaper) was wiped out by Fehr and Bettman's squabbling.

Ya that a bit far with the comments. Maybe something was missing but I had a blast at the draft.

 

[Benedict Parisechuk]

Dagoon is legit.

About 50% of the time he is. He had Clarkson going to Edmonton as a done deal, He piggybacked the Brunner stuff last month, and said we were going to make a splash at the draft by trading for Ryan or signing Vinny L.

 

[ScottyK]

Dagoon's a ******* but he's legit the time he's said something things happened quickly after.

 

[Emperoreddy]

About 50% of the time he is. He had Clarkson going to Edmonton as a done deal, He piggybacked the Brunner stuff last month, and said we were going to make a splash at the draft by trading for Ryan or signing Vinny L.

To be fair Clarkson almost did go to Edmonton, they offered the most, but he could of piggied back on that one too.

 

[NJDevs26]

Dagoon obviously knows players which is where he'd get some inside info on that level, but how the **** would he know inside details of a financial purchase or upper management?

 

[jkrdevil]

Dagoon is legit.

No he is not. He is a guy who owns a bar that has held some player signings. Any tips he has gotten is because of said signings. He isn't going to have scoops on ownership stuff.

And by all indications (both media reports and track records), Lou is going to firmly remain in charge of the Devils. The guy the new ownership may bring in for off ice business is a basketball person (current president of the Sixers. My guys business wise there is going to be some shared resources between the two. But Lou is very likely to remain in charge of the Devils hockey ops and will retain President title.

 

[Wingman77]

Dagoon is legit.

I have a bridge to sell you...

 

[B A T M A N]

Dagoon was only right about the Kovalchuk trade. And that was not earth breaking. It was between Boston and Jersey. 50/50 chance. Oh my, he is so legit...

It's like Nick Barlotta picking Brunner as the likely guy we sign, then it happens (hypothetically speaking). Does that make him legit? **** no, it's a guess, and nothing more. You don't have "sources" unless you are employed in the business.

 

[Csonked Out]

Yes, but as a fan, I'd rather have that bloated debt "done and done" with and have the Devils start with a clean slate.

As a fan why do you care at all, hell as long as he can fund a stable and competitive franchise I could really give a crap. That debt was just refinanced in December and I am sure is on some pretty good terms right now. Why would he pull $170 million out of somewhere else to pay off the debt, if the debt itself is on an appealing rate and term? There is no reason for him to do it.

Bottom line is this man apparently has the money to fund everything and a plan for how to turn things around financially. What more can we ask for?

 

[Wingman77]

His sources are guesses based off of what other people who also claim to have sources, guess

We/Lou have been fortunate to survive 3 ownership changes and Lou remain in his same roles throughout, should the president/CEO title change, is it even groundbreaking stuff? Not in the least, it's new ownership, things change - doesn't take a fat slob to figure it out

As long as Lou has the GM title, there is nothing that needs to be worried about

 

[Csonked Out]

Dagoon was only right about the Kovalchuk trade. And that was not earth breaking. It was between Boston and Jersey. 50/50 chance. Oh my, he is so legit...

It's like Nick Barlotta picking Brunner as the likely guy we sign, then it happens (hypothetically speaking). Does that make him legit? **** no, it's a guess, and nothing more. You don't have "sources" unless you are employed in the business.

There isn't one person outside the Devils that has "insider sources" other than the obvious ones. These people are just throwing stuff against the wall hoping something sticks.