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

[Wingman77]

Tom Gulitti ‏@TGfireandice 1m
Told sale price of the Devils, which includes Pru. Center operating rights, to Josh Harris and co. is "well in excess of $300 million."

JVB and co bought the team for $125m

 

[ThePSEGPowerPoster]

JVB and co bought the team for $125m

Not bad at all.

 

[BenedictGomez]

Tom Gulitti ‏@TGfireandice 1m
Told sale price of the Devils, which includes Pru. Center operating rights, to Josh Harris and co. is "well in excess of $300 million."

Well? That's absolutely staggering.

Only way I can wrap my head around this possible making sense is if this sucker is just being completely restructured from soup to nuts. Which could also help explain why it's taking a while.

 

[Wingman77]

Not bad at all.

I'd be interested to eventually see what the team was sold for seperately from what the arena was sold for

 

[Wingman77]

Well? That's absolutely staggering.

Only way I can wrap my head around this possible making sense is if this sucker is just being completely restructured from soup to nuts. Which could also help explain why it's taking a while.

It makes plenty of sense

The piece of value here is one of the most valuable and profitable arenas in the world, it ain't getting sold for a bag of pucks

 

[CerebralGenesis]

This is pretty quick too considering the amount of money that is traded in this. Assuming it is over by tomorrow.

 

[NJDevs26]

There's a difference between LL being in charge of the team and being in charge of the organization.

I don't think people realize that...

Except that you really think Lou's still gonna be here running the hockey team if he's not in charge of the organization too? It sorta goes hand in hand imo.

 

[Wingman77]

This is pretty quick too considering the amount of money that is traded in this. Assuming it is over by tomorrow.

That's what leads me to believe this was in the works at the beginning of the summer or even prior

Reason we're hearing a much of information so quickly is likely because of the fact that the organization has had everybody involved locked in a room for at least a few months to ensure nobody would hear of anything

 

[NJDevs26]

That's what leads me to believe this was in the works at the beginning of the summer or even prior

Reason we're hearing a much of information so quickly is likely because of the fact that the organization has had everybody involved locked in a room for at least a few months to ensure nobody would hear of anything

If this was such a fait accompli for months, why did Barroway loan the team $30 million and just two weeks ago it seemed like he had the inside track?

Maybe Harris just bid out of the sky because of the Barroway rumors...but yeah I didn't think this team (with the arena especially) was being given away for unused Kovalchuk and Parise jerseys the way the doomsayers did.

 

[Emperoreddy]

Well? That's absolutely staggering.

Only way I can wrap my head around this possible making sense is if this sucker is just being completely restructured from soup to nuts. Which could also help explain why it's taking a while.

A lot of that has to be the arena. The 8th most popular venue in the world thing and all.

 

[Devils731]

http://blogs.northjersey.com/blogs/...0_million_on_target_to_be_completed_thursday/

An individual familiar with the process said the sale price is “well in excess of $300 million.†That will cover the approximately $200 million in debts the Devils and Devils’ Arena Entertainment have accumulated and still leave Vanderbeek with a significant surplus.

 

[guyincognito]

Well? That's absolutely staggering.

Only way I can wrap my head around this possible making sense is if this sucker is just being completely restructured from soup to nuts. Which could also help explain why it's taking a while.

Why would you be surprised?

The debt value of the team is well over $200M and they put $100m into the arena, aka DAE.

That's fair market value. If he's making the team whole on its debt, there's no discounts on the team. And the value of operating the arena, while it's not a defined value, it's definitely valuable and we know what the team's "buy-in" on that was.

 

[Brick City]

This was my speculation in the BoH thread earlier:

So, all of that being said, my educated guess is the following:

$240m = $160m to CIT, $30m to Barroway, $50m to Vanderbeek, NHL debt remains and is serviced and/or forgiven.

Anything beyond $240m will go to some combination of Vanderbeek and the NHL as there is no one else to pay off.

I was hoping the debt would be wiped out (as opposed to re-packaged again) and that Vanderbeek would be made whole. Given the $300m+ purchase price, I am guessing this team is going to be debt free going forward which is outstanding.

 

[B A T M A N]

Excited that this team will be owned and funded by a billionaire. Perhaps he will want those big named superstars when they hit FA. (As rarely as that is these days...)

 

[Emperoreddy]

http://blogs.northjersey.com/blogs/...0_million_on_target_to_be_completed_thursday/

So financial problems solved. We can finally put this crap to bed.

 

[ThePSEGPowerPoster]

So what do we do with all the "Devils are poor, bankrupt, and can't pay their players" jokes? Do they go where the "Devils do not have any fans" jokes went?

 

[BenedictGomez]

I'd be interested to eventually see what the team was sold for seperately from what the arena was sold for.........

The piece of value here is one of the most valuable and profitable arenas in the world, it ain't getting sold for a bag of pucks

I think you might have misunderstood me. At that valuation, it surprisingly doesn't seem like the institutions are going to take it up the *** (depending on what Gulitti's definition of "well" is). That's definitely a bit of a surprise. The other interesting thing here is that since the team and property are tied together, my guess is there might be some latitude for them to phantomly assign valuation to either entity as they wish. But what's the team selling for? We'll have to wait and see, but I don't think very much relatively speaking (most of the value is the building). And it's possible we may never "really know", regardless of what they publicly state the value of the team is versus the value of The Rock.

 

[Emperoreddy]

So what do we do with all the "Devils are poor, bankrupt, and can't pay their players" jokes? Do they go where the "Devils do not have any fans" jokes went?

Into the Newark sewer system with the "sea of blue brah" ?

Is seriously great news for this team to be debt free and finally secure.

 

[mugs]

That's what leads me to believe this was in the works at the beginning of the summer or even prior

Reason we're hearing a much of information so quickly is likely because of the fact that the organization has had everybody involved locked in a room for at least a few months to ensure nobody would hear of anything

TG reported that the Barroway group had an exclusive negotiating window until the end of July, so the Harris group couldn't have been working on this since the beginning of the summer.

 

[ThePSEGPowerPoster]

Into the Newark sewer system with the "sea of blue brah" ?

Is seriously great news for this team to be debt free and finally secure.

Never was a fan of the arena/placement when it was planned and constructed but man am I ever excited to be wrong.

Safe to say the Rock saved the Devils? Rare that an arena is that successful to be able to support a team.

 

[Zajacs Bowl Cut]

Did anyone read the story about when Harris took over the 76ers? He apparently lowered the prices on 8,800 seats.

*fingers crossed*

am I the only one that isn't upset about the ticket prices? they are pretty reasonable compared to the rest of the league, honestly.

 

[BenedictGomez]

. Given the $300m+ purchase price, I am guessing this team is going to be debt free going forward which is outstanding.

YES!

Didn't see that one coming. If this is true, it's beyond what Devils' fans could have even dreamed of as a "Best Case Scenario".

And it should shut the naysayers up that constantly scream that the Devils will soon be playing in Moose Jaw Saskatchewan.*

*Except as a long-time fan of this team I don't think it ever will. The Devils could turn into the Maple Leafs and have 41 consecutive sellouts, and I feel like ESPN.com will still run an attendance photo of a September pre-season game taking place at 1pm Sunday of a Giants/Jets game when the Mets and Yankees are playing interleague ball.

 

[NJDevs26]

am I the only one that isn't upset about the ticket prices? they are pretty reasonable compared to the rest of the league, honestly.

Almost all of the season ticket prices are reasonable (at the moment), it's the single-game prices that are a tad overboard.

And they have to be reasonable compared to the rest of the league, the market won't allow the Devils to be priced the same way the Rangers/Leafs/Habs/etc are.

 

[ThePSEGPowerPoster]

am I the only one that isn't upset about the ticket prices? they are pretty reasonable compared to the rest of the league, honestly.

Yes but it wouldn't hurt to fill up the Rock even more .

 

[BenedictGomez]

am I the only one that isn't upset about the ticket prices? they are pretty reasonable compared to the rest of the league, honestly.

I'd rate that comment "partially true". If you just want to put your fanny into a seat for an NHL game, and you don't really care where you sit, it's 100% true. But if you care about where you sit and want a nice seat, the Devils prices are almost the most expensive of any American team. That's definitely something I've noticed in my quest to see a game in every arena.