Sep 12, 2011, 11:16 AM EST
Last season was a tough one on the ice for the New Jersey Devils, but a report in The New York Post indicates that things are much rockier on the accounting spreadsheets. Josh Kosman cited an anonymous source who reports that the team missed a $100 million Sept. 1 loan payment, which is a troubling issue because it could push the franchise toward bankruptcy.
The bankruptcy problems could also reportedly extend to the Prudential Center, the Devils’ four-year-old arena located in Newark. Devils Arena Entertainment is on the hook for $180 million in payments, according to Kosman and other reports.
The source told Kosman that the Devils are “blowing up,” which we will assume isn’t slang for “on a roll” in this instance. The report indicates that the Devils’ issues are multifaceted.
The first problem is that the team’s ownership is in a state of flux, even if majority owner Jeff Vanderbeek stays in the picture. Co-owner Ray Chambers has been trying to sell his share of the team for about a year but hasn’t had any luck so far. Kosman also writes that Vanderbeek doesn’t have a good relationship with lenders, which could exacerbate the issues.
“You have a bank group that wants nothing to do with Vanderbeek,” said a source, who added they have been upset with how late they have been with financial information.
Some lenders are already considering selling their stakes to vulture investors, the source said.
“This is going to be a very difficult situation.”
The third problem is truly outside the Devils’ hands: the NBA’s lockout could ruin the New Jersey Nets’ final season at the Prudential Center. A full lockout would knock out 25 percent of the building’s 161 scheduled events, which is even more problematic considering the fact that the Nets are reportedly the reason why the building earned its first profitable year. Either way, the Nets aren’t going to be a part of a long-term solution for the Devils’ alleged financial problems.
It all seems like a very messy situation for the Devils, who haven’t responded to the report at this time. Like many other ownership/bankruptcy scenarios, this looks to be a fluid situation, so we will keep an eye out for responses from the team and any other updates.
- Video: Isles’ Martin to face hearing for ‘stupid’ knee-on-knee hit 32
- NHL on NBCSN: Reloaded Red Wings, Rangers set to battle tonight 49
- Bernier bests Panthers as Luongo goes from injured (and in street clothes) to back in net 4
- Phaneuf, Cuthbert and Lupul threaten lawsuit after tweet goes to air 58
- Doan: Coyotes rebuild was ‘not my idea, not my ideal situation’ 29
- Video: Kessel says the way Toronto media treats Phaneuf is ‘embarrassing’ 47
- Playoff watch — what the bubble teams need to do 9
- Rutherford: ‘Our guys felt very strongly about reacquiring’ Lovejoy 49
- Winners and losers of the 2015 trade deadline 78
- Giordano to have surgery, is ‘done for the season’ 22
- Wild beat Avs, dying seconds fight set stage for rematch (171)
- Petrovic: Chicago will ‘probably seek revenge’ for Kane injury tonight (82)
- Winners and losers of the 2015 trade deadline (78)
- Trade: Blackhawks acquire Vermette from Arizona for Dahlbeck, first rounder (74)
- Wings get Zidlicky from Devils (74)