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Report: Devils at risk of defaulting on loan

Jun 17, 2013, 4:18 PM EST

Jeff Vanderbeek, New Jersey Devils Getty Images

Hey, remember like six months ago when it sounded like the New Jersey Devils’ financial troubles were over?

Well, according to the New York Post, they’re not.

The team’s cash-strapped owner, less than six months after restructuring its debt, has missed an interest payment and now risks defaulting on its new loan, a source with direct knowledge of the situation said.

The latest financial blow-up at Devils Arena Entertainment — a missed interest payment in April of nearly $3 million — has surprised those close to the once-proud NHL franchise.

If the report is accurate, it’s not clear if it’s just a short-term cash-flow issue or evidence of a larger problem for owner Jeff Vanderbeek.

The NHL, according to the Post, “said the story was inaccurate but declined to give specifics.”

  1. quizguy66 - Jun 17, 2013 at 4:31 PM

    NY Post reporting on the Devils is like Rush Limbaugh reporting on the President. The next nice thing they say will be the first.

    -QG

  2. jb8383 - Jun 17, 2013 at 4:40 PM

    Why would anyone trust the NY Post as a source?

  3. devilsarethebest - Jun 17, 2013 at 4:43 PM

    As usual, the post is full of s***. The Devils had an incredible selling season, and they got the cash earlier this year.

  4. pimares - Jun 17, 2013 at 4:50 PM

    If the report this morning that Chicago lost money this year, I wouldn’t be surprised by this….

  5. 950003cups - Jun 17, 2013 at 5:05 PM

    Hard to say. But the last time NY Post reported a story about the Devils finances, it turned to be true.

    A 48 game season, and no playoffs this year could’ve added to the troubles.

    However, the prudential center is holding some pretty big concert events this summer, the NHL draft, and a full season coming up in October that added to its season ticket holders.

  6. ray2013 - Jun 17, 2013 at 5:07 PM

    Is it time for the Devils to Quebec City rumors yet?

  7. Stiller43 - Jun 17, 2013 at 5:25 PM

    Wait. I thought the penguins were the only team ever to have any kind of financial troubles……?

    • 950003cups - Jun 17, 2013 at 5:47 PM

      Blackhawks had major financial issues for a while too.

  8. broadstreetbeatdown - Jun 17, 2013 at 5:31 PM

    Vanderbeek is an idiot who is going to drive this club into the ground. Chambers even offered to buy him out to to his fiscal bungling.

    • 950003cups - Jun 17, 2013 at 5:45 PM

      Ray Chambers did not offer him anything of the sort. Ray Chambers wanted out of the sports business for a while now. While rumors have circulated about Ray and Jeff not getting along. The rumors were that Jeff was too hardheaded to do business with. Basically, they said Jeff was a prick. But they also said Ray was a very nice himble man. So, obviously these rumors came out of Chambers’ friends’ side

  9. 950003cups - Jun 17, 2013 at 5:40 PM

    Let’s look at the facts in this story.

    A) Josh Kosman is a financial reporter and a hack, who can’t (likely never will) get a job for a real financial paper.

    B) it says the NHL denied the story

    C) claims the NHL loaned the Devils $25 million. That never happened.

    D) His “sources” were wrong on many specifics before concerning the Devils finances and are as credible as Eklund’s sources.

    E) Devils actually have new partners coming in very soon.

    F) being late on an interest loan is nothing new with this franchise.

    G) notice his wording of “The Once Proud Franchise” Devils are still a very proud franchise.

    This hack seems to have a lot of ill issues concerning the Devils.

    With that all being said. Something OBVIOUSLY did happen with the loan being late. But even if (possibly so) its true. The Devils are not about to default on anything.

  10. broadstreetbeatdown - Jun 17, 2013 at 6:07 PM

    Chambers paid his 23 mill to get as far away from that debt ridden cancer known as Vanderbeek. Buddy wanted sole control to refinance his debt and now he can’t even pay his note.

  11. bardown66 - Jun 17, 2013 at 7:12 PM

    How is a solid franchise who is usually competitive so financially unstable? It’s not like when the pens and hawks were god awful. The devils have been relevant since like 92-93 onward.

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