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Lockout would further muddy Devils ownership

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08:29 AM ET 08.17 | Another day passes. Three days after a widely reported deadline to pay back an $80 million loan, Devils owner Jeff Vanderbeek has yet to close a deal with his angel investors. But the former Lehman Brothers executive still has control of the team that made a lucrative and unlikely run to the Stanley Cup championship in June. And while neither the Devils nor the NHL would confirm a New York Post report Thursday of an imminent two-year financing deal, the team now finds itself staring at a new complication: a possible league-wide lockout. ... For the Devils, a lockout could further complicate Vanderbeek's high-wire act as he tries to maintain control of a team he bought and moved to a new arena in Newark five years ago.

The Star-Ledger

Ilya Kovalchuk, Getty Images Ilya Kovalchuk, Getty Images
August 17, 2012  08:51 AM ET

I sometimes wonder how a franchise that has had as much success as the Devils can continue to be mired in mediocre fan support and financial stability

August 17, 2012  08:58 AM ET
QUOTE(#1):

I sometimes wonder how a franchise that has had as much success as the Devils can continue to be mired in mediocre fan support and financial stability

for all of my "northern snobbery", as its been called, I am beginning to wonder the same thing that is, questioning the validity of a franchise in NJ. As noted, as successful as they have been (damn them!) this shouldn't be happening

August 17, 2012  09:08 AM ET
QUOTE(#2):

for all of my "northern snobbery", as its been called, I am beginning to wonder the same thing that is, questioning the validity of a franchise in NJ. As noted, as successful as they have been (damn them!) this shouldn't be happening

Maybe move them to Toronto, Lord knows they need and NHL team up there.

Danny, are you out there?

August 17, 2012  09:17 AM ET
QUOTE(#1):

I sometimes wonder how a franchise that has had as much success as the Devils can continue to be mired in mediocre fan support and financial stability

Well put. It makes no sense to me either.

August 17, 2012  09:33 AM ET
QUOTE(#3):

Maybe move them to Toronto, Lord knows they need and NHL team up there.Danny, are you out there?

Toronto's been itching for a winner since 1967.....and that is one itch i hope they keep scratching at for a long time

Comment #6 has been removed
Comment #7 has been removed
August 17, 2012  09:52 AM ET
QUOTE(#1):

I sometimes wonder how a franchise that has had as much success as the Devils can continue to be mired in mediocre fan support and financial stability

I wonder if they called themselves the NY Devils if they would get more fan support?

August 17, 2012  10:09 AM ET
QUOTE(#6):

Duly noted. ****.Seriously, though, is that a possibility? Markham Devils?

Actually, its my first ever Toronto tweak. Perhaps we can start a movement to combine the two franchises with Burke out and Lou running the show

August 17, 2012  10:09 AM ET
QUOTE(#8):

I wonder if they called themselves the NY Devils if they would get more fan support?

It works for the Giants and Jets

August 17, 2012  10:11 AM ET
QUOTE(#8):

I wonder if they called themselves the NY Devils if they would get more fan support?

I doubt it. I can't speak for the rest of North America, but it seems to take "new" teams a long time to get established in the the NYC area. The Nets, for example, took forver, and may or may not have done it yet, we'll see what Brooklyn brings for them.

August 17, 2012  10:11 AM ET
QUOTE(#10):

It works for the Giants and Jets

Not a fair comparison (though I get your point) as they were bother originally NYC teams

August 17, 2012  10:19 AM ET

Lockout would further muddy Devils ownership

To be fair not eveyr team can be run as smoothly as To***to.

August 17, 2012  10:29 AM ET
QUOTE(#11):

we'll see what Brooklyn brings for them.

Brooklyn gave up the Dodgers to LA, maybe Newark should cough up the Devils

August 17, 2012  10:31 AM ET
QUOTE(#12):

Not a fair comparison (though I get your point) as they were bother originally NYC teams

I was just pokin' a bit. The NY fans I knowget irked every time I point out the only football team in NY is the Bills

August 17, 2012  10:43 AM ET

These purchases are all leveraged to the hilt with very little cash laid out by the new owner at signing/closing of the deal. The interest payments alone most def. balloon as you get into the later years of the borrowing deal. It's a sh_it structure but hey ButtGoblin allows it.....None of these franchises have cash on hand to weather a downturn (economic or industry), so immediately a pinch in cash flow puts the whole team/franchise in a state of flux. As stated in yesterdays threads the debt to equity ratios are enormous on these teams so private equity funding wont touch them since PE will look for a quick turn around on $ by creating an operational margin. NHL needs to start getting viable ownership groups in place whether it be corporations (Philly, Rag's etc) or through wealthy individuals (Detroit)...but allowing these fly by night wanna be Investment Bankers become owners is going to ultimately force contraction.

The only solution I can see is to create an operational fund within the ownership group where a certain % of profits is put into a fund by profitable teams, invested, and in situations like this with the Devils, the principal can be loaned to the franchise in need with equitable repayment schedule and at reasonable rates.

August 17, 2012  10:44 AM ET
QUOTE(#15):

I was just pokin' a bit. The NY fans I knowget irked every time I point out the only football team in NY is the Bills

Cowboys fan :))))

Could careless :)))))

August 17, 2012  10:45 AM ET
QUOTE(#14):

Brooklyn gave up the Dodgers to LA, maybe Newark should cough up the Devils

The Polo Grounds/Yankee Stadium gave up the Giants and Shea Stadium gave up the Jets :)))

August 17, 2012  10:49 AM ET
QUOTE(#17):

Cowboys fan :))))Could careless :)))))

Raider fan --didn't our teams put on a offensive show this past Monday night.

 
August 17, 2012  10:52 AM ET
QUOTE(#19):

Raider fan --didn't our teams put on a offensive show this past Monday night.

lol

shut it off at half time

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