Devils

Don't Be So Sure: Speculation About Devils' Financial Savior Persists

Published June 11, 2012

Banking and NHL sources "expressed doubt" about reports Devils co-Owner Jeff Vanderbeek "found an investor, either an individual or a group, to help him meet a $77-million (all currency U.S.) loan payment that is due in late summer," according to David Shoalts of the GLOBE & MAIL. Several sources "expressed doubt that anyone would invest in the Devils." They said that the team’s financial situation "is so dire that the only way to survival is declaring bankruptcy and flushing out the debt through the courts." Then the team could "start over with a new owner and a new lease agreement with the city of Newark." The sources said that there are "at least two groups watching the Devils’ situation closely." They said that the groups are "only interested in buying the Devils if they go into bankruptcy because they believe their current financial situation is unsalvageable" (GLOBE & MAIL, 6/10). However, in N.Y., Josh Kosman cited sources as saying that Vanderbeek has "reached a handshake deal with an investor or investors to pump $200 million into Devils Arena Entertainment, which owns the team and operates the arena." The deal, if "actually completed, will bring more than enough money to pay the $77 million owed to lenders on July 1." One source said that in return for the cash, the investor "would own a majority of the Eastern Conference Champions while Vanderbeek would maintain operating control." But several sources said Friday that they "were skeptical of the news, especially in light of close Vanderbeek deals that did not come through." One source said that the lenders "have not been notified" (N.Y. POST, 6/9). YAHOO SPORTS' Greg Wyshynski wrote, "As far as the investors go, I've heard it's a group based in Ontario that's been in conversations with Vanderbeek and the NHL for some time. They would join as minority partners to Vanderbeek" (SPORTS.YAHOO.com, 6/8).

SEPARATING THE TWO: In Toronto, Steve Simmons notes as the Devils "teeter on the verge of bankruptcy," their pending "economic disaster never makes its way to the dressing room." The team is playing in its fourth Stanley Cup Final since '95, and the fact that Devils President, CEO & GM Lou Lamoriello "is able to insulate his players and his team from the external troubles of the franchise are among his greatest strengths." There is a "hockey team and there is a business -- and there seems almost no connection between the two" (TORONTO SUN, 6/11).  

CONTROLLED CHAOS: In Newark, Stephen Stirling noted the "controlled chaos" during Devils home games is the result of the club's "in-house production team," led by Devils Arena Entertainment Dir of Event Production John Bochiaro. Every aspect of "what fans in the arena see beyond the game itself is controlled by his team, from the scoreboard to the chants, to the music." Bochiaro said Friday, "We’re basically a production company. We go through each game with a fine-toothed comb to see what worked and what didn’t, what fans responded to and what they didn’t. We’re trying to make this the best experience possible for the fans and the loudest atmosphere possible." During games, the group of "about 15 staff members works seamlessly, identifying potential replays, celebrity sightings or former players in the stands" (NJ.com, 6/10).