Devils in financial trouble

[Chadd 916]

NHL Commissioner Gary Bettman is preparing to take control of the money-losing hockey franchise in the event Vanderbeek fails to refinance the Devils’ debt before a looming Aug. 14 deadline, The Post has learned.

http://www.nypost.co...pV1Ek0Xc8rl9MdI

How important is a deep playoff run to team finances?

Thanks to their success on ice this year, when the team staged an upset win over the New York Rangers in the Eastern Conference Championships, the Devils could go from losing $20 million in the regular season to almost breaking even next year, sources said.

[Axxion89 32]

I knew the Devils have been in financial trouble for at least the last few seasons but the fact that Bettman may take over operations if this debt refinancing does not happen is not a good sign. I always wondered if having the team so close to the Rangers and to an extent the Islanders has limited the Devils potential to generate income, or if this is the result of poor management practices and unwise investment.

[Jason Harris 31]

One thing the article doesn't explain well is whether Vanderbeek's financial troubles are solely due to the operating costs of the Devils or drains from other investments. For instance, The Big D's company was sold over a year ago by the holding company that had privately owned it; that holding company also owned an NHL franchise and European soccer team. Once news started to come out, it was possible to connect the dots that the food company was being sold to raise funds to try to keep the soccer team.

[goblue9280 33]

Hard to believe that a former Lehman Bros executive is flirting with bankruptcy.

[Speedz98 15]

just fyi, the NY post is a pretty bad source for any news Regarding the Devils especially their current financial situation.

A lot of it is just them (NY post) trying to stir things up. Really, no one knows too much about the situation to comment on it.

From what I understand, NJ Devils owe the city of Newark money, but the city failed to keep some of their promises so the Devils are withholding some payments. Also, the city of Newark owes the Devils more money than the Devils owe them. Don't quote me on this because I can't recall what source I learned this information from. It's been a while.

Also, the NHL has forwarded the Devils money that they were going to receive anyways, just a lot sooner.

[MyBoxersSayJoe 132]

I always wondered if having the team so close to the Rangers and to an extent the Islanders has limited the Devils potential to generate income, or if this is the result of poor management practices and unwise investment.

If proximity was an issue, the Flyers would be competition more than the Islanders. A lot of central and south Jersey friends are Flyers fans. Probably poor management of finances and/or politics. On a smaller scale, I know we gave up our season tickets when they relocated to Newark. No simple or easy way for us to get there, where Continental was just a 20-minute drive.

[Chadd 916]

One thing the article doesn't explain well is whether Vanderbeek's financial troubles are solely due to the operating costs of the Devils or drains from other investments.

some quick and dirty numbers:

Average attendance: 15, 346

Average ticket price: 59.52

Regular season home games: 41

total: 37,449,150.72

2011-2012 salary: 61, 704, 157

[coryroth24 15]

Here's some of the BS. Not sure it has to do with Vanderbeek's financial hole he's in or not...

http://www.nj.com/news/index.ssf/2012/04/newark_gets_short_end_in_prude.html

[Fury of One 6]

Well, they'll be hosting the draft in 2013.

http://www.sportsnet.ca/hockey/2012/06/22/nhl_draft_2013_new_jersey_2014_philadelphia/

[shotty 7]

some quick and dirty numbers:

Average attendance: 15, 346

Average ticket price: 59.52

Regular season home games: 41

total: 37,449,150.72

2011-2012 salary: 61, 704, 157

brutal. i'd like to see how many teams are hemorrhaging money like that.

[RadioGaGa 162]

That paints a pretty grim picture, but what about the non ticket revenue? Do they get a share of concessions...what about parking, sales of merch? Sponsorship/rink ads? I realize tickets re the biggest source of income....but surely there is more coming in becasue there is obviously more going out than just player salaries.

[hamstercaster 2]

I'm actually quite surprised to see that the average attendance is 15K plus. Anytime you watch a Devils game, there are so many empty seats that it's hard to believe there's even 10 000 people in attendance. I mean, sure that 15k plus average is for sold tickets and not necessarily in house attendance but are there that many people buying tickets and not showing up to the games?

[Chadd 916]

Sure, a lot of them are paid for by a company in case a client might want to go.

[coryroth24 15]

You're also looking at the premium seats on TV. Once you get above the first tier, the games are usually pretty well attended...

[Machinehead2k5 32]

As an Atlantan, this is what pisses me off about Bettman. He could save Phoenix and might save the Devils, but couldn't step in and save the Thrashers??

[Chadd 916]

As an Atlantan, this is what pisses me off about Bettman. He could save Phoenix and might save the Devils, but couldn't step in and save the Thrashers??

Thrashers ownership issues were very different.

[pbhockey4 0]

Thrashers ownership issues were very different.

The Trashers couldnt make enough money. Hockey doesnt belong in the south.

[BenderHockey 127]

The Trashers couldnt make enough money. Hockey doesnt belong in the south.

That's a pretty douchey thing to say. What about the successful souther franchises? Does that mean that if a team leaves that city, that hockey doesn't belong there? Winnipeg and Quebec City might think differently.

[ibeck 38]

That's a pretty douchey thing to say. What about the successful souther franchises? Does that mean that if a team leaves that city, that hockey doesn't belong there? Winnipeg and Quebec City might think differently.

Atlanta had the flames and the thrashers before those teams relocated. Clearly hockey doesn't work in atlanta.

[Machinehead2k5 32]

Thrashers ownership issues were very different.

If you get your info through the news, I doubt you have heard the true story of what really went down. I have a regular who comes in and talks hockey with me and knows two of the ASG owners. he's told me plenty of things that never made it to the AJC/yahoo/etc news outlets.

As for it not working with the Flames, the owner of the Flames was going bankrupt from his real estate business and needed something very liquidable to sell, hence the Flames were sold. The city of Atlanta supported the Flames.

[Chadd 916]

If you get your info through the news, I doubt you have heard the true story of what really went down.

That's not where I got my info and I'm not going to give names.

[jwmann2 0]

I knew the Devils have been in financial trouble for at least the last few seasons but the fact that Bettman may take over operations if this debt refinancing does not happen is not a good sign. I always wondered if having the team so close to the Rangers and to an extent the Islanders has limited the Devils potential to generate income, or if this is the result of poor management practices and unwise investment.

It does have something to do with it and for that exact reason, you will never see the Whalers back in Hartford. The sport just doesn't have enough popularity for other teams to thrive in markets that the Bruins, Rangers and Islanders have dominated for years.