The New Jersey Devils are likely to be taken over by the National Hockey League around the time the season begins next month when teams begin cutting payroll checks unless a buyer for the team quickly steps up according to multiple sources. Neither the NHL or the Devils would comment on the situation. The Devils have $230 million of debt and team owner Jeff Vanderbeek missed the first payment on a recently restructured bank loan. The team’s annual debt payment is around $15 million a year and in the past the Devils have already used prepayments of future revenue streams to pay bills. Andrew Barroway was poised to buy the hockey team and operating rights to the Prudential Center but withdrew his offer within the past two weeks after getting a closer look at the team’s books. Non-NHL events are down at the Prudential Center also hurting Vanderbeek’s financial situation. One reason: arena operators prepay a portion of the money they are going to pay acts like rock bands and the circus and sources say the Devils do not have the cash to book events. During the first quarter of 2013 the Prudential Center was not among the world’s top 50 busiest arenas. The prior year it was ranked 11th-busiest.
NHL Takeover Of New Jersey Devils Looming
Forbes.com | Aug 8