NY Post: Interesting Reports re Team's Financial Outlook/Possible Solution Good/Bad

[MCDevils]

Deal seen averting $80M debt disaster for Devils - NYPOST.com

Important Points:

- The Devils are “very close” to a deal in which a new investor will pay down the company’s $80 million in overdue debt and give Vanderbeek until the start of next season to raise new capital.

- The new investor would contractually force Vanderbeek, if he does not raise significant additional money by the start of next season, to sell the team, sources said.

- Vanderbeek is working with little-known investment bank, Three Ocean Partners, to raise new equity, and is pretty far along, a source said.


- Obviously lots of playoff home games would help the team greatly. Although the article says this wouldn't solve everything.

 

[nj_cup]

one of the reasons i like the post. thinnk the ledger or the record would print this first?

back to the story its huge if something can get hammered out before the playoffs it would make a lot of people feel easy but even if after july 1st there isnt a deal i think its a sign that we are reaching the end of the tunnel

 

[DevilishWon]

I'd actually feel better if it werent the post. That rag is rarely right.

But I hope they are this time. The killer is my understanding is that the team is marginally profitable form operations...but the debt service is rediculous.

Look like beek and the other partners bought the Devils the same way guys with $80,000/yr jobs bought $750k houses...with debt they couldn't really afford.

It's the American way...ugh

 

[devs30rko]

According to Forbes the devils have been a profitable entity for some time now, the only problem being exactly what you just stated, you have to pay it off first