According to reports from the Bergen Record’s Fire & Ice Report and updated here the sale of the controlling interest in the New Jersey Devils from current owner Jeff Vanderbeek to a group led by billionaire Philadelphia 76ers’ owner Joshua Harris could be approved by the NHL’s Board of Governors as early as tomorrow.
The Devils have called an 11:00 am press conference for Thursday, and the sale is expected to be the main news on the agenda.
As was reported previously by numerous sources, including LWOS’ own Ken Hill, Vanderbeek has been gotten himself into a load of trouble by being unable to make the interest payments on the near $225 million in debt which is secured by the franchise and their building, the Prudential Center, in Newark, New Jersey.
Vanderbeek’s lack of liquidity has greatly contributed to the arena’s difficulties as he is unable to come up with the up front cash needed to book the arena with top concerts and other entertainment acts when the Devils aren’t playing. Without the upfront payments, top bands and entertainers are going to other facilities in the New York area.
The purchase by the Harris led group is reportedly for more than $300 million and perhaps as much as $320 million which includes Harris absorbing the Devils current debts ($161 million to banks, $30 million to Andrew Barroway, a Philadelphia attorney, and $35 million to the NHL). Vanderbeek is expected to maintain some minority percentage of the team, though he will relinquish his control.
Harris helped found Apollo Global Management, which is a private equity firm, and is the source of his vast fortune estimated to be well in excess of $1 billion.
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