Are the New Jersey Devils in financial trouble again?
After refinancing debt to help them straighten things out just a few months ago, could the Devils be facing more financial issues?
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Just when you thought the New Jersey Devils had their financial house in order, along comes another report from the New York Post suggesting otherwise.
It was a while ago that the Devils and owner Jeff Vanderbeek were swimming in financial debt until he was able to refinance his debt. At that time he released a statement that everything was good now. "Our future is now secure," were Vanderbeek's words at the time.
Things were fine, until a recent payment was missed, according to the Post.
The team's cash-strapped owner, less than six months after restructuring its debt, has missed an interest payment and now risks defaulting on its new loan, a source with direct knowledge of the situation said.
The latest financial blow-up at Devils Arena Entertainment -- a missed interest payment in April of nearly $3 million -- has surprised those close to the once-proud NHL franchise.
"How can you do a restructuring Dec. 31 and default in April?" the source said. "It's astounding."
Devils Arena, which also operates the Prudential Center, the team's home arena in Newark, owes lenders roughly $170 million.
Welp, that's not good news -- if true. It probably didn't help the Devils to have a shortened season, one made even shorter by them missing the playoffs.
I know a lot of people are skeptical about reports from the Post, but the paper was the first to report on the previous financial concerns that led to the refinancing, though the team did deny the entirety of the report. In other words, take it with as many or as few grains of salt as you need.
I would imagine that this will be something that is cleaned up, perhaps by the addition of an investor into the franchise, but it bears watching.
