: News Article:
Ray Chambers has agreed to pay $25 million to unload his 47 percent stake in the team
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09-24-2011, 10:42 PM
Join Date: Mar 2007
Originally Posted by
Isn't there an ongoing dispute with the city of Newark over how much money is owed, due to Newark lagging on the opening of the building?
That's chickenscratch and has to do with the BS deal that Sharpe James cut for the city. The city is looking for something like a million and change a year. Some rent.
What the loan is for is the money the Devils put up for the building. IIRC, they had a hard time coming up with it too, I think they just made the deadline. So the total for that must have been $107M. Makes sense, it's a $300M+ building and the state, um, I mean the city of Newark, kicked in $200M.
IF this is true, they survived the first balloon, Chambers walked away from his debt (thus being his payment for his share of the team, probably minimum value $120M, most likely more considering he'd still be on the hook and the debt will probably just bloat leading to some big problems next time around), and JVB is the lucky owner of a big mountain of debt that can't realistically be paid off. Outside investors aren't going to be easy to find unless operations get a helluva lot more streamlined and profitable.
He'll have to sell by the next balloon and will take a bath. Hope he's been crookedly syphoning money out.
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