Ray Chambers has agreed to pay $25 million to unload his 47 percent stake in the team
This is the NY Post, so if you deflate the story by 75% the truth is somewhere in there.
In a stunning development, New Jersey Devils co-owner Ray Chambers has agreed to pay $25 million to unload his 47 percent stake in the team, sources close to the situation told The Post.
Team lenders will get the cash as part of a deal to refinance the franchise’s debt, and principal owner Jeffrey Vanderbeek will get Chambers’ stake in the team, sources said.
The strange deal highlights both the shaky financial condition of the Newark-based team and the caustic relationship between the two owners.
So, basically Vanderbeek is taking almost total control of the team's ownership group and the refinancing will happen? How is that bad news? Leave it to the Post to spin it their way.
I'm not going to pretend to completely understand the business side of the Devils. I just hope this is good news and we can move forward from here (I.E. get Zach locked up).
I'm not going to pretend to completely understand the business side of the Devils. I just hope this is good news and we can move forward from here (I.E. get Zach locked up).
This doesn't solve any money problems we might or might not have. What it does do, however, is give Vanderbeek full say over any moves the team makes, including green-lighting contract signings.
This is a good thing, because now he doesn't have to fight with other owners every time he wants the team to spend money.
This is a bad thing, because now he's the only really significant financial backer behind the team.
Overall, the good outweighs the bad, at least from a fan's perspective. Also, now Vanderbeek can start looking for another minority owner (if he so chooses) if the team does need financial help; if the team doesn't, then he probably keeps total control.
This doesn't solve any money problems we might or might not have. What it does do, however, is give Vanderbeek full say over any moves the team makes, including green-lighting contract signings.
This is a good thing, because now he doesn't have to fight with other owners every time he wants the team to spend money.
This is a bad thing, because now he's the only really significant financial backer behind the team.
Overall, the good outweighs the bad, at least from a fan's perspective. Also, now Vanderbeek can start looking for another minority owner (if he so chooses) if the team does need financial help; if the team doesn't, then he probably keeps total control.
Vanderbeek has always been good about spending money. He knows you have to spend money to make money.
This is good news. And by "pay" do you mean "sell" his stake for $25 mil?
Chambers is selling his stake in the team, I suppose, but he's not being paid for it. He's paying Vanderbeek to take the stake off his hands. Probably because his asset is almost entirely debt at the moment.
Also, now Vanderbeek can start looking for another minority owner (if he so chooses) if the team does need financial help; if the team doesn't, then he probably keeps total control.
Chambers is selling his stake in the team, I suppose, but he's not being paid for it. He's paying Vanderbeek to take the stake off his hands. Probably because his asset is almost entirely debt at the moment.
Interesting. My dad knows all about the financial stuff so I don't usually understand this stuff.
That Post article is really annoying, the more I look at it. It highlights the "shaky" financial position of the team - we're in debt and we know it, but that's because we just built a new arena and almost all the debt is in the arena, which will eventually pay for itself - and the "caustic" relationship between the two owners, which is, of course, being resolved here as the one owner is cashing out.
That Post article is really annoying, the more I look at it. It highlights the "shaky" financial position of the team - we're in debt and we know it, but that's because we just built a new arena and almost all the debt is in the arena, which will eventually pay for itself - and the "caustic" relationship between the two owners, which is, of course, being resolved here as the one owner is cashing out.
... it's the Post.
I'm not sure Vanderbeek has the resources to own the team entirely by himself. What I understand of the deal is that Chambers is paying the creditors off, so that they'll loan Vanderbeek more money to buy the rest of the team from Chambers. Then Vanderbeek will start looking for a new minority owner.
I'm not sure Vanderbeek has the resources to own the team entirely by himself. What I understand of the deal is that Chambers is paying the creditors off, so that they'll loan Vanderbeek more money to buy the rest of the team from Chambers. Then Vanderbeek will start looking for a new minority owner.
I'm not sure Vanderbeek has the resources to own the team entirely by himself. What I understand of the deal is that Chambers is paying the creditors off, so that they'll loan Vanderbeek more money to buy the rest of the team from Chambers. Then Vanderbeek will start looking for a new minority owner.
Quote:
Originally Posted by Classic Devil
That's my assumption as well.
Which is why we need build a pipeline to pump some of that Russian oil money into Newark. It's in abundant supply.
