Yesterday, the New York Post published an article stating that the New Jersey Devils missed a September 1st deadline to pay $100 million to lenders. Later in the day, the Devils organization announced that the Post’s story was “patently false.” If that’s the case, it sounds like Forbes has the same false information—because they too are reporting that the franchise was unable to pay creditors on September 1st.
Forbes goes deeper to explain that even if the team failed to make promised payments earlier this month, any bankruptcy proceedings would still be in the distant future (read: after the season). Forbes Executive Editor Mike Ozanian explains the details:
“Despite being unable to pay lenders $100 million that was due September 1, the NHL’s New Jersey Devils do not have to worry about being forced into bankruptcy by creditors for at least nine months because a consent letter stipulates lenders cannot take action against the Devils until after the last game of this season’s Stanley Cup playoffs, which should be around mid-June.”
Jeff Vanderbeek and Brick City LLC currently co-own the Devils with each claiming 47% in the NHL franchise. Brick City LLC has been looking to sell off their interest since February—an interest that Vanderbeek now plans on purchasing in order to refinance the team. Where it could get interesting is the value of the team vs. the amount of the debt. Forbes valued the Devils at $218 million last December—a value that includes money made from non-NHL events. Unfortunately for Vanderbeek, those projections for the coming year can be expected to decrease as forty-one New Jersey Nets home games would vanish if a potential NBA lockout wipes out the 2011-12 season. Even if the teams can salvage part of the season, revenue will be lost with each and every game missed. Mix in the fact that the outstanding debts stand at $250 million and refinancing the team might not be as easy as it sounds.
For the moment, we can give both sides the benefit of the doubt. Yes, the New York Post was correct when they said the Devils could face bankruptcy proceedings for failing to pay on September 1. On the other hand, the Devils don’t believe their facing bankruptcy because they have until June to hammer out the Brick City buyout and refinance the team. Either way, we’re splitting hairs.
No matter how you slice it, it would help everyone involved if the Devils could get off to a good start. They’ve already sold more tickets than they had at this time last season—so there’s potential to start bringing fans into the building. In a gate-driven league, there’s no substitute for sellout crowds packing the arena, paying for parking, buying beer, and picking up merchandise at The Rock.
Let’s be honest: nothing brings in fans and revenue quite like winning.
The St. Louis Blues won’t be thrilled with the way they played in the third period, but in the end, they did just enough to come away with a 4-3 overtime win over the Dallas Stars in Game 2. The Blues’ win means that the series will head to St. Louis tied 1-1.
The Stars opened the scoring in the first period, but the Blues responded by scoring three unanswered goals (Patrik Berglund, Joel Edmundson, Troy Brouwer) on five shots. Stars coach Lindy Ruff had seen enough from starter Kari Lehtonen at that point. He yanked Lehtonen in favor of Antti Niemi at the start of the second period.
Neither team was able to find the back of the net in the second period, but things got crazy in the third.
With his team still trailing 3-1, Mattias Janmark split Alex Pietrangelo and Colton Parayko before scoring a great goal.
Moments after Janmark’s goal, Brian Elliott took a Jason Spezza blast off the mask. Elliott was shaken up on the play (he even lost one of his contact lenses), but he did stay in the game.
Stars captain Jamie Benn (surprise, surprise) leveled the score by burying a goal by Brian Elliott with under three minutes in regulation.
Like they did during their first round series against Chicago, the Blues took some time to regroup before finding a way to get the job done.
The Blues’ power play went back to work after Antoine Roussel took his third penalty of the game. That’s when the birthday boy, David Backes, came through.
That’s a nice way to celebrate your 32nd birthday.
Game 3 goes Tuesday night in St. Louis.
This definitely wasn’t the way the St. Louis Blues drew it up.
The Blues entered the third period of Game 2 with a 3-1 lead. Unfortunately for them, they weren’t able to shut the game down on the road.
St. Louis jumped ahead 3-1 after 20 minutes before Dallas decided to pull Kari Lehtonen in favor of Antti Niemi. The move didn’t provide any results in the middle frame, but something certainly sparked the Stars in the third period.
Mattias Janmark cut the deficit to 3-2 with this beauty (notice how he split Colton Parayko and Alex Pietrangelo).
With less than three minutes remaining in regulation, Stars captain Jamie Benn tied it up (top).
It’s safe to say this wasn’t a memorable third period for the Blues.
A bit of a scary moment in the third period of Game 2 between the Stars and Blues.
Less than five minutes into the third period, Jason Spezza took a shot that caught Blues goalie Brian Elliott square in the mask. Play was halted as Elliott remained down. It appears as though the shot to the mask also made Elliott lose one of his contacts.
Thankfully, Elliott wasn’t seriously injured on the play. After being examined by the team doctor, he was allowed to stay into the game. He did need a new mask though (he got his original one back a few minutes later).
You can watch the play by clicking the video at the top of the page.
The Blues currently lead 3-2 late in the third period.
Here’s some Twitter reaction:
Kari Lehtonen might have been more hit than miss in the playoffs going into today’s action, but Game 2 against St. Louis was certainly a start he’d like to forget.
Dallas outshot St. Louis 10-5 in the first frame, but the Blues still managed to take a 3-1 lead. Antti Niemi replaced Lehtonen for the second period which means, barring another goalie change, Lehtonen will actually end up with a sub-.500 save percentage this afternoon.
The numbers obviously look bad and it’s hard not to blame Lehtonen in the face of that, but the Blues deserve a lot of the credit for those goals. Patrik Berglund had a great shot on goal for the first marker, Joel Edmundson‘s first career playoff goal came after a nice setup by Troy Brouwer, and when Brouwer collected his own goal it was off of a rebound during a power play.
So to an extent, you could say Lehtonen looked bad due to circumstances that were very unfavorable to him. Nevertheless, the Stars needed to shake things up after what was unquestionably a bad period for them.