Tag: Jeff Vanderbeek

New York Islanders v New Jersey Devils

Report: Devils to lose money in 2014-15


Despite having new owners in Josh Harris and David Blitzer, the New Jersey Devils are scheduled to once again lose money in 2014-15.

According to the report from Tom Gulitti of The Record, Harris and Blitzer — who purchased the team from Jeff Vanderbeek a year ago for $320 million — are still fixing previous financial issues.

The Devils missed the playoffs for a second straight season in 2013-14 and according to Blitzer the team will not turn a profit in 2014-15 even if New Jersey qualifies for the postseason.

“We’re not going to make money this year. Let’s be clear,” said Blitzer. “I don’t know the exact numbers, but our view is to get it to the right place and we know over a longer period of time we do believe we can get it to be a profitable team on the business side or the equation. It is not today. I don’t expect it to be next year, but over time you can’t have a business that over 30 years it doesn’t become a profitable team because that just doesn’t work.”

According to the report, the team had debt issues and was “under invested in” on the business side.

Devils CEO Scott O’Neil points out the team was severely understaffed on the business side with just 76 employees when the new group took over. Since then, the staff has nearly doubled.

The team’s debt isn’t expected to factor into the Devils and GM Lou Lamoriello’s ability to spend money. As it stands, New Jersey sits with less than $5 million to play with.

Lamoriello compared the situation under previous ownership to that of the Phoenix Coyotes saying that he had to report to the league as a result of the team’s financial struggles.

“It was like Phoenix from a hockey standpoint. That was fact,” said Lamoriello. “You had to do things in a different way.”

Lamoriello pointed to the signing of unrestricted free agent Mike Cammalleri and contract extensions to Cory Schneider and Andy Greene as ways things have changed under the new group.

The GM said things are “status quo”  with unrestricted free agent Ryan Carter. According to Gulitti, Carter seems to be waiting for the Devils to move a forward before re-signing him.

When asked about restricted free agent Eric Gelinas, Lamoriello said, “We have a month to go. We want to get him signed.”

New Jersey finished the 2013-14 season with a 35-29-18 record and in 10th place in the Eastern Conference.

Related: Devils GM shakes off 0-13 shootout record, pumps up free agent moves

PHT Morning Skate: Mike Green could be due for big year

Mike Green

PHT’s Morning Skate takes a look around the world of hockey to see what’s happening and what we’ll be talking about around the NHL world and beyond.

Fans in Washington might want to get geeked up for what could be a big season from defenseman Mike Green. Anything that makes us think of the Caps’ salad days from 2009 has to be a good thing. (CSNWashington.com)

Jonathan Toews says it’s a gold medal or bust for Canada at the Olympics in Sochi. It’s also like that every four years for Canada so… Yeah. (CSNChicago.com)

Former Devils majority owner turned minority partner Jeff Vanderbeek had himself a day filled with mixed emotions watching a pair of new guys buy him out of deep trouble. (Fire & Ice)

Meanwhile, the Devils sale is another feather in the cap for NHL Commissioner Gary Bettman says David Shoalts. (The Globe And Mail)

Ottawa restricted free agent Jared Cowen is apparently close to getting paid. Hey, that Alfie money had to go to someone, right? (Ottawa Sun)

If you thought Chicago fans were going to handle the Nashville Predators’ new ticket policy meant to keep them out well, you’re forgetting how fans operate. (The Tennessean)

Report: Devils may be sold to attorney Andrew Barroway

Montreal Canadiens v New Jersey Devils

The talk about the financial distress the New Jersey Devils may or may not be in has been discussed a lot lately. There’s a chance that could all be coming to an end soon, however.

Mike Ozanian of Forbes.com reports the Devils may be sold to attorney Andrew Barroway. He reports the NHLPA is telling its members that Barroway has loaned $30 million to the Devils to help pay down their debt and that a group led by Barroway may be purchasing the team.

Forbes’ report quotes a memorandum that went out to the Players’ Association on June 27, 2013 that says the team has run into “serious cash flow issues” that have resulted in missed payments that were resolved by the league. That much we’d heard about previously. Their comment on Barraway makes for new information.

“Recently, the Club was able to arrange a significant infusion of debt capital ($30 million) from an investor that is interested in purchasing the the Club from [Jeff] Vanderbeek. We understand from League officials that the new investor, Andrew Barraway [sic], is currently negotiating with Vanderbeek and thier [sic] expectation is that either Barroway or another ownership group will end up owning the team within the next 120 days or so.”

PHT reached out to the NHLPA for comment, but they declined to speak about it.

The Devils having a new owner within the next four months would help make for an even busier time for the NHL as they’re on the verge of a resolution regarding the Phoenix Coyotes’ ownerless situation.

Barroway was once part of a group that tried to purchase the Philadelphia 76ers. As for the current owner of the Devils, Tom Gulitti of Fire & Ice adds that Vanderbeek will maintain a minority share of the team.