AP source: Devils in bind, close to being sold
NEWARK, New Jersey (AP) — The three-time Stanley Cup champion New Jersey Devils are for sale and a deal is expected before the start of the NHL season.
A person familiar with the negotiations says several groups are vying to buy the financially strapped franchise and there is a chance a deal might be done quickly.
The source spoke to The Associated Press on Thursday and requested anonymity because the negotiations between Devils owner Jeff Vanderbeek and the groups are still active.
Philadelphia 76ers owner Josh Harris heads one group and Calgary billionaire Bill Gallacher is another, as the deal includes operating rights to the Prudential Center.
The team will not relocate, the source said, adding that Vanberbeek will retain a minority ownership with the Devils.
The NHL said it has no interest in taking over the team. Commissioner Gary Bettman addressed the issue on Thursday after a news conference in New York to promote two outdoor games at Yankee Stadium. Earlier in the day, Forbes had reported that the league would likely take over the team in September unless a new owner was found.
“I haven’t seen the Forbes report, but if the suggestion is we’re going to take over the Devils, which is what I’ve heard the report says, it’s not accurate,” Bettman said.
The NHL recently ran the Phoenix Coyotes for four years before finding a new owner.
Forbes reported the Devils have $230 million of debt and that Vanderbeek missed the first payment on a recently restructured bank loan. Vanderbeek seemingly was close to selling the package to a group headed by Philadelphia attorney Andrew Barroway, but the deal fell through.
The source said Barroway’s group, which has invested $30 million in the offer, is still in the mix but at this point it has been “outbid.”
Vanderbeek became a minority owner of the Devils in 2000 and majority owner in 2004.
Vanderbeek was one of the leading proponents behind the building of the Prudential Center, which opened as the Devils’ home in 2007. The New Jersey Nets also played at the arena before moving into a new home in Brooklyn this past season.