Bill Gallacher Reportedly Interested In Buying New Jersey Devils

Recent reports have stated that Vanderbeek has managed to reduce the debt significantly, but remains somewhere around $18 million in the hole. He may have a way out, though -- according to The Fourth Period, Calgary billionaire Bill Gallacher is trying to buy most, if not all, of the Devils.

For more on the Devils, check in with In Lou We Trust and SB Nation New York.

The reigning Eastern Conference Champions likely won’t face bankruptcy, despite the passing of an August 14 deadline to settle over $77 million in debt, according to New Jersey Devils blog Fire & Ice. What’s with the sudden patience from lenders who now have the legal right to force managing partner Jeff Vanderbeek and the franchise into bankruptcy? A quiet restructuring of that $77 million figure, according to Fire & Ice:

The window of the CBA and the reported lessening of the total debt presumably gives Vanderbeek time to find new investors to cope with the loss created when Brick City, LLC backed out of its 47 percent stake in the franchise, a move that created the debt uncertainty.

As the NHL prepares to give up ownership of the Phoenix Coyotes, a report indicates that they could find themselves in ownership of another club. According to the New York Post, the league plans to take control over the New Jersey Devils should owner Jeff Vanderbeek fail to refinance the team’s debt by August.

The Post has always been provocative when it comes to the Devils’ financial situation, and Commissioner Gary Bettman has been vocal against the Post’s coverage in the past -- most recently at his State of the League prior to Game 1 of the Stanley Cup Finals.

“The New Jersey situation,” Bettman said, “as we understand it at its most up-to-date point, is that the club, Jeff Vanderbeek, is working on both refinancing the debt on the club and an equity raise. He appears to be fairly confident that he can pull this off in due course in the next few weeks. Since I’ve been in touch with the banks on a regular basis, we seem to be on track.”

The club’s debt is reported to be around $80 million.

↵Newark Mayor Cory Booker doesn’t exactly exchange holiday cards with Devils owner Jeff Vanderbeek, but that hasn’t stopped him from hopping on the bandwagon as the team prepares for the Eastern Conference Finals.

↵

Via the Star-Ledger:

The ruling awarded the city $14.7 million in unpaid rent and other expenses from the Devils, but it also awarded Vanderbeek’s club $15.3 million in parking revenues and excess taxes.

Citing sources, the Post reports that a new investor will pay down the company’s $80 million debt and give Vanderbeek until the start of the 2012-2013 season to raise new capital. If he can’t make that happen, however, he would be forced to sell the team.

While the reported move would give the franchise some breathing room, some think it might just be an extension preceding an imminent sale.

The big problem there is that the Devils are in financial limbo, and for a player thinking about signing a piece of paper that will anchor him down in one spot for potentially the rest of his career, these sorts of things matter. That’s concerning for fans of the Devils and great news for fans of the other 29 teams in the NHL ... or perhaps not.

Parise told the Star-Ledger on Thursday that the financial woes of the Devils organization do not necessarily matter.

Here’s the full statement issued today by the team:

The last line is an obvious shot at the Post’s reporting, which you have to admit is pretty funny even if you love the Post like Rupert Murdoch and hate the Devils with a burning passion. It’s not surprising that the team is denying the report, and while we certainly don’t know the full truth at this point, it’ll be interesting to see what happens as this situation drags on.

Minority owner Ray Chambers has attempted to sell his shares of the team for months, but those attempts have been much less than successful. Meanwhile, majority owner Jeff Vanderbeek, who also acts as one of the public faces of the Devils’ front office alongside general manager Lou Lamiorello, has reportedly told the banks to “get lost,” writes the Post. It appears as though investors are not too happy with Vanderbeek these days, and that certainly doesn’t help Chambers’ sale effort.

If bankruptcy is declared, the team will have 180 days before lenders can repossess the club and force a sale. The Devils owe about $100 million, further complicated by the $180 million owed by Devils Arena Entertainment.

Tom Gulitti of the Bergen Record is one of the best beat writers in the NHL. He’s the authority on the New Jersey Devils, so I’d believe this report from him that says the Devils are not for sale.

Bloomberg.com, which originally reported that the Devils were for sale, has not retracted their report. Still, Gulitti isn’t the only one reporting that it’s inaccurate. Craig Custance of the Sporting News and TSN in Canada are also among the reporters saying that it’s not happening.

He’s been in full control of the team since 2004, when the Wall Street executive left Lehman Brothers to run the team full-time. He’s had control of some portion of the team since 2000.

Vanderbeek has made long strides towards spreading the Devils brand over the last six years. He was the driving force behind the construction of Prudential Center, the new home of the team that opened in 2007.