News came down this week from Josh Kosman of the New York Post that the New Jersey Devils are having a very difficult time paying off $80 million in debt.
The Devils are said to be awaiting their long-term TV deal with the MSG Network to materialize in order to make their payments. However, sources indicate that the cash-strapped franchise may have trouble closing the deal.
That does not bode well for the Devils who may be $20 million in the red by the end of this season, and won’t be receiving any funds from billionaire co-owner Ray Chambers. Apparently he is no longer willing to bail out the team.
This poses a number of issues for the Devils.
For one thing, they could find themselves in trouble with lenders who may “put the team in default next month” if they aren’t convinced the Devils are on track to pay off their debt.
NHL Commissioner Gary Bettman
And then there’s National Hockey League Commissioner Gary Bettman to deal with. Betteman has told the Devils that the league will have to intervene if progress isn’t made. What that means exactly, isn’t clear yet. Would the NHL take over the Devils as they have done with the Phoenix Coyotes in the past?
Bettman basically told him to figure out a resolution by mid-February or he’ll do what needs to be done.
Asked to comment on the story, a Devils spokesman denied its accuracy.
The facts in this story are wrong.
