After months of speculation, Devils Owner John McMullen
announced yesterday that he has sold the team to YankeeNets,
"clearing the way" for the Devils and Nets to move to a
proposed new arena in Newark, according to Doug Most of the
Bergen RECORD. McMullen, who purchased the NHL Rockies in
'82 and immediately moved them to NJ: "I'd like to say I'll
be remembered as the guy who brought hockey to the state of
New Jersey." But McMullen added that he would probably be
remembered "as the guy who sold the team." Although terms
of the deal were not disclosed, a source said that
YankeeNets will pay about $175M for the Devils, about $40M
more than their "estimated worth." The transaction "won't
go through until mid-July" so McMullen can stay with the
team, which has the second best record in the NHL, as it
pursues its second Stanley Cup. Meanwhile, YankeeNets Chair
Harvey Schiller reiterated the company's desire to move the
Devils and Nets out of the Meadowlands and into a proposed
new arena in Newark and said that he's "looking for
governmental support for the redevelopment" of the city.
Without the two teams, the Meadowlands would be left with
only the Giants and Jets, along with soccer and horse
racing. But Most notes "there is interest" in the
Meadowlands from NASCAR to build a race track in the N.Y.
area, as well as plans by the NJ Sports & Exposition
Authority for sports-themed restaurants and family
entertainment. NJ Gov. Christine Whitman, on the
Meadowlands: "We will continue to have horse racing. The
football teams aren't going anywhere. [It] is a tremendous
venue and it will remain so" (Bergen RECORD, 3/17).
KATZ AND CHAMBERS TAKE LEAD: In N.Y., Richard Sandomir
writes that the deal includes a $1M bonus for McMullen if
the Devils win the Stanley Cup this year. The agreement was
made with Puck Holdings, whose principal investors are Nets
co-Owners Raymond Chambers and Lewis Katz. Chambers and
Katz "are making the initial payments because of the Devils'
important role in building the Newark arena -- and because
YankeeNets raised their debt load by $200 million last week
with the sale of junk bonds" (N.Y. TIMES, 3/17). The Bonham
Group Chair Dean Bonham, on YankeeNets' acquisition of the
Devils: "This could make them the most powerful sports
organization in the world" (BLOOMBERG, 3/16).
PAYING OFF: In Newark, Rich Chere writes that the sale
will make Devils President & GM Lou Lamoriello "a very
wealthy man," as his ownership stake in the team is
estimated at 11%, which means the sale "will bring him
almost" $20M. But Lamoriello's future with the team is
uncertain. McMullen: "I expressed (during sale
negotiations) the fact that myself, Lou and my son Peter are
all free agents. It's up to them what happens" (Newark
STAR-LEDGER, 3/17). McMullen was "offered a chance to stay
on as owner of the Devils and join forces with the Nets in
Newark," but declined. McMullen: "It wasn't in my heart.
My heart was in going to Hoboken" (N.Y. DAILY NEWS, 3/17).
HE WAS A GOOD MAN: In NJ, John Rowe profiles McMullen's
18-year ownership of the franchise and calls him a "father
figure" who the players "trusted enough to tell him about
their personal problems." Rowe: "McMullen was always there
when his players needed him" (Bergen RECORD, 3/17).
MCMULLEN HEADING HOME TO CO? In N.Y., Ralph Vacchiano
has learned that McMullen "has expressed interest in buying"
the Avalanche (N.Y. DAILY NEWS, 3/17).
