Puck Holdings, the group formed by YankeeNets principal
investors Lewis Katz and Raymond Chambers, completed its
$176M purchase of the Devils yesterday. Under the deal,
YankeeNets will control more than 50% of the team, with the
remainder held by a small number of limited partners. Lou
Lamoriello will remain as President, CEO & GM of the Devils
(YankeeNets). In N.Y., Mark Everson notes that the sale
comes "some 41 days after the original contracted closing
date" and "only nine days" before the August 31 date on
which McMullen "said he would void the deal." YankeeNets is
"believed to have purchased some" 10% of the team, with Puck
Holdings adding "something more than" 40% (N.Y. DAILY NEWS,
8/23). Also in N.Y., Richard Sandomir writes YankeeNets'
$176M purchase of the Devils "is crucial" to the
organization's plan to build an arena in downtown Newark and
to the "year-round strength of a cable network that would
eventually carry Yankees, Nets and Devils games." Sandomir
notes that the original sale price was $175M, but the price
was "augmented" by $1M as a bonus for the team winning the
Stanley Cup. YankeeNets Chair Harvey Schiller said that
"talks are continuing to settle a lawsuit filed by the MSG
Network to block YankeeNets from forming a cable TV network
with" IMG (N.Y. TIMES, 8/23).
NEW ARENA UPDATE: Meanwhile, NEWSDAY's Steve Zipay
writes that YankeeNets "also received some disappointing
news," as NJ Gov. Christine Whitman said in a letter to the
organization that the state is "willing to contribute only"
$75M toward infrastructure costs for a new arena.
YankeeNets had originally sought $150M in state funds, but
later "trimmed the request" to $123M. YankeeNets "likely
will seek other investors to supplement the project." In
the letter, Whitman also "underscored" that a proposal by
the state and the New Jersey Sports and Exposition Authority
to construct a $250M arena in East Rutherford for the Nets
and Devils by 2003 "remains on the table" (NEWSDAY, 8/23).
Whitman's Chief of Staff, Mike Torpey, on the East
Rutherford option: "There's no harm in us keeping the
alternative of the Meadowlands on the table. But ultimately
they have made it clear that it is their desire to go to
Newark." In N.Y., Ronald Smothers writes "what many
characterized in private as a tough opening negotiating
stand" by Whitman was "nevertheless viewed with gratitude in
public by the Newark, Essex County and YankeeNets officials
who support the arena proposal." Schiller: "It is a step in
the right direction, and the right direction for us is
Newark" (N.Y. TIMES, 8/23).
