Devils Owner Vanderbeek Close To Finalizing Deal With Investor

Devils Chair & Managing Partner Jeff Vanderbeek is "close to sewing up a deal with a deep-pocketed investor," according to Josh Kosman of the N.Y. POST. The Devils "are 'very close' to a deal in which a new investor will pay down the company’s $80 million in overdue debt and give Vanderbeek until the start of next season to raise new capital." Sources said that if Vanderbeek "can’t line up additional capital by the fall, he would be forced to sell the team." A source said that the unnamed investor has "exchanged term sheets with the lending group and Vanderbeek." For the last several months, the NHL has "funded Devils operations -- advancing the team almost" $10M against future revenue. A source said, "This could be a bridge to a sale." A source said that Vanderbeek is working with investment bank Three Ocean Partners to "raise new equity, and is pretty far along" (N.Y. POST, 2/21).

PAY TO PLAY: In N.Y., Larry Brooks asked if the NHL is "only fronting the Devils their own money, then why would the league put a double-secret probation cap on the team's payroll?" Brooks wrote just as has been the case with the Coyotes, the Stars and "who knows how many other franchises where NHL deputy commissioner Bill Daly has been consulted regarding personnel moves involving additional payroll, it is shortsighted for the league to withhold approval of deals that presumably would strengthen these wards of the state." He asked what is the "point of maintaining a franchise that’s too mediocre to fail?" (N.Y. POST, 2/20).