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Report: Devils' future clouded by missed interest payment

TSN.ca Staff

6/17/2013 6:23:37 PM

A missed interest payment could threaten the future of the Devils in New Jersey, according to a New York Post report.

The Post's Josh Kosman reported Monday that April's missed payment – six months after owner Jeff Vanderbeek restructured the team's nearly $170 million worth of debt – is the latest financial pitfall to hinder the franchise.

Vanderbeek made a deal to refinance the team's debt and buy out his partners at the end of 2012 in an effort to stabilize the Devils' finances. The agreement combined the debt of the team with that of Devils Arena Entertainment, the operator of the Prudential Center.

That deal required Vanderbeek to make an interest payment of nearly $3 million, according to the Post, which Vanderbeek was unable to do in April. The missed payment now puts Vanderbeek at risk of defaulting on the loan.

The Devils are reportedly seeking up to $20 million from the sale of a minority stake in the team in an effort to have the team's financial issues resolved by this summer.

The New York Post reports that the NHL has twice aided the Devils over the past year, accounting for roughly $30 million in loans, and advances in licensing and other shared revenues.

New Jersey reportedly suffered due to the lockout, losing sponsorship and attendance money over the course of the 2012 NHL lockout and was further hit by the team's inability to make the playoffs in the 2012-13 season.