Update on the Newark Arena

http://sports.yahoo.com/nhl/news;_ylt=AtZehCQhtKS7KRRZ4K0rWMl7vLYF?slug=ap-devilsarena&prov=ap&type=lgns

Doesn't say much...I'm sure Lou will fork over the dough. Can't wait to see the new arena next year.

I am confused on this because there were reports of the deal being finalized over a week ago. Here is a link to a Newsday article, "Devils finalize arena deal with Newark. (http://sports.newsday.com/default.asp?c=newsday&page=nhl/news/ADN3998540.htm)"
For those unaware of it, here is a link to the Devils Newark Arena Cam (http://www.newjerseydevils.com/2005/html/fanzone/video/newarkarena/index.html).

They finalized the agreement.
Now they want a letter of credit. Money!
Separate paperwork.

Am I the only one amazed at the restraint ATLANTARANGER has shown?

They finalized the agreement.
Now they want a letter of credit. Money!
Separate paperwork.

This is from the Devils official site, "Devils and City of Newark Finalize Arena Deal (http://www.newjerseydevils.com/2005/html/theteam/teamnews/newarkfinalized011206.php),"Newark, NJ – The City of Newark and the New Jersey Devils have reached a definitive agreement on the Devils Financing Commitment that will allow the Newark Arena Project to move full speed ahead and be completed on time for the Devils opening Game in October of 2007!“The Agreement reached today allows for the Arena to move on a fast track basis unimpeded by conditions of performance that were the source of conflict in the past. The Devils will secure their obligation with a $100 million letter of credit,” said Richard Monteilh.If the Yahoo story is correct, then conditions are impeding the arena's progression.

Maybe Jeff Vanderbeek is worried about letting the Sharpe James Cayman Islands Off-Shore Holding Company keep the $100 million bank note.

Am I the only one amazed at the restraint ATLANTARANGER has shown?
I know what I am talking about even though I am a mean, nasty RANGER's fan.
Seriously, this issue is all tied to a very unpleasant topic for devil fans, attendance.
I work in the finance arena, commercial loans specifically. Bottom line is, NJD's attendance is down. There has been a steady decline the past 4 years or so. Declining attendance = declinging cash flows. One of the key ratios is cash flow. Cash flow helps the financial analysis determine if a company can
1) how much can they afford to borrow
2) what is their coverage, cash to debt service, interest, principal
3) what is the price, cost to grant the debt.
4) what are their cash flow trends, up, down, flat

Too many are tilting in the wrong direction for NJ. This is a great deal for the devils, not doubt, right? Why the foot dragging? Stop and think for a moment. The holdup is the language, the city wants a guaranty from the devils. Meaning, if for any reason NJ backs out, moves, goes out of business, is sold, they have to folk over the $100M no questions asked. That is what a Irrevocable Letter of Credit is. It is your financial guaranty that you will pay on demand.

Easy enough to understand, right? Ah, but here's the twist. The Irrevocable Letter of Credit needs to be backed up by something tangible, an asset or assets, or if the company is strong enough is credit worthy on its own. The devils are not credit worthy on their own. That means that the owner needs to personally guarantee the Irrevocable Standby L/C. This is where the rubber meets the road. That is where I think the hang up is. He needs to put his money, his hard earned asstes that he has amassed over his career on the dotted line. The trend is saying to him your team is not being supported. He was in the business, he knows. Sure an analysis can point that the trend will turn around and people will come if you build it.

Or will they? NJD's have been extremely successful on the ice, yet the team despite its success has struggled at the gate. What happens if the team slides and is not that good? NJD's are aging, they do not have the level and quality of depth of prospects they had in their hay day. History shows what happened to Montreal, Edmonton and LI. Montreal and Edmonton were in strong markets and maintained their base. The Isles were and are very similar to NJ. History is a teacher. The facts do not lie. All of this I am sure is being considered.

I trully hope that the deal gets done. The rivialry is a live and well. Hell we don;t want to get cheated out of whipping your butts for 7 years straight. This deal has to get done. Bottom rail on top now!

Am I the only one amazed at the restraint ATLANTARANGER has shown?


Well he was a little late (probably busy sticking needles in a Brodeur voodoo doll...) but he didn't disappoint. Thankfully there's an ignore feature and I don't have to bother with his tripe. :handclap:

what is amazing is that a person with such an important job would waste his valuable time on a topic regarding an opposing team. Then does not even know the sticking point on the Devils side. The Devils are responsible for all cost overruns. The overruns in the Northeast can easily double the Devils investment. They have been unable to come up with a contract with cost certainty.

Besides which it should be a crime when a city/state like Newark is willing to spend money irresponsibly. Hopefully this will blow up the whole deal the land will be developed in way to bring real revenue to Newark and then hopefully the State wises up and kills the Giants/Jets deal.

The Arena will be built. The reason that Newark is pressing is b/c the mayor wants to announce he's seeking reelection. The Newark Election is in May, so he wants no fodder used against him.

$100M letter of credit from Devils clears way for Newark arena (http://www.newsday.com/news/local/wire/newjersey/ny-bc-nj--devilsarena0124jan24,0,6821656.story?coll=ny-region-apnewjersey)

January 24, 2006, 4:13 PM EST

NEWARK, N.J. -- The city netted a $100 million letter of credit from the New Jersey Devils on Tuesday, and officials said the document ensures the team will begin playing hockey in a new downtown arena less than two years from now.

aw crap...I just realized 2007 meant another two seasons from now and not next year...DAMNIT!

I know what I am talking about even though I am a mean, nasty RANGER's fan.
Seriously, this issue is all tied to a very unpleasant topic for devil fans, attendance.
I work in the finance arena, commercial loans specifically. Bottom line is, NJD's attendance is down. There has been a steady decline the past 4 years or so. Declining attendance = declinging cash flows. One of the key ratios is cash flow. Cash flow helps the financial analysis determine if a company can
1) how much can they afford to borrow
2) what is their coverage, cash to debt service, interest, principal
3) what is the price, cost to grant the debt.
4) what are their cash flow trends, up, down, flat

Too many are tilting in the wrong direction for NJ. This is a great deal for the devils, not doubt, right? Why the foot dragging? Stop and think for a moment. The holdup is the language, the city wants a guaranty from the devils. Meaning, if for any reason NJ backs out, moves, goes out of business, is sold, they have to folk over the $100M no questions asked. That is what a Irrevocable Letter of Credit is. It is your financial guaranty that you will pay on demand.

Easy enough to understand, right? Ah, but here's the twist. The Irrevocable Letter of Credit needs to be backed up by something tangible, an asset or assets, or if the company is strong enough is credit worthy on its own. The devils are not credit worthy on their own. That means that the owner needs to personally guarantee the Irrevocable Standby L/C. This is where the rubber meets the road. That is where I think the hang up is. He needs to put his money, his hard earned asstes that he has amassed over his career on the dotted line. The trend is saying to him your team is not being supported. He was in the business, he knows. Sure an analysis can point that the trend will turn around and people will come if you build it.

Or will they? NJD's have been extremely successful on the ice, yet the team despite its success has struggled at the gate. What happens if the team slides and is not that good? NJD's are aging, they do not have the level and quality of depth of prospects they had in their hay day. History shows what happened to Montreal, Edmonton and LI. Montreal and Edmonton were in strong markets and maintained their base. The Isles were and are very similar to NJ. History is a teacher. The facts do not lie. All of this I am sure is being considered.

I trully hope that the deal gets done. The rivialry is a live and well. Hell we don;t want to get cheated out of whipping your butts for 7 years straight. This deal has to get done. Bottom rail on top now!


You can back to reading Cablevision's Annual Report and watching your New York Oilers 1994 Stanley Cup win. Live in your glory, that's all your team has given you. Your points are all asinine and only concern you and rest of the Ranger$ fans that like to talk about the Devils finances and how the Suits are the best part of your franchise.
Never have you mentioned once that the CAA gives the Devils the worst gate receipt deal. The Newark Arena allows for the Devils to keep their Gate receipt in a gate receipt league. You've also neglected to mention that the Rangers have missed the playoffs in 7 years and haven't done anything since 1994. Ever since the Oilers left New York, your team hasn't done ****. Until the Rangers win anything you have no bragging rights.

You've also forgot to mention how you can't stomach the fact that even after losing the Scotts/Elias to hep A, Burns battling Cancer (get better), and not so favorable FA signings, we are on your teams *** as well as climbing the Standings. Three Cups, Four SC final appearances and a winning pedrigree are what matter to a real Hockey fan, regardless of team. ANALysts and accountants from Big Five firms get off on the numbers, I guess that's the type of fan you are. Since you can't beat us on the ice, you want to beat us off.

As much as I hate the Rangers/Flyers/Penguins/Maple Leafs, I also love the rivalries. This Arena, regardless of how it was paid for, will be ready for when the Devils lease expires at the CAA. One thing you can't take away from the fans is our memories of the Cups, playoff run and having to witness a legend in our time, Marty Brodeur. What have your Rangers giving you lately?