By Rick Horrow and Karla Swatek
August 23, 2013
After years of financial instability, the New Jersey Devils finally have adequate capital after being purchased by private equity investor Josh Harris. Previous Devils owner Jeff Vanderbeek had burdened the team with approximately $200 million in debt, which Harris is assuming in his $320 million purchase price.
Meanwhile, Ottawa Senators owner Eugene Melnyk acknowledged that last season’s lockout was “extremely painful financially” for his club. The Senators reportedly are operating with an internal salary cap of $48 million, far below the league limit of $64 million.
The last season’s NHL lockout undoubtedly had a negative impact on every NHL team’s bottom line. Rather than sell, which was Jeff Vanderbeek’s last option at this point in time, Melynk has been trying to win approval for a casino next to the team’s arena. He refuses to invest heavily in the team or city until his plan is approved.
