Vanderbeek: Devils' finances unaffected by Lehman collapse

Some of you had expressed some concern over whether today's news that Lehman Brothers Holdings, Inc. filed for bankruptcy would affect the Devils' budget and spending plans because team chairman and managing partner Jeff Vanderbeek used to work there and may or may not have still been invested financially in the company.

When I spoke to Vanderbeek earlier this evening, he did not get into details of his financial portfolio, but said firmly that Lehman Brothers' demise "does not and will not affect the team in any way."

Vanderbeek worked at Lehman Brothers for 21 years, including the last two years in the office of the chairman as the head of global risk management, private equity and strategy, before leaving the firm in March of 2004 to take over the Devils and organize their plans to build an arena in Newark. He still knows many people who worked there.

"I'm just incredibly sad for the people that are there and the people that have spent a long time there and worked incredibly hard to get Lehman where it was, starting way back in 1994 when it became a public company," he said. "It's just incredibly said. That's really my one emotion."

I also asked Vanderbeek about season ticket sales as the start of training camp approaches -- the first practice for the veterans is on Saturday.

"Sales are at or slightly above our budget," Vanderbeek said. "We expected two things: a bit of a drop-off from people who were just looking to see what the arena was for the first time (last season), but we also expected to at least fill that gap in with people who were late to the game last year and now moved into season tickets and that's just about happening. We're just about at budget of what we thought would be the renewals and we have a healthy increase in the amount of new season ticket holders coming on board and new partial (season ticket plan) people coming on board. The encouraging sign is the new stuff and how the new fans are coming from different areas because of the mass transportation aspect of the new building."

Comments

[modnarm]

thats good to hear.. for the Devils.. sucks for the people.

and just think how much over their budget they'd be if they LOWERED ticket prices by 15%!!!!!

[aarrgghhhh]

Hey, TG, Medvedev has a dumb quote out there about a group of NHL players that want to go play in Russia.

One of them is Elias, could you get a quote from him on that, I think it would be interesting. :)

[TG]

I'll ask Patrik about that, but I have my doubts that he actually would want to play in Russia again after what happened to him there during the lockout.

[BF]

TG, you should have asked him where our train passes are.

[Falcone]

Vanderbeek had to have seen this coming that's why I don't think the Devils are in trouble. They (Lehman Bros) were playing with fire for a long time and it was only a matter of time before they got burned.

Plus you should never put all your investments or 401k into your company. I'm sure the ex Chairman of Global Risk knows or knew this.

[MoonDragn]

Alot of these companies hedge their risks anyway. I'm sure Vanderbeek did this too.

[Gunther]

Modnarm:

The Devils lowered 50% of the pricing this season, many by more than 15%. Maybe you should look at the Devs web page before you open your mouth.

And BF, the transit passes come from NJ Transit, then go the Devils and finally into your impatient hands. They are starting to go out this week, so relax.

[Kevin]

Funny you say that Gunther, because the black seats and the front row went up $20 per ticket, my seats went up a small amount in the lowers and my buddy has a half season plan and his went up $5, or something like 15%. Maybe you should take a look at last seasons prices before you OPEN YOUR MOUTH... Or maybe you should pop a valium before you post attacks on a friendly Devils blog.

[Gunther]

Kevin:

I'm not attacking anyone. I'm merely posting the truth to comments that were incorrect. While some prices did go up, almost 74% stayed the same or went down. While 2 price zones did go up downstairs (the clubs which sold out last year and the Devils red, the Devs lowered prices in 4 other sections, three of which are newly created to reflect the price drop. This includes the $49 seat downstairs.

Also, where does your buddy sit with his half season? The team opened new sections for partial plans this year. He might be in a better seat and only paying $5 more.

Just the facts. And I will take a valium if you have one. Sounds like you're a little upset you missed the boat on the price drop.

[Gunther]

Looks like this was deleted originally. Kevin, I was merely responding to incorrect posts. The Devs did lower 50% of their prices this year. They did offer new price zones for partial plans, so maybe your friend is sitting in better seats for only $5. And while the Devs raised Club prices (sold out last year) and the Devils Red seats, they lowered the prices in every other section downstairs, including the $49 seats.

I'm not trying to be confrontational here, but being a "friendly" blog shouldn't offer the opportunity to misrepresent the truth.

[BF]

Gunther, I am impatient. They said they may not be able to get them to us by preseason. I had to pay an extra $50.00 because they now include preseason (which we did not have last year) and now they are telling me I might not get them for those games. And how is it that the flash passes dont come out until last week so now I have to shell out $1000.00 in a matter of days to get them on time.

Yes I'm done whining now, carry on.

[Gunther]

Ooof. I wasn't aware of the delay BF. I'm sure the delay came from NJ Transit. The increase I guess we have to blame increased ridership (by Devs fans and overall through the system) and fuel prices. Maybe the 50% of fans that took the train last year was TOO good a thing.

One thing that really sucks is that although you get the preseason games on the pass (if you get it on time), you don't get the playoffs this year included. What's the matter NJ Transit, have you been reading the pundits about the demise of the Devils?

[Kevin]

Not at all upset, it's a product of sitting on the glass. But to make a blanket statement about getting facts straight when you misrepresented the situation by inferring the majority was representitive of the whole is also incorrect. The reality is the team still is very high in rankings for most expensive ticket prices. The idea that because the margainally decrease the price of select tickets makes this a fan friendly move is short sighted. Perhaps if you saw the vast patches of empty red seats last season, you would realize this is a pricing correction due to the already inflated prices the Devils offered for the opening season. Dropping prices simply helps fill some seats, it's not the team giving back to the fans.

Sidney Crosby hand delivered some season tickets in Pitts. I spent 10K on my tickets this season and got a Devils Legion card for it. May be it's time they start making season tickets more than the right to go to games. Most other successful franchises have, or at least have a large enough fan base to compensate for their lack of consideration on the matter.

[BF]

I'm sure it was transit but it still sucks. One of the account reps said she wasnt sure but she was hearing another $30 to $50 a pass for the playoffs!

[jules]

Funny - I contacted NJT over the summer about the passes, and it sounded more that the holdup was on the Devils' end because NJT didn't anticipate any price increase. They even directed me to the flash pass web description from last season.

At least they'll be rolling out more of those new trains this season!

[BF]

lovely, its starting to sound like we will be getting these around cristmas. WOOOOHOOOO

[ScottE]

Back to the original topic, I'm sure the Lehman (and Merrill Lynch, and whoever's next) collapses WILL impact the team, albeit indirectly. That impact will be felt in the area of high-end ticket sales (season tickets, boxes, etc). There weren't many people who could afford these seats to begin with, and now there are even fewer.

[Grand Master Devil]

You all need to stop worrying about finances/etc of the team and talk some hockey. Go buy some tickets and support the team and stop whining.
Most other fanbases just show up and deal with the high ticket prices/etc.

[Pearl Jammed(RJ Arditti)]

Grand Master Devil, there isn;t really much to discuss at this point. And it must be nice if the current economic recession isn;t having an effect on you, but for the majority of the American Population its definitely taking its toll. its easy to say just go out and buy tickets, but when you have a mortgage and other bills to pay, its not so easy to do

[MoonDragn]

Blame it on the gas prices instead. Did you know when President Bush was first elected gas prices were at about $1.30? Look at where it is now?

Is Bush suffering? Is vice president Cheny? Kind of funny how they both own stock in oil companies huh?

The Lehman brothers collapse is just the latest symptom of this oil monopoly and we need to get to alternative fuels as soon as we can before America goes bankrupt.

[Jason]

MoonDragon, we should meet up at a game sometime so I can lend you a dollar to go buy a clue.