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Newark to Devils: Pay Up or Else

It's only been a year since the New Jersey Devils moved into their new Newark home at the Prudential Center, but relations between the Devils and its landlord have already gone straight into the toilet. The Newark Housing Authority, the owner of the Pru, has issued a demand letter to the Devils declaring the team in default of its lease of the stadium and demanding immediate payment of $2.4 million in rent.

Not surprisingly, the team disputes that it owes the money, claiming that the Authority cost the team roughly $2.9 million in penalties and costs resulting from cost overruns and delays in construction.

Any lease dispute, including this one regarding rent payments, goes to arbitration if it can't be resolved within 30 days.

The arena seems to be a success, the rental dispute aside, having taken in $3o.1 million in gross revenue in the eight months since it opened. Attendance at Devils games also increased substantially following the move from the Meadowlands. This dispute is simply about money and will be resolved, I'm sure. It is not the best way to start a long relationship, however.

Full post as published by Sports Biz on November 04, 2008 (boomark / email).