Yormark is leaving the Panthers to run the business side of Roc Nation -- a sports and entertainment agency headed by Jay-Z. Two former Florida employees with close ties to Yormark already left for Roc Nation over the past few weeks.
Yormark was given a small financial stake in the team when Vinnie Viola and Doug Cifu bought the franchise in September. He will not be retaining it when he leaves.
Babich is a New York-based attorney who has been working closely with Panthers general manager Dale Tallon since the beginning of the season.
Tallon, whose job is said to be "100 percent" secure, pushed for the Panthers to hire Babich in some capacity.
Although Yormark has had little to no say in the hockey side of the organization at least since the new ownership came on, that will not be the case with Babich. Sources say the two will continue to work closely together as Babich works both sides of the business.
The Panthers, who say they are going to significantly increase salary next season, are trying to transform their standing in the local marketplace and hope finally putting a winning product on the ice will bring fans back to Sunrise.
Under Yormark's watch, the Panthers went through seven coaches, five general managers and four different ownership groups. Yormark was hired from the Tampa Bay Lightning in 2003 by then-owner Alan Cohen. Florida had three different coaches that season.
Florida made the playoffs once since Yormark joined the franchise.
Attempts to reach Yormark on Monday morning were unsuccessful.