The Puck Stops Here
Tampa - The Next Phoenix
by PuckStopsHere on 01/21/10 at 10:11 AM ET
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In September, I wrote that the Tampa Bay Lightning might be the next NHL team in bankruptcy. It seems that they are headed down that path. The team is in default on the loan that they took out with the former owner for their initial purchase, according to Bruce McLeod of the Macomb Daily (a Michigan newspaper).
The current Tampa Bay ownership group was never on strong footing. Oren Koules, producer of the Saw Movies and Len Barrie, a former NHL player who had real estate in Victoria, BC (and some minority partners) purchased the team in 2008 under the name OK Hockey LLC. They promptly made some short-sighted but attention grabbing player moves and public announcements which made them very newsworthy figures for a few months. The moves did not work out and Tampa Bay was quickly reduced from recent former Stanley Cup champion to a team that is struggling at the gate,
Their initial purchase raised concerns about how much money they had as they could not get financing through traditional methods and were given a loan by Palace Sports and Entertainment (the company that former owner Bill Davidson ran the Lightning and other sports teams through). As time passed, concerns about money continued. Len Barrie dropped out of the ownership group early this season amidst allegations that he used funds from his real estate development company - Bear Mountain Estates - in the Lightning purchase instead of his own money. This left Oren Koules alone running the team. The reason that he needed partners (he was not wealthy enough to run things by himself) had not changed. Nevertheless, he was running things by himself. The NHL is actively looking for people to join Koules as partners - which raises a red flag. How deeply is the NHL involved in Tampa Bay Lightning finances? Are they effectively financing the team as they did for the Phoenix Coyotes for several months before their bankruptcy?
The fact that Tampa Bay cannot pay the loan used to initially purchase the team suggests that there are a deep financial problems and that Oren Koules is no longer financially capable to run the team. The NHL claims they have set a Feb 15th deadline to find new ownership for the Tampa Bay Lightning (it is assumed this means that they want the estate of Bill Davidson in Palace sports and Entertainment to take over the team on that date). Why does Palace Sports want the Lightning back anyway? That sounds like a fantasy deadline. Would you imagine new ownership (not named Jim Balsillie) to be in place in less than a month? NHL purchases rarely if ever get done that quickly - even in the strong financial markets.
The current ownership group of the Tampa Bay Lightning seems to have failed. They came in as bold-talking mavericks and have quickly been reduced to a group unable to run the team. I would be surprised if the NHL is not quietly running the team already. I would be surprised if anyone else is willing to step up to the plate as a potential owner to keep the team in Tampa Bay. This is a second market that will join Phoenix under NHL ownership (if it has not already) and that will bring considerable problems to the league. I doubt Oren Koules will exit the NHL in a silent understated manner as new ownership takes over. He did nothing else in that manner. If he doesn‘t, he will create considerable problems for the NHL.
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Tags: Len+Barrie, Oren+Koules, Tampa+Bay+Lightning,
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