Bettman says Lightning sale on track

NHL commissioner Gary Bettman told reporters after Tuesday's Board of Governors meeting that the sale of the Lightning, as well as the Predators, is "on track,'' but made it clear that if an ownership change for Tampa Bay from Palace Sports & Entertainment to Absolute Hockey Enterprises is going to be done, it will be done at the late November Governors meeting in Pebble Beach, Calif., or sooner depending on how soon the "due diligence,'' meaning the application process, is completed.

"There is no magic about the (next) meeting,'' Bettman said. "But I would imagine if they are going to get done, they both would be done by at least then if not at those (executive committee meetings).''

Absolute Hockey, which consists of Hollywood producers Oren Koules and Mark Burg, former Blue Jackets president Doug MacLean and Coral Springs real estate developer Jeff Sherrin, and perhaps two or three unnamed investors, have put down what is believed to be a $5-million deposit on a $200-million bid for the team, the St. Pete Times Forum lease and 5.5 adjacent acres.

The purchase agreement says if the sale is not closed by Dec. 30, Palace Sports and Absolute Hockey can squash the deal or extend the deadline. If the deal is squashed, Absolute Hockey could lose the $5-million deposit.

Before the transfer of ownership can be considered by the Board of Governors, a seven-part application that is hundreds of pages long and contains financing and background information must be completed. Bettman said that has not been done. When that is completed, the group must be interviewed by the league's executive committee. If the process goes quickly, Bettman can call for an immediate vote by fax. Otherwise the vote will be taken at the late Novemberr meeting of the full Board.

"We are not at a stage where they can be considered,'' Bettman said about both sales, "but they both seem to be on track.''

My two cents: If the transfer of ownership is approved, it will make things very interesting depending on how Tampa Bay's season is going at the time. MacLean said coach John Tortorella and GM Jay Feaster's jobs are safe. We will see how patient the propsective new owners will be if things aren't going well.

Comments

[kronos]

Some of you need to be careful for what you wish for.

I can't imagine criticizing an owner for a hands-off approach. Who cares if Davidson doesn't know a hockey puck from a door stop? He hired good people and let them to their thing. The result was a Stanley Cup in Tampa and a perennial contender. How many of hockey's Original Six have been contenders for the past 5-6 years? One (hint: Davidson's hometown).

Now you want Doug MacLean--a proven failure and meddler. Under his leadership, the Jacket's record was an unimpressive 172-258-62 and they never made the play-offs. He was abrasive as a head coach and in the front office. A cancer for sure.

And a full-scale investigation ought to be launched into this guy Sherrin, his land deals, and financial wherewithal. The SPT ought to be ashamed of that fluff piece about him. There's a reason he doesn't want to be in the spotlight.

I predict all this will be academic anyway because the prospective ownership group will pull out. They are frantically seeking deep pocket partners as you read this.

[Boltsplus]

Hey Phantom, do you want to get information with pictures and cartoons instead of words? I guess "links" would make everything more credible to a cretin with an aversion to reading and a love of shorthand. I'm surprised you use a computer instead of crayons.

Where did you get Iraq, dude? You on pills?

[Phantom]

Yeah, OK. Perhaps we may dodge a bullet from a meddling MacLean.
Ambivilence personified.

I appreciate objectivity, perhaps a link to the Columbus mullet wrapper would be better?

Whilst we're straying off topic, lets leave Iraq out of it, OK?

Thoughts on thread keywords:
Bettman---$**t-can him.
Sale of the team---Gov. Crist, bring Powerball to Florida.

Geez...

Go Bolts!

Bang bang on JJ

The Times can't report this story because it would gasp, accurately reflect the sad state of real estate in the great state of Florida. The NAR hates that.

Real estate over evaluations were Kool aid for over two years. Some of the "accredited self proclaimed experts" should turn their badges in.

There is no extra juice in the deal beyond the franchise which after the big three isnt so hot.

[myles]

Wow!!! Suspicions confirmed. Nice job, jj.

So much for Joe and lightning rod, the real estate appraiser who doesn't know his fanny from third base. Gee, wasn't it inflated appraisals that got the real estate market into trouble in the first place?? (They are still doing this by the way).

Look forward to more as this bombshell unfolds. I guess we can't expect to hear it from the SPT, TT, or Tampa Bay Business Journal.

[SarasotaBill1]

I'd love to comment but CNBC just isn't programed into my remote as a favorite channel and that obviously leaves me in the dark. I quit watching when I kept hearing year old news being dramatized by people who haven't had an original thought in 5 years. I can assure you there isn't one swinging $!@* in that studio who understands even basic property evaluation.

What the hell was this subject?

Oh, the deal is on track.

Good for both sides. Let's see if it closes.

[myles]

The media has reported Davidson with health problems. Your posts show you are a basher of Davidson, thbe only one of five Lightning owners to capture a cup---or even come close. You are myopic if you think
MacLean's group is an improvement. It is obvious to everyone but you and Lightning Bolt that the potential ownership group lacks the resources to consummate the deal and is looking for more partners.

[Joe]

Although elderly and, according to Agatha, in poor health, we read that Bill Davidson attends most Piston games with his young and very attractive wife. Also, he is reported by Forbes magazine to be one of the richest men in America. If he is reading this (and, I could not be more certain that he is not), he might benefit greatly from Agatha's economic analysis and financial advice.

Incidentally, though some of Agatha's comments leave me scratching my head, I'd hire her or Ronald McDonald over Tom Wilson any day of the week and twice on Sundays.

[mbab]

wow...this is a "deep" group of bloggers we have here....it took me about 10 minutes to read all the world views on economy and credit etc etc...i will try to make my views brief and clear to a 2nd grader.....if you are going to own a pro franchise...especially a NHL franchise....you better have deep pockets.....or you will probably be deeply dissappointed....as will the city and their fans.....unless you have deep pockets..... and you don't need a degree from Harvard to know that.....all the rest is nice fodder but doesn't really mean much to the average hockey fan......like me

[myles]

You are naive and narcissistic so the sarcasm rings hollow. You have so many misstatements I wouldn't know where to start. Commercial paper is bundled. Pre-approval and pre-qualifying mean nothing. That's why the real estate market is a mess. With your naivete and being part of the real estate profession, I'm sure you contributed to it.

[Lightning rod]

Ag, Ag again, & Ag 1 more time. I have to say it, you are ever so correct; and you have rightly put me in my place. I, also, want to thank you for setting me straight, and giving me insight that I never had before. In fact, I expect to save and potentially make a great deal of money, based on your direct input, broad understanding, and keen insight.

You see, I am a appraiser with just 23 years of experience in the RE market; and it's obvious now that I haven't learned a thing during that time. Studying and understanding economic markets & trends, apparently has just been a waste of my time and money. Getting my professional designation, another complete waste. Why should I continue doing all of that, as you say there's CNBC. Today, I am going to go my office and arrange to do away with all of my costly data sources, sales research sources, etc.; and fire the appraisers and staff that I have working for me. No, that's to harsh and unfair. I'll just lay them off, so they can get unemployment, since most of them have been with me for 10 to 20 years. On the up-side, I can work out of my house, as it has cable; or downsize my office space, as I will just need to buy a HDTV & get a cable hook-up. That will be cheaper than keeping my recently upgraded computer network; and the company next door recycles that stuff anyway. Boy, there are silver linings everywhere. I'll keep the phone system, so I can call my clients, and the "local cheerleading fishwrappers", so I can tell them to BUY GOLD NOW!! They can just wire my fee to my bank; or better yet, I'll just go by and pick-up a gold bar/coin or two. How easy can it get? I have been blind and working to many hours, for to long.

I, also, have to start to calling my clients. I need to inform them that all the market data, sales & contracts, rental rates, room rates, etc. that I have researched and confirmed are in fact wrong; and they can't rely on the values of their existing properties or proposed projects. There are in fact no RE loans to be had. They should immediately stop their plans to buy or develop any real estate. It is really going to be a busy couple of weeks, with the phone to my ear, as I'll have a lot of explaining to do. I'll need to check, if my E & O insurance current, before making those calls. I guess that I can handle it, and my calendar after that is going to be wide open. NO NO that's wrong, I will be sending long hours watching CNBC, taking notes, planning, giving new information to my clients, and probably more. Hm, I'm I starting to see a learning curve here. I wonder, maybe I need to keep a secretary.

By the way, there is one thing that you may want to check on. Commercial loans are not bundled, like residential loans. When commercial loans are sold in bulk (50 7-11's, pizza hut's, Walgreens, etc.), it is as a portfolio to Wall Street, pension funds, and/or insurance companies; and these properties have a defined income stream to back-up the value and re-pay the loan. I just thought you should know, but you might want to check on it. Again, I could be incorrect. Let me know, would you.

I made a few calls, and you are again correct that sellers never check on a buyers ability to close, as you say they just take the highest offer. The bank will check it out for you, due-diligence and all that. Prequalification of a buyer, and letters from banks stating the past history and currently ability to close on a purchase, are unheard of. No one checks on a buyer's bone-a-fides, they just let their property be tied up by a contract, for months or years, while someone else figures it out.

I wouldn't dare bet against you, you and others are undoubtedly right, that Mr. Wilson would never have these buyers checked out, along with their ability to close. He and his MBA, and the fact that he is running a billion dollar outfit, make it highly unlikely. If these buyers don't have the money to start out with, I am quite sure he and Mr. Davidson will not mind being completely embarrassed and become laughing stocks, like Phil Esposito and the English "nobleman". Also, it doesn't make good business sense to have these guys checked out, before they sign the contract and publicly announce the sale, especially by a guy that runs and is responsible for such a large parent organization.

Aggie "The local cheering fishwrappers" that's funny. You must be talking about the Herald, bought and paid for by the NAR and Tourist bureau. Nothing to see here..move on

There is only one way the Bolts last more than two more years here and that is to have an owner with very deep pockets.

Jim Balsillie could buy the team with cash but would move it to Canada. Bettman won't allow it.

This is not the cup team and in this financial environment start expecting the empty seats.

Getting off to a bad start will be deadly for attendence so I just don't understand why someone didn't pay for a real goalie short term

[aggie 1 more time]

Well we have a lot of common ground, gb. CNBC has their share of shills (yet one can learn much more than from local rags) and all I have invested is in gold and energy right now. And yes, the Fed bailed out Wall Street, not Main Street.

I do not believe for a nanosecond--and you shouldn't either--that were ANY comparable bids by anyone with bona fides. The MacLean group submitted the highest bid (if there were any competing bids at all) and Davidson sold. It's like you or me selling real estate. We'll take the highest offer, the would-be buyer puts down an earnest money deposit, and we hope they get the financing. We don't do the background check; the lender does. Our realtor is comparable to the firm that shopped the Lightning--they just want their cut and let the bank or lending authority do the due diligence.

With all that said, I am certain that this group, $$$ or not, would not serve the Lightning well unless you want to see Jay and Torts replaced. I don't.

[goldenbolt]

Aggie - Oh, please I laugh at the pimps on CNBC and hold nothing but commodities in the portfolio to ensure what is needed going forward. When the FED bails out the super rich and the party of compassion pulls the rug on those unable to collect the .10 on the dollar being offered for their homes from the Katrina debacle I have absolutely no sympathy. There are a lot of idiots out there who think the 'economy is in great shape' including the bald headed eagle and his idiot companion championing another inflationary spike like the one started by their resigned hero tricky dicky.
Yes there is a downturn in the markets, Hotel, travel, consumption, super inflation deflating value of the dollar but although that may play into the price of the team the fact remains, I do not see someone with the caching in this group. Property value's are not blowing out the top rather they are headed south see HOV and other home builders taking 20% - 30 % of the price of their homes. That is implosion of the real estate market all owners who bought previously are now upside down in their loans. How long does it take for this ownership group to be upside down? Do they have the $$$$$$ required to hang in their till we find the other side of the curve somewhere down the line.

Ok, enough on the economy - bottom line who has the money. Due Diligence is great however there are assumptions made and once the books are opened often the diligence really comes due.
An ailing man is looking to unload a commercial product at a profit at or near the peak of value. This is family planning..... We are all hockey fans wanting only the best for the team and 'our' franchise. (or so we think anyway - lol). This is a game for the super rich, there are many who wish to be seen in that position but most once under the magnifying glass come up a bit shy.

Great result last night - Go Bolts

[aggie again]

You are incorrect lightning rod. All the loan markets are in trouble, not just the housing one which caused the problem. Loans are bundled and sold and they include prime, subprime, commercial, single family, etc. Watch CNBC instead of the local cheerleading fishwrappers and learn something. Mergers and acquisitions have ground to a standstill. The commercial paper market is reeling. Lenders are not looking to make deals, especially risky ones, when they have so many shaky loans to clean up now.

A five year cash flow is a best case scenario no matter how you slice it. It will take 1-1 1/2 years for the architectural/permitting process if they started on the project tomorrow. And what sector suffers most in a recession? Hotel and travel.

The fact that you are "surprised" the $5 million is "that much" tells me that you are unaware of the changes occurring in the marketplace. As for Wilson's acumen, we don't know who else (if anybody) expressed interest in ownership. Frankly, I doubt that anyone did.

I'm not going to defend Davidson. This is an unsophisticated sports town if it carps on an owner (who is elderly and in poor health) whose team won the championship and embraces the likes of Sternberg whose team has absolutely no hope of ever winning a championship as long as he is at the helm.

[goldenbolt]

MBAB - That's a wrap summarized perfectly. AMEN - Show me the MONEY.

[mbab]

i love all the responses....will summarize for all......pro sports ownership is for the ultra rich....if our owners do not fit that description......weez all in trouble.....end of story...

[Joe]

A few more things Agatha:

Bill Davidson doesn't care about the Lightning (he doesn't even attend their games in Detroit against the Redwings), and insiders have reported that he has been trying to find a buyer for the team since they shocked him by winning the Stanley Cup.

Tom Wilson has been called out by the intrepid John Tortorella (this has been reported in the St. Pete Times), and, although he has kept his yap shut, smart money says that Jay Feaster would most dearly love to put some well-placed dents in Wilson's meddling derriere.

Wilson and Davidson had as much to do with the winning of the cup as Ronald McDonald has to do with making hamburgers.

Agatha, Davidson does not like hockey and he wants to sell this team. What else do you need to know?

[Joe]

Agatha:

Bill Davidson wouldn't know the difference between a hockey puck and a devious empty suit. I am so sick of this billionaire's fretful tears about losing a few million bucks a year (AND, I do not believe that to be acurate). If this franchise is to enjoy any further meaningful success, it will be under the leadership of people who know about and care about hockey.

Perhaps the MacLean group is not the best one might hope for, but, presently, it surely looks like a big improvement from my perspective.

[Richie]

I think the Absolute Vddka comment "hits the nail on the head". I agree - Bettman needs to go - sooner that later.

[Lightning rod]

In a deal like this, a $5m deposit is not unusual. In fact, I am surprised it's that much. I been involved in deals with less of a deposit ratio. It's just an amount, which at some point goes "hard" that all. It's likely that at that point an additional deposit will be required. Also, this type of transaction is not like buying a house; and they are not dealing with a bank or a mortgage broker. They are dealing with investment bankers, out of New York, through the sports consulting group the Lightning hired last year and Sherrin contacted to see if they could buy the team. There is no credit crunch in the commercial RE market, nor for a deal like this. As for 5 years to wait to develop the 5.5 acres, all you have to look at is the hotel market, which is just fine.

Let's see, I think it's Mr. Wilson who is running Davidson's organization. He's a MBA bean counter from the get go. Does anyone out there really think that he would allow a contract for the Lightning to be put in place without checking on who these guys are, and if they can pay for it? Come on guys, Wilson runs a BILLION dollar set of companies; and the one thing that you cannot call him is stupid. Why do you think that the deal took so long to be put in place, and the secrecy until the announcement?

I await your comments, and above all the rumors and speculation.

[agatha]

Another point: Despite the Fed's action yesterday, banks are tightening up requirements on new loans. Lowering the discount rate will help with liquidity on current suspect/subprime loans. Bridge loans, which is what this deal most appropriately qualifies for, have dried up. The real estate guy is in because it's a land development deal more than a hockey deal but in the current market, he'll have to wait quite a while (minimum 5 years) before seeing any cash flow let alone a profit. And remember, although the movie guy's films grossed a few hundred million---he's worth nowhere near that. MaClean is a pauper and front man.

Also please note Damian's article: the group "could" lose the 5 mil. In other words, it isn't automatically forfeited. I guess they would lose the dough if they aren't acting in good faith and that would be tough to prove.

[goldenbolt]

If you look at all the buyers of sport teams they all have something in common... BIG BUCKS and it is known upfront. Yes, RealEstate can bring bundles of cash or the equivalent paper just like the fed print the money it's free and we pay for it later. However, with that said I don't see anyone one to date who has the ongoing caching. We know for a fact that Davidson can afford to lose 10 mil a year, the paper mil that is. Where are the pockets to account for that type of loss in this group? Also, Davidson paid 90mil not 200mil at 5% interest (example please) the cost is 5 mil a year more than the current group. That's a big nut to buy a team and make up with a franchise that is losing money to date. Sport ownership is a hobby for the Ultra Rich - who is of that ilk here? Movie man 1 and 2? Mr. Clean? or the real estate man? Or is there an undisclosed member - Tony Soprano hiding in the corner?

[agatha]

Joe, why would you hope that this questionable ownership "sails" if you're a true Bolts fan? MacLean is a proven front office flop. Whether they eventually scrape up the dough or not, the group has a major credibility problem (so does Bettman as you succinctly point out). Believe me, MacLean would have run Jay and Torts out of the picture. People can criticize them all they want, but Dadvidson-Feaster-Torts did what was necessary to bring the Cup here.

[Hawkeye]

They don't have to have all the money up front, just be able to get the financing for the loan. I sure wouldn't want to put up $5 mill for nothing (if it's non-refundable).

[Joe]

Fire Bettman already! the guy is an idiot and is running this league into the ground.

http://www.FireBettman.com

[bear]

Well now that the cat's out , I couldn't agree more with the whole group.

Maybe 5 mill is all they asked for upfront but I'm reading too many stories about guys that aren't really in or have no money for a hobby.

[Joe]

While hoping that this sale sails, my instincts are awash with questions and skepticism. Bettman, a clever and often deceptive lawyer/commissioner, is again very carefully measuring his words. Therein is a warning sign if I ever saw one.

Wiggy, Goldenbolt, and mbab all seem to think that there are some missing pieces to this puzzle. Every indication that I have seen suggests that they are right. I wonder what our capable friend, Damian, is up to in covering this story whilst uncovering the vital facts involved.

[mbab]

i was always taught to try and put the shoe on the other foot....i have asked on this blog from the momemt this hit.....does anyone out their know if they have deep pockets....from day one....that said....flipping it around.....super rich guys can afford to kiss 5 mil away....if they are so tight for money i do not think they would be gambling it or x-issing it away.....it would cost them a million in legal fees to recoup it.....more to this story as charlie chan would say.....that is something i would like to ask the times or the trib....why isn't there a deep inside story being written on this group....sounds like we could have the makings of one of those big huge st. pete times headlines.....

[goldenbolt]

The 5 mil is not refundable. But i have wondered out loud myself about where is the money in this group. Ok, one gut made a few humdred million on some movies, another has some real estate. Third guy has a mouth and lots of smack. No money. Unless someone shows up with some real caching they are not viable. The real estate guy is the only one who might have money but I don't think it's enough.
Da Bolt's

[wiggy]

"a $5-million deposit on a $200-million bid"

I can do that. This group will not be the new owners of the Lightning. You heard it here first, not from the lazy, moribund local media who have failed to investigate the wherewithal of the alleged consortium. All they have come up with are feature articles about the "principals." This is actually good news for the Lightning because MacLean would be a total disaster with his meddling.

Absolut Vodka has a better chance of owning the Lightning than Absolute Hockey.