Palace negotiating only with Koules, for now

Lightning owner Palace Sports & Entertainment and prospective owner Oren Koules completed their face-to-face meeting today in Auburn Hills, Mich., and sent out a joint statement in which the company committed to negotiating exclusively with Koules, who heads OK Hockey, in an attempt to get a purchase agreement done by the end of January.

The statement was a clear message to the group of Tampa businesspeople led by attorneys Steve Burton and Tom Scarritt, that Koules, the Hollywood producer, and his group, which includes business partner Mark Burg and California banker Russell Belinsky is the primary candidate to buy the team. That is not to say Palace Sports wouldn't listen to the local group if negotiations with Koules fell apart, but for the time being, Koules is not only in the driver's seat but belted in.

In response, Scarritt said, his group discontinued the meetings it was holding on Wednesday with potential investors and called off additional meetings set for Thursday. In effect, Scarritt, said, their effort is, for now, dead in the water.

It is not believed Koules made an offer in Wednesday's meeting, rather the talks were broad and of generalities. It is the starting point of what still could be a long process. Even after a purchase agreement is signed, the league still must approve the sale and the sale has to close.

The announcement came as the group of local businesspeople held meetings in Tampa about possibly mustering an offer of their own. Also included in those meetings were Coral Springs real estate developer Jeff Sherrin and former NHL executive Doug MacLean. Both were part of Absolute Hockey Enterprises, which, along with Koules, failed in its bid to buy the team, the St. Pete Times Forum lease and 5.5 acres of land near the stadium for $200-million.

In a statement, Palace Sports said, “After very productive discussions today, we are pleased to announce that Palace Sports & Entertainment is entering into an exclusive negotiating period with OK Hockey, LLC, an entity controlled by Oren Koules.  We hope to move forward with a purchase agreement by late January. A subsequent update will be released at that time.”

Koules' statement was, “I am excited that we were able to take such a positive first step today. Most importantly, we established a clear and direct path so that we can now work together towards a definitive agreement as quickly as possible.”

Comments

[Nick]

Wonder if we'll see Vinny, Brad, or some of the other pretty boys in bloody, cameo deaths in an upcoming Saw movie? That would be a bit surreal.

[bear]

Gb the Wings empty seats are more the result of a brutal Michigan economy.

That may well hit here next year with the brutal construction/housing slump.

Bolts can't afford to be perceived as losers or the rink empty's.

[goldenbolt]

Bear, your point about no shows..... go to a game in Detroit..... 1/3 empty each night....... with probably the best team in the league for the moment point wise. The Bolts sell tickets - Suites are full at 350k a year (or there abouts). The addition of the XO has been money honey. Yes, lot's of no shows but it has always been that way until after the 1st of the year. Let's see what happens in January.
I've been to many nights with 3 - 6 k in the stands that is a problem.

If the team is bought (Koules) and he makes the commitment the stands will be full. He can make the numbers work if he is willing to spend up to the cap clear some room with the Denis waiver he could get a bit of what we need. I do not expect anything until next year. The "Saw" man wants to market the team..... and players.... No one will buy if the four amigos are not in place. Let's see what he brings to the table.

[bear]

Another Joe, many of those 18000-ahem 20,000 are there on promotional tickets, 2 for 1's, Half Price Tuesdays, Upper Bowl Madness etc.

There is also precious little corporate support. Thus Tampa is a revenue challenged team, near the bottom of the league in that critical department.

Losing big money already, at these attendence numbers, they can ill afford to rebuild. Feaster sure can't, he has to make the playoffs.

Its not in his or Torts best interests to trade Vinny or Marty- they have a vested interest not to. Quite the catch 22 for the teams future.

Keith, remember it was Rick Dudley who put most of that cup team together. He's doing the same for Chicago now.

The managements were not remotely the same. People have every right to criticize thes guys. Most have been extremely patient up to now.

[Chris]

What's the chances of all of these Californian backers (investment bankers) buying the team and moving it???

[keith]

I'll always be there too, Another Joe, but damn, do you remember the 90's? Kept trying to tell myself I was enjoying it!!!

[Another Joe]

And yet we still have anywhere from 18,000-20,000 people showing up a night. The team is a gem just waiting for a new owner. At least PS&E realizes its time to move on.

I wont stop showing up.

[Phil]

As a fan I just want WINS! I make an investment in the Team by purchasing tickets, parking, food, etc. When I buy this 'stock', i want results. When we don't get them, someone needs to be accountable. "We need to find a way" doesn't cut it at this point. If they can't find it, we need other players or management to try and correct the situation.

I believe that the ownership-transaction is restricting the moves that can be made. Regardless, we want to win. This isn't Boston, NY, or Ottawa... we need results to keep TBL fans in the stands.

Go Bolts!!!

[keith]

Its a good thing this soap opera is going on.....it takes a little heat off a hockey team that is struggling in every department, including, I believe off the ice too. As fans, do we really care who signs the checks? The same organization that won the cup is now demonized as incompetent. Does it really matter in the big picture.
Meantime Go Bolts, and good luck Ramo.
Lets hope the defensemen don't need those glass stomachs they've been using to see their way around the ice lately.

[Another Joe]

Whoever the new ownerhsip is i hope lets the bolts spend up to 2-3 million below whatever the cap is. You always want to leave room for moves during the year. If cap is 2 52 million next year the payroll need tos be 48-49 million. Build our team 2 Vinny4 and hopefully Ramo and we can have a good next few years! Get Ramo some experience now!

[Noticer Of Things]

First group: "Absolute Hockey"
Second group: "OK Hockey"
Current product on the ice: "Eh, Not So Good Hockey"

[weezer]

But instead of swords in a scabbard they'll be wearing saws in a toolbelt???

[Alabaster Cat]

I'd be very surprised if Palace Sports would give exclusive negotiating rights to any prospective buyer without a great deal of confidence in a successful outcome. The current Lightning ownership is also indicating very strong motivation to produce a workable contract though this gesture. In other words, Davidson really wants to sell this team (certainly, as quickly as possible).

The "Saw" series is a cash cow with more episodes in the long-term offing. Consider how many "Jason" movies were made and transpose this to prospects for Koules' Hollywood bonanza. So Oren will engage what is probably his greatest fantasy, and it does not seem probable that he is interested in only owning and earning. This guy will likely want to win as badly as we do.

In any case, I think we all sense that change is welcome. Perhaps, as in the movies, the cavalry is arriving in just the nick of time.

[JD]

This is good news because a) it's a new ownership group and b) Doug MacLean is not involved. It would have been too tempting for him to not get involved and prove once again that he doesn't know nearly as much about building a team as he thinks.

[Nan]

Well, one of the things on my Christmas wish list may actually come true - a new owner! Hey OK, if you can get the purchase through the NHL due process by the end of the season, then can you spend some serious dough on a few D-Men and a goalie for next year? Please, please, pretty please?

[Go Bolts!!]

Oren when is the soonest you can start making moves?? Our goaltending is awful and we have no depth...In case you haven't notice!! We need you ASAP!