Caution and excitement

Those were the two emotions of Palace Sports CEO Tom Wilson Wednesday after he announced Hollywood producer Oren Koules signed a purchase agreement to buy the team, the St. Pete Times Forum lease and 5.5 acres near the arena for $200-million.

Cautious because he has been here before, on Aug. 7, when Absolute Hockey Enterprises, of which Koules was part, signed a similar purchase agreement. Three months later, that sale imploded as Palace Sports nullified the sale because of a missed $5-million payment and Koules was sued by partners Jeff Sherrin and Doug MacLean.

Still, Wilson said, "It is a step.''

Sale bullet points:

*OK Hockey is headed by Koules but also includes his business partner at Evolution Entertainment, Mark Burg and, it is believed but never confirmed by Koules, a California banker named Russell Belinsky. There also, apparently, are some unnamed others.

* The purchase agreement has a 105-day window for Koules to secure his financing and get the NHL Board of Governors to approve the transfer of ownership. If it doesn't happen, Palace Sports can revisit the agreement.

* Wilson said Koules was talking to three banks about sharing the financial commitment. Wilson also said Koules and his investors put in more money than originally planned to help reduce the new loan. If you want to do some math, Koules lost what Street & Smith SportsBusiness Journal said was $110-million in financing when France's Societe Generale bank closed its U.S. sports lending business. Wilson said he likely needed less this time.

* Palace Sports will continue to be a minority owner in a sense because, Wilson said, it is lending Koules  some money to "give him some flexibility.'' Wilson said it is not as much as the $30-million Palace Sports was to lend Absolute Hockey. Wilson said Palace's stake in the team will go away quickly.

* Wilson said Koules will have a say in personnel matters but as the Feb. 26 trade deadline approaches, Palace Sports still will have the final say.

*Koules, as he has been throughout the process, was unavailable for comment other than the statement on the release. He did not return several e-mail messages. Perhaps he doesn't want to make the same mistake Palace Sports and Absolute Hockey made by being too high profile before all the ducks were in order.

One quote I liked on Koules from Lightning president Ron Campbell that didn't make it into the paper but might at some point:

"He is going to be some much fun. He could be a Mark Cuban type of guy from the standpoint that he's going to have a lot of crazy ideas, out of the box ideas. He's going to be very passionate and visible. If you're a fan, I think you've got to love that. There are a lot of people who may have some challenges or issues with Mark Cuban, but it's not the fans of Dallas. He's sitting there, 'This guy is behind our team 110 percent.' That's the type of energy he'll bring.''

Comments

[weezer]

This is why there are mutual funds. People don't understand economics or the marketplace. Koules is not poor but he doesn't have the wherewithal to come up with enough jack for a down payment to get the rest of the deal financed.

Folks talk about Koules' passion. Apparently the passion isn't enough to put up sufficient dough to get realistic financing. Ths deal is very iffy....does past performance mean anything to those that think this deal will really come off?

[Voice of the Turtle]

I wont argue how profitable Koules' has found the movie business to be. I just know that a heavy hitter and his pals putting up $100 million for a $200 million asset ought not need 105 days to find financing. If these guys are heavy hitters, it should take more like 105 hours, and no help would be needed from PSE along the way.

Sorry Randy, sound reasoning demands that I stand with jr, Bear, and Casper.

[Lisa]

Koules is also the producer of Two and a Half Men, which will make him a good constant chunk of cash. Prior to becoming a Hollywood producer, he made his millions as a trader (according to the biography done on him when the first group was buying the team). Add to that the fact that he has another producer and a banker as 2 of his other partners, and I would have to say that I think that they have the money to pull off the deal and give the team what it needs to succeed monetarily. We shall see what happens. But the thought of an owener who loves hockey and the team and wants them to win is very exciting. Hope it all works out in the timeframe they have laid out.

[ajax]

Saw domestic movie gross
saw I 55 mil
saw II 80
sawIII 87
Saw iv 63 mil
total domestic gross 285 million not exactly obie won material.
International gross of 176 million(original saw had no international release)
Total gross. (not profit) of saw franchise. 461 million
I wish I would of thought of it.

[Randy]

Jr. and Bear, so you have access to his bank account and investment numbers? You know how he invested the money he made from his various movies? You know what the other investors are worth? No. You have no idea. I would rather have an owner that will spend a large amount of his money on this team because he loves the game of hockey than a rich old man that could give a rat's *** about the team and if they win or lose.

[Lisa]

I am cautiously optimistic. I think if this deal gets done, the Lightning will have ownership that really cares and that will be working for a Cup, and not just for a tax write off.

He has other partners, including a banker and a second Hollywood producer, so I believe when the deal is completed (if it does happen), they will be able to put in the resources necessary to get the team on the right road.

I also am impressed with the fact that the man is persevering, even through many crazy circumstances. Can't blame him for getting out of the Absolute deal: when he first signed on, he was a minority partner, but by the end was expected to put in the majority of the money and have no say in the running of the team. Obviously, that is not acceptable for anyone, and he went out and worked hard to get this deal sorted out. He has been successful in so many things in his life (not having been born to money), and I really believe that he will be successful as the owner of the Tampa Bay Lightning. And that will be a good thing for the team and the fans.

[bear]

Jr nailed it.

Kicking the can down the road and falling back at the same time.

Guess Feasters big job will be what he has been paid to do by Palace for 3 years ..spin the sucker seasons ticket holders.

Big exciting changes coming ...or Vinny going.

You decide.

[jr]

Dude, randy, whoever you are....

You know nothing about Hollywood or finance. If those movies gross $750 million what do you think the NET is? A great return would be 20 percent and I doubt that it is that high. That's without repaying financing. That's without splitting with other partners. That's not counting what this guy has spent on his wife, his mistress, his Bel Air home or his vacation estate in Idaho.

Believe me, Cuban could buy and sell all of them 50 times over. You really shouldn't write a post like that with little or no knowledge.

[Not The Marlboro Man]

Jr., Those comments are right on again. I also thought it was funny to compare Koules to Cuban. Thats like compairing me to Foster Brooks, he's the drunk that I've always looked up to!

[Hockey Chic]

Randy no offense but that is what we heard the last time. I am hoping these guys have very deep pockets. I guess everyone is getting a little tired of the carrot in front of the horse thing.

I hope they do have financing and I hope that they do complete the deal and get it done very soon. We need to renegotiate some of the contracts and sign new prospective players and take care of our guys that we do not want to lose.

But this is Chic with the rosies on and in the real world I am not sure it is going to get done. Hope so but if past experience tells us anything this is going to be a long 105 days.

Go Bolts!!!

[Randy]

You people act like these guys are just some random guys off the street. These guys have money. Just the Saw movie series alone has grossed well over 750 million dollars. That isn't even counting the other movies he has done and the other investments he may have. I would rather have an owner like OK that cares about the team than a guy that is just using the team to offset some of his other gains.

[Hockey Chic]

I have always said I will leave the draft picks and the possible trade perspectives to the pros but I have to chime in on this one.

Enough all ready it. I am over the possible sale, the sale, the sale sale and whatever else the powers that be want to call it. I as a season ticket holder and fan am over the being played like a first choice draft pick.
You think they need to do something for the fans who have listened to and been jerked to and fro by Beckman, Koules, Campbell and his cast of cronies. I would say you think?

Just when the team starts to feel their way here we go again. Lets hope we are over the hurdles and they can say all they want about the sale or whatever the mgt wants to call it.

Lets concentrate on hockey fellas. It is what you get paid to do. Screw all other mumbo jumbo and know that you are one a few that are getting paid to play professional hockey.

So get out there and keep it simple and get a win at Philly. Forecheck, backcheck, crash the net, bug the crap out of that puck carrier, shoot,shoot, shoot and lets have some fun out there. And Vinny P for MVP way to tell torts baby..

Get er done.

Go Bolts!!

[jr]

Aha, so they haven't secured financing. They are no closer to consummating this deal than they were a month ago or last August for that matter. What's telling is that THERE ARE NO BONA FIDE BUYERS for the franchise. No group has steppe4d forward with enough of a down payment so that a financial institution can comfortably loan the balance.

This "process" as reporters gently call it, is sticking it to the fans and no one else. Incompetents get to keep their jobs, players will get paid hefty salaries for fielding a last place team, and the organization isn't making moves to improve it.

You have to laugh at the comparison with Mark Cuban who really has money. He has spent more on whores than Koules and his bunch have net worth. Anything from the lips of Campbell and Wilson can't be trusted. You know, "Fool me once, shame on you; fool me twice, shame on me." Well, this is the THIRD time. I'm glad Damian "liked" the quote. A good reporter has to be more circumspect and investigative.

[Casper]

"Fool me once, shame on you..."

[Voice of the Turtle]

If I am reading this right, should things work out with this sale, the deal is not going to be consummated until June, and then there must be approval of the transfer by the league which might delay matters further.

Should Koules pull this off and wish to make changes, there would be a very short fuse (if any fuse at all) allowing for any changes in management and coaching prior to the vital summer activities (the draft, free agent signings, post-season trades, etc.).

He would be well advised to line his ducks up in a row while waiting to secure financing. I hope he does not bleed all of his resources in making this deal. If so, he'd leave himself without sufficient working capital to support significant personnel moves, fully utilize the cap, and build a more viable minor league feeder system.

It is vital for him to turn to the right people for advice. Certainly, most of the posters to this site could advise him about who the wrong people would be.

Then again, as suggested by DC, this prospect of the Lightning sale might just be another laborious exercise in futility.

We are all getting well practiced in both waiting and experiencing frustration over this entire circus. We have heard from the clowns, but we wait to see if the show will really begin.