Koules gets his financing

Hollywood producer Oren Koules, who has been trying to close a deal to buy the Lightning for four months, has some light at the end of the tunnel thanks to two helping hands that will provide $100-million in financing for the $200-million deal. 

Lightning president Ron Campbell said Monday that owner Palace Sports & Entertainment and Galatioto Sports Partners will share the financing Koules needs to make the deal work. Campbell would not go into specifics, but it is believed that Palace Sports and GSP, a sports investment bank in New York, will contribute half the sale price for the deal that includes the team, the St. Pete Times Forum lease and 5.5 nearby acres.

Final paperwork still must be signed but that is expected to happen relatively quickly.

That Koules apparently has raised 50 percent of the purchase price among his investors should smooth the NHL's approval process.

Campbell said the financing deal came about because of the worldwide credit crunch. Koules, who heads OK Hockey, had previously lost financing through Societe Generale, France's second-largest bank, which shut down its U.S. Sports lending business. It also recently saw a proposed deal with CIT Group fall through.

"To move the process along and make it as efficient as it can be and gain control of the process, (GSP) and Palace Sports stepped in and said, 'We'll finance it now until the credit markets get corrected,'' Campbell told the Times. "At such a time, and we'll be patient, (OK Hockey) will pay us back when they get traditional financing.''

It was unclear how the $100-million in financing would be split. Neither Koules nor Sal Galatioto, president of GSP, which has brokered the sale of the team since the days of Absolute Hockey Enterprises' lost deal, would comment.

The financial deal will not close until the NHL's Board of Governors gives its approval. Given the league's usual timetable of four-to-six weeks after financing is secured, the deal could be done by early June. That could be important as Koules certainly will want to take control of the team before the NHL draft, June 20-21 in Ottawa.

If things progress, it would be the end of a long saga to sell the team. Absolute Hockey's bid began in August and ended in November amidst investor wrangling. Koules, who was part of that group and is a former Western Hockey League star, put together OK Hockey with business partner Mark Burg, former NHLer and developer Len Barrie and California banker Russell Belinsky. He has had exclusive negotiating rights since late April.

We'll have more in Tuesday's paper.

   

Comments

[léo]

GP?
By good officiating, you mean like calling out the player who purposefully body-checked the Cap defender into Huey, which cost Cappers the series?
Better hope not.
We won't go for 9% on the PP against your boys. Philly isn't Boston. Philly won't and CAN'T play the Trap.
If you think your boys will HIT US into submission, (like "supposedly" Boston did) you're in for a surprise. A close look at the final stats shows Habs DOMINATING that column vs Bruins.
1st game is your ONE hope, GP. It'll be Philly's 3rd game in 4 nights. In Our minds, you will be exhausted; therefore We MUST win. In fact, Crushing Victory is want We want against Philly for 1st game. (Same as whole season, really...)
IF you win? Or make it tension-filled?
We'll think about it...
But if all goes the way Leo has foreseen (or "hopes", take your pick), Philly will get Spanked in 1st game. So much so, that you will come back in game 2 with the idea of following Boston's lead...and play the Trap...which you can't play cuz you've never done it and won't have time to adapt it to Us (but which Boston masters because it's their bread'n'butter). You will then lose game 2.
Back on home-ice, in a panic, you will see Flyers play a more gritty, determined game. Whether this tactic works or not (for 1 game) is beside the point. Our Strength is adaptation by transition. Our staff is the Real Deal and are far wilier than Philly's. But more importantly, you are on an inevitable collision-course with the Priceberg; forced to score, you will Open Up.
And then you're finished.
Philly must play to it's strength...which is cheating. THAT'S what I'm excited about: let's see'em cheat in the Mecca.
Let's get it on!
MTL in 5....maybe (cuz I'm nice) 6.
12 to 25
sff

[GP]

Thanks Leo.

I think both the series will be very good ones. I just hope we can get some consistent officiating.

Good luck.

[léo]

Congratulations GP!
C-ya Thursday!
sff

[boltflasher]

Good post Tackleberry...also, if this operation is losing money why would Koules cough up $100 million of his own money to obtain????

[léo]

Oh and Ajax?
I told you.
Paragraph it, mate and you'll never that again.
Breathe in - breathe out.
Now do Paint-a-fence.
P.

[léo]

Thanx Hockey Chic, Bear. Appreciate that alot.
It was a heart-attack signed the Priceberg until Marc Streit! (that's how We say his name, by punching! his last name like a german officer) sealed the deal.
Not only did We know We had won when he scored but the goal itself SHOWED US a more significant Event:
Marc Streit! has Arisen.
Plecanec, though he scored last game and made an excellent pass This game, eeeeeiiishh, We don't FEEL IT yet.
Markov still sleeps.
But if Marc Streit! starts "bringin' it"? Like We've seen ALL YEAR and like we saw in (where was it? 2 internationals ago?) when Marc Streit! SINGLE-HANDEDLY wiped out Team Canada for Swiss Victory 2 - 0 ?
Everything's gonna be juuuuust fine.
12 to 25
sff

[ajax]

And I thought my last post was short!!

[Hockey Chic]

I have to agree with you that without addiitonal D we are sunk. Boyle is Boyle and he cannot do it alone. There needs to be some solid guys back up our forwards. I for one do not think we need any other forwards.

As far as the goalie situation I liked the way it ended Smitty and Ramo working to get the starter position.

I am not happy with the way that the ownership thing worked out as far as PSE having to assist in the deal but hey guys times are bad and at least this is one monkey off our guys backs.

Oren if that was you have your peeps call my peeps and we can pencil in a meeeting and do lunch. lol

Seriously I really hope this finalization of the deal brings some closure. I am with the rest of the fans in stating we need to move on. I for one renewed as soon as I got the notice and that was before the end of the season.

Most of you know as I am a card carrying member of the so called pom pom squad and that I love this team and I believe in this team. Short comings and all you know why cause they got character and that says a great deal in todays society.

Oren I think if you want to fix it I agree get rid of lets play hockey. Work on getting new fans in stands and keeping the old ones.

There are many that feel like they have been treated like cast offs or red headed step children. When they took the thank you fans off center ice it was a smack in the face especially after the lock out.

Lets get fan friendly and make our city one of the best. I have a suggestion, "Lightning Nation," instead of Hockey Bay USA

ps Leo. This is my best stab at French as I recall it from the Centre` Bell Go La habitants. The team really looked good and I am sure you are nursing quite the Molson hang over. Go Habs..

Ajax you are wearing off on me with this run on stuff.

[ajax]

Hard to make any assumptions. Are these guys the perfect owners. No, everyone would agree. But as much as I am skeptical, hard to believe any group would pony up 100 million clams of their own money, if they didn't think there would be a good return on investment. They didn't make that kinda money being stupid (like me) You gotta believe one thing. They truly believe they can do a better job running the hockey team than the other guys. For me, except for Torts, we had no hockey guys in the whole upper management, including Mr. Jay. For now (oh that was hard to type) I believe this is the first step to bigger and better things. If nothing else Feaster and Torts will have to be accountable for the first time in a long long time. Somehow I don't think Torts will be bashing management to the papers more than exactly one time this year (he will be booted quickly if he does) Gang, one good thing, the dominoes will fall quickly (like the next 10-12 weeks) I believe as only a few do, If management doesn't make real changes and real commitments VL4 will be gone. If management spends big bucks I am all for retaining VL4. If payroll is same or less than last year, you gotta go for multiple assets versus "star" power. All the forwards in the world won't make us a winner without some D that can hold their own by themselves. I, personally, saw very little of that ability the past two years. Anyway if things continue I will be reupping for the 17th year in a row. Only the old owners would of kept me away, so for now things are going good.
In the last month we:
1. Dumped a huge contract
2. Dumped lame duck owners
let's add some more to that "good" list!!!

[Tackleberry]

Dont know if I trust what PSE is reporting about their losses. The Forum is the top grossing stadium in the US. There may be conflicting reports.

www.sptimes.com/2007/08/08/Lightning/Lightning_owners_know.shtml

The above article says "...$15.4-million gross income on 225,145 tickets sold." A lot of their revenue came from concerts and shows. Dont know what it will be for 2007/08.

It sounds like the Forum is in the black (overall) concerning operations with all the events (to include the Bolts).

With any overhaul, there will likely be some added expenses. Hypothetical: IF, Oren were to can Feaster, he would have to buy out his contract. Would that be worth the added expense? In my opinion, most definately.

I would hope over the next month, things will be clearer and calmer. Everyone has been on edge with the pending sale and the contracts with several players coming up. Understandibly so.

[Bear]

Charlie Foxtrot indeed David.

Your point about the payroll losses though can only worsen.
PSE had those losses during the so called "good times".
Given the nature of the local economy and the last place quality of the team, who for a moment doesn't see barrels of red ink down the road.

Lecavalier is going to bet his career on this mess?
Right

Cap minimum bottoms feeders here we come.

[Another Joe]

I dont believe for one minute the Bolts are loosing money!!!

[David]

This is not celebratory news.

The seller is lending the buyer money to purchase what the seller is selling. That isn't a sale, it's a partnership. The BOG should veto this charlie foxtrot.

If Koules doesn't have the pockets to buy this team how will he make payroll with an organization that is losing money? If what we hear for PSE is true about losing money yearly then the cash-flow of the operation will not pay the expenses. Billy D. up in Michigan had the pockets to keep paying, obviously OK does not. This is a multi-vehicle foggy I-4 wreck in the making. I'd close my eyes but the horror is too fascinating.

This is amateur hour. What has become of the NHL, turning down owners with cash in hand because they might move franchises and allowing abominations like this. I see two realistic options here.

1. NHL starts funding the Lightning like they had to do with the Penguins a few years ago.

2. Bettman calls up Jim Balsillie and apologizes and offers him the Lightning.

Or we may see #3 Tampa, which I consider the most viable Southeast franchise, fold due to mismanagement.

[joecool]

Koules could not get financing because of the credit crunch from the mortgage fallout not because he doesn't have money. There are people with 820 credit scores being turned down for second homes. Since the sale is going to be completed in June I would not expect any changes as far as scouting, front office personnel and coaching is concerned.

[pd]

Koules Gets Financing?
More crazy spin from the SP Times.
More like:Koules unable to get financing, PSE takes back mortgage.

Bad news here.suckering the fans yet again.

[bear]

My take is that all this shows is that Koules couldn't get financing anywhere so now he becomes what a minority/co owner? That's failure not a Bolt franchise advancing victory.

Who makes the decisions on Vinny? Where does the working capital come from?
Minimum cap?

Got to think that this was a last resort ..they are just kicking the can down the road out of the necessity of the NHL calendar.

Good win Leo.

[Tackleberry]

Oren,
I think that Boyle should stay. But, at the same time $5mil is a bit high. If he were offered $4mil would there be an issue?

My personal opinion is that the biggest hole in the team is with the D. Picard was a good pick-up. Ranger and Obrien have been stagnant lately.

With all that, do you still pick up Stamkos? Or, do you trade with LA, Atl, StL, NYI or Col for their top D-man and their 1st Rd pick EVEN-UP for Stamkos? With the trade you could pick up a top D-Man in the draft like Doughty, Bogosian, Myers, Schenn or Peitrangelo. This will really torque-off a lot of bloggers here. Since the opinions of the players is subjective.

Please dump that "lets play hockey".

If you are looking for ticket sales to improve here is an idea. Get a couple of the Ice-girls and a player to attend local schools. They could hand out a few tickets or merchandise for good grades, perfect attendance, good behavior, etc...

What's your plan for V4? I know you cant go into details. Please keep him. Some say trade him to get draft picks or multiple $2mil players that are good.

Also consider this: There is not 1 retired number for the Bolts. I know that "capt Dave" did not spend all his career with the bolts, but he did give so much with the years he spent with the bolts. If V4 stays till retirement, obvious choice there.

Need more of that fan appreciation stuff throughout the year. It looked like a huge PSE marketing scheme. It was nice, but it did'nt seem totally sincere.

What will be your plan for a "team-enforcer"? Will it be Roy? His game needs to improve, but he has heart and doesnt take any crap from the opposing players. Regardless, the bolts need an enforcer.

One last thing: Jay Feaster needs to go. A wise Marine once told me "people get promoted to their highest level of competency". Well, Jay got promoted one more time.

[Badbud]

"Buy Here, Pay Here"

It is just like the used cars on N.Florida ave,Don't miss a payment,Kenny,PSE will repo,your team.

[Voice of the Turtle]

I share the concerns expressed by several of the loyal bloggers concerning: 1) OK Hockey's inability to find approximately 50% of the financing without the help of Palace Sports; 2) the salary cap implications of diminutive working capital; and, 3) the availability of sufficient operating funds to run a first-class minor league program.

Many feel that it will also be imperative to dissolve contracts with various personnel in coaching, scouting, and/or administrative capacities. This too will require funding as buy-outs would accordingly be necessary. Then, of course, there is precious little time to put a good replacement crew in place in time for both the draft and the opening of the free agent market which loom right around the corner.

One might expect that Koules has been spread thin with his SAW movie production and marketing activities as well as his search for financing. Has he had the opportunity to plan the strategies and logistics of running a viable NHL franchise? One hopes that he is getting good advice because this ain't a movie set.

He'll need to get his ducks in a row, pronto...that is...if there isn't, in the offing, yet another situational breakdown in this progressively tiresome sitcom.

[Another Joe]

Im excited but this team needs at least a 48 million dollar payroll to compete. 44 million wont do it if the cap is 54 million. Keep it at a reasonable number and add on if the season is going well. 48 million can get us started in right direction.

[Hawkeye]

Let's not get all excited folks til they sign the contract. But, hopefully this is the beginning of the end of this mess and "Let's Play Hockey!" ;-)

[GP]

Oren,

I'll renew if you stop that stupid "Let's play hockey" at the beginning of the games.

[Lisa]

Oren, you would have to meet my salary requirements, but I would be happy to consider the offer :)

I keep reading that players would want to go to the bigger market teams to get better endorsement deals. I wonder if having a Hollywood producer as an owner could make them think they could get some big bucks with endorsements or even movie/tv roles.

Like someone said, if R2 can't make it on the ice, maybe he can do great in the Saw movie series, playing a giant psycho!

[Patrick]

Finally. Nothing positive was going to happen with ownership in limbo. Granted we don't know if new ownership will (or even be able to) write checks but at least they will be properly motivated to do something to improve our fortunes as opposed to just sitting around in a holding pattern as we've done for the past year.

I'll take the inherent problems with new ownership over a lame duck regime any day. Thanks for the cup guys... don't let the door hit ya where the good lord split ya (as rednecks around here say).

[léo]

Had we won in overtime or by a 1 goal margin, we would still be worried.
We NEEDED a Smack-down in Chinatown and that's what we got, but still,
Boston? Wow.
What heart; all hail Boston.
I don't think we'll go 8 - 0 against'em next year.
But now,
Go Philly!
Cuz we don't want NY. Only team not to get rattled in the series...
sff

[Nan]

Time will tell how much Koules will be spending after the contract has been finalized and approved. Let us hope that this does happen before the draft.
i agree with Lisa, signing Vinny should be an immediate concern of Koules if not done before he acquires the team. If Vinny walks, I agree that other players may think twice about coming here.

[ajax]

Lame duck owners were bad bad bad.
Time will tell on the new group, but everyone should know that this isn't automatically a great thing. If they try to run this on a shoestring budget, it won't be good news for our team, short or long term. Just got done watching Mont/Boston. That is a different type of hockey than I am use to watching. Montreal had more men in front of the net tonight than we had in 82 games. Their D consistently won puck battles time and time again. As much as I hate the Shabs I admire the way they are coached, good ole fashioned rockem sockem hockey, good for them.

[Lisa]

Troy, I think at this point, you don't have a choice but to hope for the new ownership. See what happened this past year with the ownership in flux? If things don't stablize with ownerhip and if the front office is not given a direction, then don't expect the team to be able to sign minor leaguers, let alone legitimate free agents to improve the team.

[troyB]

Do we as fans desire the current ownership whereby they are unwilling to improve the team despite having the resources to do so? Or do we desire OK Hockey who wants to improve the team but doesn't have the capital required to make it happen because they'll be so leveraged.

[Carl]

Great, let us get this behind us and onto rebuilding the team

[boltflasher]

Well, so much for those who doomed and gloomed this deal that it would never get financed...

[Lisa]

Lets hope this gets approved quickly so the team can go ahead with the business of hockey. I hope that he will have the ability to finance a payroll that is not at the cap floor but is in the middle or upper half of the range.

If he is able to get Vinny to sign a long term extension on July 1st, I think it would be a signal to the free agents out there that Vinny believes the team will be going in the right direction. If we don't see an extension for a while, I think that we won't be seeing any top or even middle of the road free agents coming our way.

I am waiting to see how things work out. By the way, is it Vinny's birthday today? If so (I think my daughter said it was his birthday today) then Happy Birthday, Vinny. Hope the pain meds you are getting are keeping you comfortable and that you can enjoy this day.