Sale specifics emerge

In the end, the deal that everyone hopes finally will end the long, torturous saga of the sale of the Lightning, was one of necessity. With the global credit crisis making it difficult to nail down financing (Hollywood producer Oren Koules and his OK Hockey group lost two potential financing deals), Lightning owner Palace Sports & Entertainment decided to team with Galatioto Sports Partners, a New York sports investment bank whose president, Sal Galatioto, was trying to broker the sale of the team for Palace Sports.

Nobody is talking publicly about the details, but a few still emerged Tuesday. The complete story will be in Wednesday's paper, but here are a few highlights:

OK Hockey apparently has raised $100-million of the $200-million purchase price for the team, the St. Pete Times Forum lease and 5.5 acres near the stadium. Galatioto Sports Partners has agreed to add slightly less than $50-million. Palace Sports will hold an interest-bearing note for the rest.

OK Hockey would be responsible to pay the interest on the note.

Palace Sports would get $150-million up front (the $100-million from OK Hockey and about $50-million from GSP) and wait for GSP to find financing for OK Hockey to pay off the note. If the credit market does not thaw, in a worst-case scenario, though highly unlikely, Palace Sports could foreclose and return as owner with $150-million in its pocket as it tries to find another buyer. That certainly would help the bottom line given Palace Sports bought the team in the summer of 1999 for about $100-million and claims another $80-million in losses. More likely, though, it would extend the agreement and wait for the market to thaw.

Like I said, a more detailed version of this will run in tomorrow's paper. But thought the basics were interesting.

 

Comments

[boltflasher]

So who's in charge now?....and to Oren Koules, "Welcome!!!"

[shane]

I held my lap top up to the window to decode the message above, and Nero Selouk, is actually OREN KOULES backwards!!! AGHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!!!!

[GP]

Shane,

I guess there goes the assertion that mohawks make you smarter ... lol.

[jim from nj]

"Nero": if u build it we will come. If not prepare to lose

[Casper]

Mohawks.
Dag nabbit, that's the one place I can't grow hair! Guess I'll resign to staying stupido. Hey, can they transplant croppage from the ear lobe to up top? :-)

Ok, OK (like that dipstick would actually post here, and with this profound insight! His minors club wouldn't be in the dumper.); you could't find one of Davidson's granddaughters to marry? (Or grandson, if that's your swish.)

I have a tumbling tummy over all this murky jive.

Five years down the road, I better not be rooting for the El Stinko's after they're the only NHL club in-state and move to Orlando.

[Badbud]

WAY before 5 year. Ken Koules will be a memeory 3-4 years,( A bad one at that) they will get to do this again. Can you say Hollywood,special effects.

[olin]

...Nero- I anxiously await to hear your plan...

[PD]

See ya Vinny..it's been a slice.

[matt]

Nice, now the Hollywood man can get Vinny all wrapped up and start a promising off-season for the 1st time in a while. This guy will have Vinny in movies by his 2nd year of owning the team. It is called marketing. He'll stick TB Lightning shi# all over his movies once he is allowed. He'll be putting players in movies so they can gain more exposer so the team will garner more exposer. Hell the next "Saw" movie should have a gaget that involves a hockey skate with the TB logo on it. This is a great thing for the Bolts and a big reason why Vinny won't go anywhere.

[Bear]

Right on Matt but only if V4 is an idiot. No signs of that.

He will be requesting a trade shortly.

[matt]

Bear,

Why would he(Vinny) be requesting a trade? Anybody else have a opinion on this matter?

In my opinion, trading the face of the franchise for the last decade would be the biggest mistake a new owner could do.

[bear]

Matt, please.

[matt]

Bear,
That's it.... "Please"

I was trying to ask you a question and you assume I should just understand the logic on trading one of the top 3 players in the game? Or why he would "request a trade". I say to you, Please.....

[Badbud]

How about he wants to play for a Winning team ,before his skills start to decline.

[Stacey]

Tell me why Vinny always says he wants to be here then? Why would you say that if you didn't? Wouldn't you just say nothing at all then? I believe this team will get better. It may not be perfect this coming season but I believe the right changes will be made and we will get better. I don't think Vinny's going to be sqaundering his skills if he stays here.

[Another Joe]

This is no different then getting the money from a bank other then its from PS&E. To owe 100 million on something worth 200 million puts the new owners in pretty good shape.

Not to say im an expert but I have some family members in high level banking and theyve said this kinda of deal is probably a little better then a bank because the interest probably is almost nothing.

[PD]

Levereged to the hilt=penny pinching, bottom of the cap type team.

Lost 20 million before crashing to the basement of the worst division,before the economy tanked and before they raised ticket prices.

Which UFA will that attract?

Probably what the blooger means

[shane]

Mohawks = no need to get haircuts anymore. Because all you need it a beard trimmer and the ability to cut in a straight line. With a staff and team of more than 50 people, with each hair cut costing about $15, that's like, $4Million dollars we would save just by getting hair cuts alone.

NERO SELUOK SELUR!

[Paul]

Everyone keeps focusing on the money need to buy the team. How about Operating funds? What kind of a Budget will Jay Feaster have? I believe the Operating Budget issue is more important than the financing issue. What good is it to buy the team if you can't afford to support the Operation.

[Paul]

Everyone keeps focusing on the money need to buy the team. How about Operating funds? What kind of a Budget will Jay Feaster have? I believe the Operating Budget issue is more important than the financing issue. What good is it to buy the team if you can't afford to support the Operation.

[Hockey Chic]

Hello fello bloggers,

I agree that the entire management team has their hands tied unless an operating budget is established. Accounting 101 folks. Got have money to spend it. Hopefully Mr. Koules will release that soon so Feaster and Torts can start working on next season.

Then they can start with the signing of Vinny 4 to a long term deal. Making it right with capt dave and retiring his number to mention a few other ideas that have been knocked around on this blog.

Oh and Mr Koules want to do something really neat bring Espo back into the fole. He started this and I am sure he has some great ideas. As well although the lightning are not the original 6 they do have 15 years experience and veterans to boot. We need to draw on that...

Go Bolts.. What do you think Lisa, Ajax, Bear , JR, Leo and the others ...

Koules sit's in his office ,and has to decide on making a payment to PS&E or a paying a player,what does he do????

This is a Good deal for PS&E and not so good for anyone else.

It will not look so good for free agents. to unstable with lots of uncertainty.

It just looks like a very strange deal.

[boltflasher]

Wow, some en-lightening (no pun, intended) poop direct from the horses' mouth on Tortorella and upper managment per Steve Deumig today. Deumig says he spoke directly with Torts on the phone regarding Andre Roy, and, yes, Andre is through as a Bolt player. When MSL and V4 went to coach to ask for reinstatement, it was not for him (Roy) to be taking the ice but to be reinstated in the NHL so he could continue his career due to some off-ice stuff as well as on-ice things and V4 and MSL were aware that did not mean Roy was ever going to skate with the Bolts again. Also, per Deumig, with the new owner coming in, there is apparently some CYA going on over at Lightning offices. Koules will apparently be a visible very hands-on owner and has already clashed with Tortarella who was going to resign but was talked out of it by other coaches and the team's top players (yes, those same players that some bloggers and naysayers say will leave the team) who want to stay with the team and want Torts to stay also. Apparently no one in Lightning management tried to talk Torts out of resigning, only players and coaches did. It remains to be seen what will happen when Koules takes over in June...

[boltflasher]

Also, per Deumig there seems to be some disagreements between coaches and current (not the incoming) management over the abilities of Shane O'Brien...

[léo]

Sorry Hockey-Chic,
While I find all your points interesting, my knowledge and motivations regarding Tampa Bay ownership and management are limited at best.
It's not for me to affirm or infirm anything on those subjects because this is Your team, not mine. That's too personal for me. I mean, I know what your house looks like and can recognize every aspect of it from the street, but I have no idea what color your shower-curtains are. Does that analogy fit?
I talk CH. I talk N-E Division and Eastern Conf. I talk Hockey. I talk Rules and Regulations, foreseeing imponderables, spectographic momemtum analysis of teams and players, strengths and weaknesses, and recognizing dramatic probabilities of Victory when We see it.
I don't know Warren Cools, never 'eard of'im, "Saw" or not seen. Don't know what 'e's up to; don't know enough of team's situation to offer an OPINION about it. Can't even say fersure what Vinny will do because I don't FEEL his presence in your city the way YOU do.
Sorry.
But we can talk about the Habs if you want!!!
Peace.
sff

[Badbud]

Why???? They going to burn some more police car's?????

[Hockey Chic]

Sorry leo it seems like we talk so much you are one of us. I knwo you know the habs and must nbe very happy indeed.

I will tell you this should I make it up there again I will call and we can have a frosty molson when I hit town.

I loved the shower curtain analogy. Here is toasting a long term deal with vinny..

Good luck in the rest of the playoffs. I know the bell centre was rocking the other night.

[jlo]

Sheesh - let's hope some insurance salesman with zero hockey knowledge doesn't outbid this group in the 11th hour :>

Been there, done that.

[ajax]

Nothing will amaze me more than Torts making it thru the season. He was able to run roughshod over everyone and everything because of the "sale".
New owners will not be so tolerent of his bashings to the press, and somehow I don't see Johnny toning down for anyone. He seems to be on a self made collision course with unemployment. I think back about his comment, If they don't like it they can get me the heck out of here cause I am not changing. I think they might take him up on his rant. When I think back about the last year or so and how many run ins he has had with players and management and press I really think he is sort of self destructive. If nothing else he seems to have withdrawn to the world of John. (Me versus the world, and I will win!!!)

[Lisa]

I have repeatedly said that before making any moves, Koules needs to talk to the core group of players that he wants to keep (and that better include Vinny and Marty). If they want Tortorella to stay on as coach, then he needs to make arrangements for Tortorella to stay on as coach. They know better than anyone what is going on in the locker room and what the pros and cons of his coaching methods may be.

I have always said, same as Stacey, that if Vinny did not want to stay here, he would not have been giving interviews saying that this is where he wants to stay (and he repeated this in multiple interviews this spring). If he was planning on asking for a trade or wasn't sure what he wanted, he would have just stayed quiet. He has nothing to gain from saying he wants to stay if he actually wants to move on.

None of us knows what kind of operating budget Koules will have. And making assumptions that he won't have the funds to run the team because he was not able to get outside financing really isn't logical: in this current credit crunch and banking crisis, you can't assume that if he didn't get the funds that means that he doesn't have the money necessary for running the team. The loan from the current regime is in no way worse than a loan from the bank would be: he has to make payments either way.

And lastly, isn't it interesting that when the Canadiens were purchased, their owner had to take out a loan from the previous owners as well? It seems to have worked out for them.

The St. Pete Times Forum brings in more money than any other arena in the US. So even if the Lighting themselves are losing money, don't believe that the whole operation is losing money.

[léo]

Badbud, Ouch! That hurt. It's too bad that some hooligans, who know nothing about Our sport and who are cowards, the lot of them, use a festive event to act like morons and make the rest of us look bad. On behalf of all Montrealers, I am ashamed and I apologize for that behaviour, which We do not condone.
Hockey Chic, you're on!
Lisa, are you saying that George Gillette took out a loan from Molson? Wow. Honestly, I didn't know that. George Gillette? Thought he was richer than Jebus. But all in all, if it's true, I gotta say,
Cool.
12 to 25.
C'mon gang, you don't want the Flyers to advance, do you? It's gotta be us. You're more than welcome to Join.
You always are.
Peace.
sff

[bingo]

Leo, yes that is what was reported recently and at the time in the press. I too was surprised. However, who has 200 mil lying around for a board game?

One wonders about the deal it is a HUGE gamble on Koules part. He's risking 100mil of his money should he default and Palace sports get's the team back. That is not chump change. He's in this for the 'W'. Time will tell going forward.

Price did look a bit soft for a couple of those games but really shined in game 7. Good luck against the cream puff Flyers....... Even though I'm not a huge Hab fan.... anything is better than the flyers......

Au revoir

[léo]

That's good enough for me, Bingo! Welcome aboard.
As for the Kid, if he ONLY shines in game 7s from here on out, that's MORE than good enough.
He's a Champ, I tells ya.
Let's get it on! Man, I can't wait!
Maybe I'm biased, but I look at it this way: Better goalie, MTL. Better defense, MTL. Better forwards, MTL.
Downie/Richards/Upshall are in for another rude awakening at Our hands and Brière will disappear under the Bell Center pressure-cooker (just like always).
Biron? I don't know what keeps him going but he better pray he's got enough of it left. Will he pull a quebecer-performance in Montreal? Biron? Hey, if Denis could do it, so can he.
But I don't think so.
The Flyer coaching?
Mwah-ha-ha! Bring out your dead.
I can't wait!
sff

[Not The Marlboro Man]

Pat Burns needs to be highly considered as the Lightning new head coach. They need to get players and coaches that have an appreciation for the Tampa Bay area. Pat Burns has just that.

Florida, especially the Bay area has a nice appeal to most once they participate in the excellent year round golf and fishing horse racing etc...

This place beats the hell out of shoveling snow from September to June like in Calgary and Edmonton and Ottawa. The Housing market, although tremendously slumping at the moment, yields allot more for the buck than it does anywhere else in North America with maybe the exception of a few economically depressed areas in the Midwest and the lower Mississippi valley. No state income taxes is always a positive here and people who are happy to give you the time of day for the most part live in our fine communities. We have sunshine at least 300 days a year and only occasional tropical weather systems.

If I were a free agent I definitely would consider Tampa Bay as at least my second choice if not first choice. I thinks the only other two areas that can come close to competing with this area aesthetically is Denver, Phoenix and Vancouver. Atlanta has too much traffic and is over priced, Nashville is well, not a bad place to be, but the fans are not as dedicated to hockey as most. Anaheim has great weather but the cost of living and taxes will suck you dry and the traffic will try your patience 3x worse than Tampa's wil.

When free agency rolls around, I don't think Tampa Bay has too much trouble competing with the rest of the league...just ask Dave Andruychuk.

I'm hoping with the new ownership that he kicks Feaster out of here and all the rest of the prevaricating slugs in the front office then assess the Tortarella’s situation then see he's not worth the trouble. Hire's Burns or someone as capable with a more even temper. Hires a competent GM, Gets Brian Rolston to sign for three years, then gets John Michael Liles to sign for three years....kicks Shane Obrien to the curb and then signs a veteran Defenseman like Adam Foote or someone as good. Has a training camp that concentrates on developing chemistry instead of torture and. Change the Bolts from a negative hockey source to a positive force. When things are negative bad things always happen...like skates falling off of shelves severing tendons. Eye injuries and freakish things happening to good people. The Bolts need a positive mental attitude to begin next season. Start by getting positive coaches and players to lead when others fail to do so.

I personally have nothing against Coach Tortarella but I put him in the same category as Mike Keenan. They are both negative disciplinarians and their style usually outlive its effectiveness. Negative energy will destroy a goalie worse than a Al McGinnis slap shot from the slot.

This is just my take on what I would do if I had the reigns so take it for what its worth...not much, but its fun to think of yourself as an owner for a minute or two then you wake up and get another beer.

To Mr. Koules... please don't let us down and please don't move this team. You have a great opportunity to build something special. So surround yourself with smart non-yes men who will tell you the truth no matter how much you don't want to here it. Then play your winning gut feelings and don't discount the stats because in hockey they don't lie but also look for the intangibles and quality people not just players. Winning at all cost is not winning its buying a trophy. So even though you may not win a Cup, at least aim high and if you fall short do it with dignity and sportsmanship. The attitude will soon catch on from the owner on down and the team will reflect the winning attitude that was set as a precedence.

[bear]

Well hockey Chic, I see some dark clouds. Unlike Lisa, I doubt OK has an extra 20 million inside his mattress to throw towards the operating budget. You are bang on though as soon as he sets the budgets we will have a good chunk of the story.

Put me in the Philly camp but no matter Rangers will rule the east.

Anyone know what Torts contract status is..are they making a lame duck out of him or is he signed through 2010?

The sale is a fantastic deal for PSE. They off load a questionable asset that they don't want and if it bombs they get it back plus a 100 mill for the trouble. They always seem to get theirs first.

[//]

NTMM how about breaking it into chapters?

Only an armadillo could live in Fla year round and as a free agent hockey market , unless someone wants to disappear , it's # last.

[Badbud]

NO, UFA,is signing into the Mess this team is in right now, WHY would they won't to?

Pat Burns, eh?
I like it. He would fit beautifully, I think.
Thing is, if Ottawa goes for him and Burns still wants to coach? That's it. To Ottawa he will go. Right?
Totally agree with the comparisons between Tortie and Keenan, Marlboro. Both good coaches who surely have the team's best interests at heart and in a effort to inpire, cause loss of morale instead.
When he took Kipper out last night, I knew Keenan had just lost the series. That was a Mistake.
As for free-agents wanting to sign in TB for the sun and the peaceful atmosphere? Keep'em; we don't want'em. Winners sign where they think they might Win is how I see it.
Bear! You jumped ship!
Although Rangers vs Penguins? Wow. That's gonna be good. Winner of that one will definitely be Our ultimate test. But hey,
2 series is the Aim, this year. We win 2 series and this year has been a resounding success.
But I gotta say: Go Pens!
Cuz Rangers scare us the most, Greatest Comeback of the Millenium or not.
12 to 25
sff

[léo]

In case you missed it,
http://youtube.com/watch?v=zACGht3qfXA

[Bear]

Leo, GP and I, too the great chagrin of most, called Flyers to upset a couple of your boys and the Caps. Heart wins.

I think they have another chapter to playout.

Right on about UFA 's and Tampa

Rangers and Brad's Star's in La Coup

[Badbud]

Damn it man, Do you have enough Money to pay for a hair cut,seems to me You better be doing some saving your dollars.

[GP]

Lisa,

I agree with input from players but you can NEVER let the inmates run the asylum. That's bad business. It's the GM's job to see what is needed for the team ... not what the players want. If a new GM comes in, Torts is as good as gone. Most GM's like picking their own guy.

Leo,

I'm not going to get into a comparison match with you. I'm gonna let the series play out and hope to see some good hockey that will be decided in game 7. Your anaylis of the Flyers Offense, Defense, Goalie, and coaching are flat out disrespectful. I hope the MTL players feel the same way you do bc the Flyers have a serious chance to give you a rude awakening. The Habs have an incredibly balanced team and I like watching them. Enough said.

NTMM,

Agree with almost everything you said. Well put. The lack of chapters didn't bother me. // in general bothers me bc of his lack of originality and hockey knowledge. Maybe // is really Jay Feaster?
Not sure how TB would be a FA destination of choice if they don't have a legit shot at making the playoffs every year. The change of attitude you mentioned would greatly change that perception though.

Bear,

Again I agree with you until next round when the Flyers and Rangers face off. We then become enemies. ;)

[boltflasher]

GP, well said, as usual...filling in the holes on the top 2 lines is not what worries me as far as UFAs go...The UFAs will go wherever the $$$ is and Tampa will pick up a couple of them. What will be more difficult, and requires somebody who knows what they are doing, is getting the appropriate mix of players for the 3 and 4 lines as well as defensemen...it becomes even more difficult when trying to match them to the system here (look at O'Brien for example)...glad its not my job!!

[Lisa]

I agree, GP that the players don't run the show, but any good manager will always assess what is going on to get a good feel for the dynamics of the organization. You don't just come in and fire people if you want to have the support of the rest of the team. For a team to work, you need to get the input of the key members and then make decisions based on all the information you get, including the opinions of the key people in the organization.

I think that what key members of the team such as Vinny, Marty and Danny feel is very important to how you proceed with the organization of the team. You certainly don't want to keep Tortorella if Vinny hates him and it will affect his decision to stay on the team. (One of the key actions that the team needs to address is signing Vinny on long term, so you certainly want to know his opinion on the coaching staff) On the other hand, if Vinny says that he believes in Tortorella and would like to see him have another chance to turn things around, you certainly take that into account, as well.

So no, you don't let the players make the key decisions, but you certainly make an effort to get to know what their opinions are and take that into account (as well as your own research) when making personell decision. In many corporations, when there are takeovers, even if they don't like the management, the new owners pay bonuses to the upper management to keep them for at least a year to help maintain stability in the organization with the rest of the personell. I don't see this as being any different.

[GP]

Lisa,

Agree with what you said 100%. That is why I said I agree with getting inputs from the players.

The good and the bad of that scenario is this. Yes, you pointed out that if V4 was swayed to leave Tampa if he did not like Torts and Torts remained as coach. But what happens when V4 gives him the vote of confidence and mgt feels the need to make a change anyway? I think it's universally known that Torts has worn out his welcome here. I in know way doubt his coaching ability. I do doubt that he is the right coach to correct this ship. It happens all the time in hockey. Great coaches NEVER just coach one team.

The GM usually gets all this information during his exit interviews with each player. I'm sure Feaster already knows. If it is true that Torts almost resigned and mgt would not have stopped him speaks volumes of for his future.

I've digressed. The point of your blog was saying that the players should have some input. I 100% agree but I also think there is a fine line between giving too much power to the players. Your point on mgt being kept for a year after new ownership is also spot on. That is why I believe Feaster gets another year to fix this thing. I personally would fire them both immediately to stop this circus and hire Nonis and Pat Burns and start a new direction.

[hockey chic]

Well said fellow bloggers.

Everyone knows how I feel about Torts. He reminds me of a little 2 year old that wants to play a different game than anyone else. He will take his puck and go home. He is best suited in an environment that needs hard nosed leadership and that is a college or Olympic Team.

I know he has done a great deal for Tampa and the organization and for that I say Thank You, but I think it is time to move on.

When it was reported that several of the players spoke to him and wanted him to stay that does not surprise me. Our guys feel a sense of loyalty to him at least the ones that were here when they won the cup, Boiler, msl amd vinny and they always will. You do not lose a bond that you worked so hard to build when charging for a championship year.

However, it is time to make this a positive reinforced place. By that I do not mean the sun will come out tomorrow type place just good players, good ownership, reinforce teamwork, and I agree make camp torturella go away. It has served its purpose and to that I say happy trails coach. It has been real.

Go Bolts!!

[Badbud]

You all over look a big factor,OK Hockey does not have the $$$$$ to pay 2 GM's and 2 Coaches,sign the players that all the GM wannabe's say should be signed..and make his payments to PS&E on time.

[léo]

Yeah but GP, you KNOW I'm a bad boy.
It's not direspectful in the sense that I don't see any talent on your team, it's disrespectful in the sense that I just don't respect your team. I hate'em. And I'm happy that my Boys are gonna be the ones to tell you what time it is.
It's arrogance, GP.
Cuz We're champions and we're gonna win.
We're the MTL Canadiens.
That's what We do.
12 to 25
sff

[Bear]

Heh Badbud I've said that all along as well. The fact that they are underfinanced just seems to gloss over people. The chickens will come home to roost when the cap goes to 58 and bolts come in at 48.
100% correct as well about buying out Feaster and Torts..if they do that then they bring in rookies who work cheap..like say Sullivan..bad

Leo your arrogance got pretty much blown apart last week..I'd stay closer to that watermark..the Flyers could easily topple Montreal.

[matt]

Bear,
Damn I hope to hell the Bolts spend 48 million next year. Holy shi# I don't think anyone on here thinks it will be that high but if it is, sweet! They are only at 35 million for next season with the core locked up. 13 million to spend sounds good to me. Realistically it will be closer to the floor of 40 in my opinion.

And sorry Leo, but if the Flyers get past the Habs the Bolts get a better draft pick from Phil for the Prospal trade. So I would hope most people on here would want Phil to win regardless how much we Tampa fans hate the Flyers.

[matt]

Anybody curious who is locked up for next season and the cap total check out this site
http://www.nhlscap.com/capnumbers/tampabay.htm

[leo]

That Kinda hopin< you Oh well.
12 to 25

[Tackleberry]

Hockey Chick,
"Oh and Mr Koules want to do something really neat bring Espo back into the fole. He started this and I am sure he has some great ideas."

I hope that he puts Phil in a role of advisory and/or PR. A Hockey hall of fame'r doing PR and being the face of the Bolts. Dont know if Phil would bite off on that unless Oren were to give him a lot of support. If Phil were to say something about hockey, I would take that as gospel.

I would love to have Phil be a regular on this blog.

Hockey Chick, I agree that Oren needs to seek the services of Esposito.