Lightning Sale Approved

It looks to finally be official. The Tampa Bay Lightning sale has been approved by the NHL. Something that should be a relief to the Bettman and the rest of the league.

Boston businessman Jeff Vinik will take over the team from the semi-disfunctional Oren Koules and Len Barrie who have seemingly been fueding since they purchased the oft-sold franchise.

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((Jeff Vinik photo//Courtesy: Tampa Bay Lightning))

The Barrie-Koules group spent a ton of money and didn't generate tons of results for the Lightning. Though they haven't been bad, they haven't duplicated the success the team had under the late Bill Davidson either.

The one thing this does do is hopefully bring some stability. Though the Lightning are not among the teams on that "List" of potential movers, this should make sure that they are Tampa for a long, long time. The official announcement is expected when the Bettman is in Tampa on Friday.

Here is an interview with Vinik from when the planned sale was announced. Thanks Fox13 Tampa Bay.

Ex-Lightning Co-Owner Under Investigation

((HT: GlobeSports/Shoalts))
We've covered the exploits and shenanigans of the Tampa Bay Lightning ownership pairing in the past.

One owner got the chance to buy out the other. The owner of the first part couldn't get his financing together, so now its the other owner's turn to try and get financing to buy the owner of the first part out once and for all..

Sound confusing...???

It is...

Len Barrie was supposed to get the first dibs on buying out Oren Koules. Barrie was supposed to get financing help on a British Columbia development from a Dubai-based outfit. It hasn't happened... to the tune of US$350-million of not happening.

So, now Barrie is getting his books looked at by the Canada Revenue Agency after a former auditor pretty much yelled shenanigans...

It's like having the IRS look at your books in the States... and we all know how that goes... guilty until proven innocent.

The auditor claims that Barrie financed his Lightning stake with funds from his Bear Mountain development project.

Koules has even moved down to Tampa to keep a restrictive-financial eye on things.
He's still looking for a dance partner, but hasn't found one yet, either.

Those of us at OSG HQ are doing the math: Florida, Atlanta, Tampa, Columbus, Phoenix, the Islanders, Nashville...

Should we stop...???

Barrie Still Working On Lightning Sale

((HT: TSN))

Len Barrie's ((pictured, thanks Bruce Bennett/Getty)) window to buy the Tampa Bay Lightning from partner Oren Koules closed on Monday night but the former NHLer hasn't given up yet.

According to the Tampa Tribune, Barrie was still working on a deal with St. Louis real estate mogul Anthony Sansone Jr. under the assumption his window didn't close until Wednesday.

Originally, Barrie was given until Wednesday but the report indicates that because he missed multiple deadlines over the last 60 days, the window was moved up to Monday.

The CBC's Elliotte Friedman has details on that here...

Barrie released a statement on Tuesday to address the situation.

"The process is still ongoing and Oren (Koules) and I are working to protect our investments and do what's best for the team," said Barrie in the statement. "I'm still working on a deal, and so is Oren. Both of us want this resolved before the start of the season. Everyone will be advised when the process is complete."

When Barrie and Koules teamed up to buy the Lightning last year, Barrie reportedly invested $40 million of the $200 million purchase price, which appears to be the amount he would like to recoup if he is unable to buy out Koules.

Erik Erlendsson's piece in the Trib is here...

TSN's Darren Dreger maintains, through his Twitter feed, that Barrie isn't "dead yet."

Barrie Probably Giving Up Bolts Share First

((HT: GlobeSports/Shoalts))

...a person with knowledge of how the buyout agreement was set up confirmed the reason Barrie ((pictured, thanks CP)) was allowed to go first is because no one thinks he can pull it off.

If he can't, then Bettman can say: “Len, you had your chance and now we'll turn things over to Oren.” If Koules went first and was successful, Barrie could have claimed he was not given a fair chance.

Soon all that will be left is the question of how a league that supposedly put in new, tough due-diligence procedures with the arrival of the Lightning co-owners last year did not see anything wrong with someone whose net worth was tied up in a real estate gamble.

It looks as if Barrie has to drop out before his September deadline because he is fighting to save that gamble – a massive development near Victoria called Bear Mountain.

Like many real estate developers, Barrie and his 17 investors – who include current and former NHL players such as Mike Vernon, Gary Roberts, Joe Nieuwendyk, Ray Whitney, Rob Blake, Ryan Smyth, Sean Burke, Rob Niedermayer, Scott Mellanby, Matt Pettinger and Trevor Kidd – were whipsawed by falling prices and the drying up of bank credit.

Some of those investors are angry and some are not, but they all have two things in common: They are not talking about it and all fervently hope Barrie can pull a rabbit out of his hat. He needs to work out a new financing deal on the 500-hectare development that includes two golf courses, a resort, hotel and as many as 5,000 condominiums, townhouses and residential lots.

Barrie announced recently that he got a Dubai-based investment firm to go in with him on Bear Mountain to the tune of $350M. Siraj Capital gets their money back and a 25-percent stake when Barrie sells all the housing units.

Shoalts says their religion "forbids" interest payments...
How wild is that...???
It's up-front or it's a sin...
Neat...

Those of us at OSG HQ think Barrie is screwed in more than one direction on this one... and he can't afford to mess anything else up anymore...

There's also talk that Anthony Sansone, Junior is looking to get in on the Bolts. He can't say anything. Koules and Barrie can't say anything. But, apparently, he was kicking the tires over the weekend. He was also interested in the St Louis Blues a few years back...

NHL Wants A Lightning Owner To Buy Out The Other

((HT: St Pete Times/Cristodero))

The NHL apparently has decided the Lightning's ownership situation is unsustainable and set up a process in which squabbling co-owners Len Barrie ((pictured, thanks Bruce Bennett/Getty)) and Oren Koules can buy each other out.

Barrie has the first shot in an exclusive 60-day window that apparently runs out in mid to late September. If Barrie fails, Koules gets his chance.

Purchase price is not the only issue. The parties also must prove they can handle the substantial debt obligations to former owner Palace Sports & Entertainment.

If either Barrie or Koules meets those parameters during his exclusive window, the other must sell. In this way, the league hopes to bring stability to one of its most troubled franchises. How important is that? Let Phil Esposito tell you.

"Very, very, very," said the Lightning founder, who dealt with a Japanese group that forged an unsteady course in the franchise's earliest years.

"I can't emphasize enough how important it is. Then everything falls into place. Good management comes with that. Good players come with that."

What happens if both sides fail?

They might just have to live with each other; or the league might find a buyer; or perhaps Palace Sports will take back control. The former owner financed about $70 million of the $200 million purchase price and loaned OK Hockey another $30 million in operating capital.

No one is commenting; not the league, which declined several requests; not Palace Sports CEO Tom Wilson; not Koules, Barrie or anyone in their entourages, as per a gag order issued by commissioner Gary Bettman.

It is clear, though, the league is forcing a resolution.

The buyout windows are at least the third step in a plan laid out by Bettman at a June 23 meeting at the league's New York offices, where he demanded the owners work out their financial and philosophical differences about how to run the team.

Bettman made sure everyone knew his place. Koules is CEO and governor and, with general manager Brian Lawton, handles much of the day-to-day running of the organization. Lawton, as head of hockey operations, is the point man for all transactions (in other words, no meddling by the owners), and Barrie must be consulted on any transaction of more than $2 million.

The commissioner also established deadlines.

Barrie was ordered to produce a $10 million irrevocable letter of credit by July 17 to establish he could cover his portion of the team's projected losses next season and provide a bit of a cushion. The NHL never confirmed that happened, but deputy commissioner Bill Daly said at the time he was "satisfied where things stand."

Barrie also met an Aug. 1 deadline for repaying a $3 million personal loan from Koules, who covered a cash call last season that Barrie missed.

They were positive steps in creating the stability the owners say they want, and Lawton has had a superb summer as he significantly bolstered the team's blue line, cut payroll and is in the hunt for free agent wing Alex Tanguay.

Still, several aspects of the situation are unknown.

Why was Barrie given first crack at the buyout? How much will the buyouts cost? Will Koules' buyout window be of similar duration?

What is known is unless one or the other comes up with cash or a bank check (quite an assignment in this economy), any new investors will be subject to the league's due diligence and must be approved by 23 of the 30 members of the Board of Governors. The deal also must be approved by Palace Sports.

In other words, the process likely will not be quick.

"I know there's a passion with them," Esposito said of the co-owners.

The question is, does either have the money?

Lightning's Barrie Shows Proof Of Funds

((HT: TSN/Dreger))

Len Barrie supplied the National Hockey League with a letter of credit showing he has the funds to maintain his ownership stake in the Tampa Bay Lightning.

When contacted by TSN, Barrie said he wasn't able to comment on future ownership but he was very pleased with his meeting with NHL commissioner Gary Bettman.

"The league is satisfied and things are progressing nicely," Barrie concluded.

Earlier this week the St. Petersburg Times reported Barrie was told by Bettman that he had a Friday deadline to prove that he had $10 million and could continue to fund the team.

There have been numerous reports of friction with Tampa's ownership over the last few months. As it stands now, co-owner Oren Koules acts as the Chief Executive Officer and league governor for the team, but Barrie's input is required for major personnel decisions.

Bettman called a meeting with the two owners and general manager Brian Lawton on June 23 in an attempt to try to solve the power struggle that has developed between the owners.

Barrie Needs $10M To NHL By Friday

((HT: TSN))

It looks like Tampa Bay Lightning co-owner Len Barrie ((pictured, thanks Bruce Bennett/Getty)) will have to put his money where his mouth is.

According to a report in the St. Petersburg Times, Barrie was told by NHL commissioner Gary Bettman that he had a deadline set for this Friday to have $10 million to prove that he can continue funding the club.

By the way, Damian Cristodero's piece is here...

The money would reportedly be used to cover the Lightning's financial losses for the current fiscal year as well as provide a slush fund in case more money is needed.

The Times reports that while the consequences for not meeting the deadline are unclear, it is possible that Bettman could take away Barrie's rights to manage the team.

As it stands now, co-owner Oren Koules acts as the Chief Executive Officer and league governor for the team, but Barrie's input is required for all major personnel decisions.

Bettman called a meeting with the two owners and general manager Brian Lawton on June 23 in an attempt to try to solve the power struggle that has developed between the two owners who are at odds in how to best build the team, both philosophically and financially.