Possible Pistons Sale Accelerating Search For Lightning Buyer

Karen Davidson's plan to explore a sale of the Pistons and Palace Sports & Entertainment (PS&E) has accelerated efforts by Lightning owners and the NHL to find a buyer for the Tampa Bay franchise, sources said. Oren Koules and Len Barrie borrowed $100M to buy the Lightning from PS&E and Galatioto Sports Partners in '08. Multiple sources said that they have defaulted on that loan. Currently, Koules and Barrie are looking to put together separate groups to buy the team, and the league is searching for a third potential bidder, sources said. The Lightning and the NHL have said that they expect to get a deal done soon. To help the Lightning cover their January payroll obligations, the NHL has advanced the club revenue-sharing money for the '09-10 season, multiple sources said. The advances are the second the Lightning have received to cover payroll. In April '09, the club got an advance of $2M from broadcaster Sun Sports to help make its last payroll of the season, sources said. The NHL previously advanced revenue-sharing money to the Coyotes in late '08. That team subsequently wound up in bankruptcy. Lightning and Palace officials declined to comment. NHL Deputy Commissioner Bill Daly said, "We are working with the current Lightning owners to resolve a number of issues for their mutual benefit, and for the long-term benefit of the franchise and the League. We hope to have resolution on at least some of those issues in the relatively near future." A sale would bring an end to the partnership between Koules and Barrie, who have had an acrimonious relationship marked by disagreements over management and liquidity issues. The Lightning's attendance is down 9.7% compared to last season, and their average of 15,025 spectators a game is 20% fewer than the 18,801 fans a game they averaged over the same period in the '07-08 season, when the team was controlled by Palace Sports management (Mickle & Lombardo, SportsBusiness Journal).

LIGHTNING STRIKES: NHL and PS&E sources indicated that ownership of the Lightning "could revert back to Davidson as early as Feb. 15, although the Lightning wouldn't confirm any deadline." PS&E execs are "girding for the inevitable return of the team they sold in August 2008." PS&E has essentially "held the mortgage on the hockey franchise, collecting a monthly payment, since the sale was approved." Prior to his death last year, Bill Davidson "agreed he would take back the franchise if the new owners defaulted on the loan." If Karen Davidson regains control of the Lightning, the team "could be lumped on to a sale package" along with the Pistons and PS&E, "making a sell tougher" (DETROIT NEWS, 1/21).