Jeff Vinik's Deal For Lightning Reportedly Worth About $110M

Vinik Declares Commitment To Fixing Lightning's On, Off-Ice Troubles

Prospective Lightning Owner Jeff Vinik has signed a purchase agreement for the team, St. Pete Times Forum and 5 1/2 acres around the arena for what is "believed to be about" $110M, according to Damian Cristodero of the ST. PETERSBURG TIMES. Vinik said that he is "committed to turning around a franchise that since winning the 2004 Stanley Cup has lost games, fans and millions of dollars." Vinik: "I will do everything in my power to bring a world-class organization to the community, both on the ice and off the ice. I am going to put the resources forth that are necessary to making this a successful organization." Vinik's "first step was taking over player payroll, an important stabilizer because of reports the team took an advance on its league revenue-sharing fund to meet January's payroll." Cristodero noted "for now, that seems to be the limit of Vinik's involvement," as he "declined to speculate on potential personnel moves in the front office or on the ice, saying he is not yet the owner." Meanwhile, Vinik, who owns Vinik Asset Management, "understands people will look skeptically at his ownership." He is a "finance guy," and the Lightning are a "distressed property that could be a buy-low, sell-high investment." However, Vinik said that perception is "wrong, 180 degrees backwards." Vinik: "My business is my business, and I enjoy it. I'm a money manager, and that's terrific. But this ownership is going to be myself ... and I'm going to control it 100[%]. I make investments at work. I don't want to make investments here." Lightning Founder Phil Esposito, who Thursday "had a 15-minute conversation with Vinik," said Vinik "just seemed like he was committed." Esposito: "He wants to know what's going on, and that's what I was looking for. It made me very happy." Cristodero noted Vinik "plans to eventually relocate his wife and four kids" to the Tampa area (ST. PETERSBURG TIMES, 2/6).

DEAL DETAILS: The ST. PETERSBURG TIMES' Cristodero noted as part of the sale it is believed former Lightning Owner Palace Sports & Entertainment "took a percentage of the approximate $97[M] it was owed" by Lightning Owner OK Hockey. It is believed Galatioto Sports Partners, which helped finance OK Hockey's purchase of the team, was "paid its $32[M] principal plus interest." Lightning co-Owners Len Barrie and Oren Koules lost an estimated $60M "between them, though Koules is expected to get more back from the sale for covering Barrie when he could not meet cash calls" (ST. PETERSBURG TIMES, 2/6). Meanwhile, the GLOBE & MAIL's David Shoalts cited a source as saying that Vinik has "not decided who will run the team for him but he expects to hire a president soon." One candidate "may be former Lightning president Ron Campbell." Lightning GM Brian Lawton's job "appears to be safe for now." Shoalts wrote there was a "great deal of motivation" for NHL Commissioner Gary Bettman to "conclude the sale of the Lightning as quickly as possible." But selling the Lightning was "difficult" for Koules because he "did not want to sell a majority share of the club and was unable to maintain a role in the operation after it became clear Vinik did not want any partners" (GLOBE & MAIL, 2/6). ESPN.com's Pierre LeBrun reported Koules "would like to get back in with another team as a minority partner" ("HNIC," CBC, 2/6). 

HANDS-OFF APPROACH: Vinik said of his role with the Lightning, "I am the owner. I've got to find great people to run the organization. ... I, as the owner, may be brought in on a couple of things, but I'm not going to run the organization" (ST. PETERSBURG TIMES, 2/6). Cristodero yesterday noted Vinik "is not going to make any immediate changes," as he "still has to hire a CEO type to start a top-down evaluation that will include players and coaches." Meanwhile, the "process of impressing the boss can begin" for Lawton, who is "connected at the hip to" Koules and whose contract expires at the end of the season (ST. PETERSBURG TIMES, 2/7). Vinik participated in an extensive Q&A (TAMPABAY.com, 2/6).