New Lightning Owners Experience Tough First Season At Helm
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Rumors Of Bankruptcy
Surround Lightning |
Since the eight-member OK Hockey group led by Lightning co-Owners Len Barrie and Oren Koules bought the team last year, "many of the regime's decisions, including the dismissal of most of the executives and coaching staff, have raised eyebrows in the hockey world," according to Sean Gordon of the GLOBE & MAIL. The Lightning "despite considerable expense and fanfare" endured a season "only slightly less disastrous than last year's, when they finished dead last." An NHL Governor said of OK Hockey, "Basically everyone who owns an NHL hockey team is a successful business guy, but just because you're good at something else doesn't necessarily mean you'll be good at this. They still have a lot to learn." A player agent who "has had extensive dealings with the team" said the Lightning's owners "don't really seem to understand the business they're in." Gordon notes lately "dozens of rumours have wafted around the Lightning," including reports the team was "bankrupt, looking for buyers, borrowing from distress lenders, and on the verge of trading their best player, Vincent Lecavalier, because they were in danger of defaulting on his $500,000 bonus." Those rumors "have been privately -- and, in Lecavalier's case, publicly -- denied by team officials." But Gordon writes, "Two things are certain: The Lightning are losing money, and the clock is ticking for the ownership group to either pay off or refinance about half the purchase price." The team has "tweaked ticket prices to ensure they receive their allotment under the league's revenue-sharing scheme," as the team's average attendance total "includes about 2,000 free or deeply discounted tickets." Gordon notes the Lightning's season-ticket base has "fallen from 14,000 in 2003-2004, Tampa's Cup season, to about 10,000 now," and sources said that team revenues have "fallen in the order of 15%" (GLOBE & MAIL, 4/24).
OUT OF THE GAME? Sources indicated that Canadiens Owner and EPL club Liverpool co-Owner George Gillett by this summer is "likely to sell" the Canadiens and "focus his attention on Liverpool." Financial sources said that while Gillett has "consistently said any deal involving the storied NHL franchise and the Bell Centre will be based on 'estate planning,'" he is facing a "financial squeeze, and is being pressed by his banks to pay down personal debts." One source: "The best asset to save is Liverpool, because there's probably more upside to Liverpool than any other sports franchise on the planet." Another source said Gillett's holdings are "like his children, he'd be reluctant to give anything up, but the Canadiens are the easiest franchise to sell." The GLOBE & MAIL's Willis & Erman note "at least two Quebec-based groups" are interested in the team, and Quebec and Montreal politicians are "being pitched on a plan to give an edge to local buyers by offering property tax concessions on the Bell Centre, tax breaks that Gillett has unsuccessfully sought in the past." Sources also said that the franchise has "attracted the interest of at least two out-of-province bidders" (GLOBE & MAIL, 4/24).
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