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NHL OKs Bolts Sale To OK Hockey

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By ERIK ERLENDSSON

The Tampa Tribune

Published: June 19, 2008

Updated: 06/19/2008 12:11 am

The imperfect sale process of the Lightning was approved by a perfect vote Wednesday.

A 10-month saga that began Aug. 7, 2007, ended in New York when the NHL's Board of Governors voted unanimously to approve the sale of the team, the lease to the St. Pete Times Forum and 5.5 acres of adjacent land in a $200 million deal from Detroit-based Palace Sports and Entertainment to OK Hockey, a group led by majority investor and Hollywood producer Oren Koules along with former NHL player Len Barrie and at least six other yet-to-be-named partners.

The deal is expected to close no later than June 30, the team said in a statement. That final step will allow Koules to become the fourth majority owner in franchise history.

"We are thrilled that the National Hockey League and its governors offered its unanimous affirmation today," said Koules, who will serve as governor of the Lightning after the closing, in the statement. "Len Barrie, myself and our other partners look forward to jumping in with both feet, ensuring Tampa Bay it will have a team to be proud of on and off the ice for years to come. Additionally, we intend to focus on the 2008-09 season immediately."

Other members believed to be involved in the ownership group include Mark Burg, Koules' partner at Evolution Entertainment, founder of the "Saw" movie franchise, and California financier Russell Belinsky. There also has been an indication that some other minority investors could be former NHL players such as Barrie and that some could be from the Tampa area.

Wednesday's approval ends a nearly year-long process that included Koules' former partners with Absolute Hockey, including South Florida land developer Jeff Sherrin, filing a lawsuit in November that was eventually settled by the league in December. Koules also had to endure a long search to find the necessary financing before a deal was reached.

While the announcement of the approval is a significant step in the process, it is not the final hurdle. Before Koules can do anything officially as the new owner, the deal must close with the bank. After a financing deal with Paris-based bank Societe Generale fell through in February following a stock scandal, Palace Sports along with Galatioto Sports Partners stepped in to serve as the primary lenders in the deal.

It is believed Koules is eager to speak to fans and the media about his vision for the franchise moving forward - specifically, addressing the coaching vacancy and his plan to attack the free agent market beginning July 1 - but he remains under wraps by the league in regards to making any comments or official decisions until the final step is cleared.

Continued talks between Koules and the league are expected today to determine how much leeway the new ownership will be given in regards to making any official moves or public appearances until the deal closes. NHL commissioner Gary Bettman has consistently instructed Koules not to act like an owner until he becomes one, a mandate that remains in place at least for this week.

With the exception of the selection of franchise center Steven Stamkos with the first pick in Friday's NHL entry draft, the direction the franchise will take under Koules and his group remains somewhat unknown. But the direction the team took under Palace Sports and Entertainment, led by 84-year-old billionaire Bill Davidson, set the franchise on stable footing.

When Palace Sports purchased the team from Art Williams in 1999, the Lightning were a franchise in disarray, on and off the ice. Team president Ron Campbell, along with current General Manager Jay Feaster and former coach John Tortorella, began to turn the team's fortunes around in 2002. By 2003, they won a division title and a playoff round, and a year later they were Stanley Cup champions.

"Bill Davidson, for a variety of reasons, hasn't been able to be in Tampa for a while," Bettman told The Associated Press. "Having really made that franchise as stable as it's ever been, having brought a Stanley Cup championship to the Tampa Bay region, I think he felt it was time to provide for the future of the franchise."

OK, THE SALE IS APPROVED - WHAT'S NEXT?

After the NHL's Board of Governors unanimously approved the sale of the Lightning to OK Hockey, led by Oren Koules and Len Barrie, the new owners are in charge - sort of. Any time the league approves a sale, it is contingent on the closing of that sale. Similar to when you buy a house - you don't move in when the mortgage is approved; the keys are handed over when the bank says it's finalized. Both sides are shooting for a June 30 closing date.

While it won't stop Koules from calling the shots behind the scenes, the league continues to keep Koules from speaking publicly and making decisions such as hiring a coach. While he is eager to speak about his plans for the franchise, including his aggressive plan for free agency, and to address the fans, it appears likely it will be at least another week before Koules is free to share his thoughts.

Among the more pressing issues:

Hiring a coach: Although there has been plenty written that Barry Melrose will be the next coach and his staff will include Rick Tocchet, Wes Walz and former goaltender Cap Raeder, nothing is official. Koules would like to make this public before the July 1 start of free agency, which could be a selling point to potential players.

Extending Vinny: Koules has privately stated his intention to lock up center Vinny Lecavalier to a long-term contract that would see him retire as a member of the franchise. While nothing can be done officially until July 1, expect to see this situation resolved by the middle of next month.

Contract issues: Qualifying offers for restricted free agents have to be issued by the end of the month for the team to retain their right to match. Also, the remaining year on goaltender Marc Denis' contract is expected to be bought out, but the buyout deadline is June 30.

Meeting the fans: Koules wants to hold a town hall meeting with fans and ticket-holders so they can hear directly from him his vision of the team and how he plans to build the roster. Preliminary plans to hold the meeting today are on hold pending the closing of the deal.

Free agency: The frenzy begins July 1, so closing the sale before then is imperative for Koules. The team likely will be aggressive once the bidding wars begin, but things typically cool down rapidly once the market opens, so having the openness to spend as he sees fit is important.

Reporter Erik Erlendsson can be reached at (813) 259-7835 or eerlendsson@tampatrib.com.

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