It's fact. Owners of the Tampa Bay Lightning are looking for more partners.
Co-Owner Len Barrie confirmed the group is seeking addition investors. It's all about the bottom line, and there's plenty of debt that needs to be addressed.
As we stated in earlier blogs, Palace Sports and Entertainment loaned OK Hockey around $100M to move the sale through.
The actually price tag for the franchise was just over $200M. It appears that the group is okay for right now, but debt payables in the future will mount up, and an infusion of cash is needed to settle that future debt.
The question I have to ask? Would you invest in the Tampa Bay Lightning?
If I had the kind of money the late Mr. Bill Davidson had (billionaire), sure. But any man with that kind of clout would not likely want to be a minority owner of any franchise.
Fact is, even before the economy took a dive, making money was difficult for the Lightning. They had to go deep into the playoffs the year they won the Stanley Cup to see black instead of red ink.
That's not a healthy scenario.
I also wrote after Mr. Davidson's death that it was uncertain who might inherit the Lightning. I still don't know. Did the loan portion stay in the Palace Sports and Entertainment business?
Perhaps, it was willed to someone. In either case, I'm guessing since
PS@E wanted out so badly in the first place, do you think they'll be a forgiving group when it comes to payables on the loan?
I am thinking out loud here, and there remains a concern. If OK Hockey was to not get an infusion from new investors, then what?
How much staying power do they have?
Who would assume ownership if worse came to worse?
Regardless of what you think about OK Hockey and the moves they've made, I like Oren Koules and Len Barrie. I wish them all the success possible.
I just hope these investors materialize. If not.....
