TAMPA, Fla. – A year ago, the Tampa Bay Lightning were riding high with new ownership, a new coach in Barry Melrose, the number one draft choice in Steven Stamkos and All-Star forward Vinny Lecavalier signed to a long term contract extension that would almost guarantee his retirement in a Lightning uniform. Now it seems that all of the good feelings and positive energy have dissolved into a tenuous situation that could threaten the stability of the franchise. When movie producer Oren Koules and former NHL player-turned-real estate mogul Len Barrie formed OK Hockey to purchase the Lightning, everything appeared to be in place to push the Bolts forward. Instead, the two “friends” have allowed their relationship to deteriorate into a battle for control of the team that has forced the NHL to step in to push for a resolution. Commissioner Gary Bettman took the unusual step of giving Barrie 60 days to come up with a plan to acquire enough financing to buy out Koules and at the same time bankroll the operation of the team, including paying off a debt to former owner Palace Sports and Entertainment. Should Barrie fail, Koules will have 60 days to figure out a way to purchase Barrie’s stake in the team. If neither one is able to do as the league wishes, the franchise could be given back to Palace Sports or the NHL may go out and find its own alternative investor group to relieve Barrie and Koules of their pieces of the franchise. (Over the past weekend, Yahoo!Sports.com reported that former owner Phil Esposito has expressed an interest in putting together a group to reacquire the team that he originally built back in the mid-1990’s.) There is also the possibility that Koules and Barrie will have to learn how to coexist and somehow not destroy the team in the process. The fact that things have progressed to this point is a testament to just how dysfunctional the Lightning boardroom has become. It also proves just how much closer the situation is to one of Koules’ “Saw” movies than it is to a Hollywood storybook ending. It is generally accepted that all ownership groups have disagreements within their borders, be they of a personality or a philosophical nature. In this case, both personalities and philosophies came into play as have decisions along the way. When OK Hockey was approved by the NHL Board of Governors, both Koules and Barrie promised aggressive spending in the free agent market and they delivered. They brought in Barry Melrose – a personal friend of Koules – to run the team even though Melrose hadn’t been behind a bench in more than a decade. They also hired Brian Lawton as general manager to make personnel moves and run the operation. Finally, they touted the blockbuster 11-year, $85 million deal that locked up Lecavalier long term as solidifying the core of the franchise. It all seemed so perfect but just like when Dorothy and her crew met the Wizard of Oz, there was more going on behind the curtains than the fans knew. Koules, who participated in the day-to-day decision making, is a fan of Lawton’s thought process and wants him to be the go-to guy. Koules is also apparently a budget-conscious fellow (what movie producer isn’t) who likes to keep the payroll down, even if it were to mean ditching the team’s franchise player in Lecavalier. On the other side of the room, Barrie – who reportedly gets approval on all transactions over $2 million – was not as thrilled about Lawton’s position and he believes in the “you have to spend money to make money” principal and that Lecavalier is the cornerstone of the team, especially with Stamkos under his wing. Barrie also publicly went toe-to-toe with John Tortorella and Melrose. One thing that insiders can agree on: both Koules and Barrie haven’t exactly been telling the truth when asked about things such as their relationship, going so far as to dismiss anyone who has dared to suggest the pair aren’t in lock step as being “misguided”. There is also a question about the financial stability of both men. According to the St. Pete Times newspaper, Koules had to bail out Barrie with a $3 million loan to cover a cash call. In a June 23rd meeting called by Bettman to try to settle things, Barrie was given until August 1 to pay off the loan as well as producing a $10 million irrevocable letter of credit to the league by July 17 to show that he could “cover his portion of the team’s projected losses for next season” with room to spare. (NHL deputy commissioner Bill Daly stated on July 17 that the “league was satisfied with where things stand” which people took to mean that Barrie had produced the line of credit.) Palace Sports, which was owned by William Davidson up until his death in March of 2009, still has a major stake in the Lightning feud. When the sale of the team was signed off on, Palace financed $70 million of the $200 million sale price. It also loaned OK Hockey $30 in operating capital. As part of the league-contrived plan, Barrie or Koules would have to have enough financial backing to pay down what is left of the $100 million owed to Palace. Should the league decide to find other suitable investors, Palace would have to sign off on the sale because of that extra debt along with 23 members of the NHL Board of Governors agreeing to the deal. Where all of this goes is anyone guess. What is also unclear is what collateral damage the feud will have on the entire organization, especially the AHL farm team in Norfolk, Virginia and the newly formed agreement with the CHL’s Colorado Eagles. Hopefully for them, this story will end with everything being A-OK instead of a shootout at the OK Corral. Contact the author at don.money@prohockeynews.com
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