Report: OK Hockey in default on Palace Sports Loan

by John Fontana on Jan 20, 2010 8:03 PM EST in Business of Hockey Comment 7 comments

Bruce MacLeod, a Red Wings beat reporter for the Macomb Daily (a suburban Detroit newspaper), is reporting on his newspaper blog that, allegedly, OK Hockey has gone into default on it's loan from Palace Sports and Entertainmentt - the previous ownership group for the Tampa Bay Lightning. This news was part of a larger story concerning ownership issues with the Detroit Piston's franchise and Palace Sports and Entertainment in general. The widow of Bill Davidson (Late principle owner for the Lightning and Palace Sports and Entertainment) is looking to move assets under Palace Sports ownership -- or Palace Sports itself.

As for the Lightning, the report from MacLeod says:

The Palace source said that traditional financing is being sought so that the Pistons will be paid in full for the sale of the Lightning. That source also said that the NHL is setting a Feb. 15 deadline for finding new ownership.

The Lightning source, however, said that Tampa Bay ownership denies that it is working under a deadline.

Restructuring the Lightning ownership group with the addition of new capital is a possibility and one that the current Tampa Bay ownership would prefer. But the source said that: "The most likely scenario is a new owner. The League wants to expedite it."

There is enough from the source (being close to Auburn Hills, being a third party with no interest in Lightning gossip unlike the rumor-mongering from the Canadian press) that makes us take this report seriously.

We'll have more information as it becomes available.

[Note by John Fontana, 01/20/10 8:23 PM EST ] multiple edits since initial publication

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On Bruce MacLeod

John,

As a follower and fellow blogger around the Red Wings, I can tell you that Bruce MacLeod is a very reliable source, at least with his Red Wings coverage, and is very highly regarded as a reliable and thorough reporter.. he does his homework and he doesn’t rush to publish a story just on the “hot tip”.

Best of luck.

Find me on twitter @chollis

by motownchollis on Jan 20, 2010 9:02 PM EST reply actions 0 recs

I think it was the fact that his blog is on blogspot

…not on other software that, in part, got me wondering about this. I’ve had others vouch for him (as well as co-blogger Cassie McClellan here at RC).

9:12. Lights out. Raw Charge.

by John Fontana on Jan 20, 2010 9:22 PM EST up reply actions 0 recs

You did see that the blog is directly linked to the paper, John – logos and everything?

"Last season we couldn't win at home and we were losing on the road. My failure was that I couldn't think of any place else to play." -Harry Neale, during the '81-'82 as Vancouver Canucks head coach

Raw Charge, an SBN Tampa Bay Lightning community.

by Cassie McClellan on Jan 20, 2010 9:26 PM EST up reply actions 0 recs

Palace Will Take A Bath.....

…..if they have to seek a new owner within time constraints. The franchise is worth about 75 percent of the reported sale to OK. Koules and Barrie together might have barely mustered 10 percent as a down payment and that would be a stretch. The rest of the paper has defaulted. I don’t know if Palace held all of the paper or just the majority but either way, they will lose $$$ if the sale is rushed. Chances are they will lose anyway, just not nearly as much.

At least the on-ice product will improve assuming quick changes are made for Head Coach and GM.

by Gobaby on Jan 21, 2010 1:46 PM EST reply actions 0 recs

tampabay.com has some additional info you guys may not have previously been privy to.

http://www.tampabay.com/sports/hockey/lightning/article1067256.ece

Apparently loans from both the NHL (this year) and Sun Sports (last year) needed to make payroll, among other things.

I miss George Steinbrenner. He was the man responsible for keeping the Yankees competitive.

by kericr on Jan 22, 2010 9:01 AM EST reply actions 0 recs

Saw it this morning, thanks

And yes, we weren’t privy to it. I gots ta bookmark Sports Business Daily (the source of their info). That comes in handy for all the TB teams (sadly)

9:12. Lights out. Raw Charge.

by John Fontana on Jan 22, 2010 9:50 AM EST up reply actions 0 recs