Tampa Bay Lightning Sale

reinjosh writes "A new story is emerging from of the the NHL's sunbelt team. Apparently a perspective owner is being approached and is in talks with the NHL and Bettman to buy the Tampa Bay Lightning.

http://www.tsn.ca/nhl/story/?id=308043

http://www.thehockeynews.com/articles/31133-THNcom-Blog-Vinik-buying-Bolts-would-signal-bad-news-for-team-league.html

So this deal signals a possible end to the moronic squabbling between current owners Len Barrie and Oren Koules. The two were thought to bring stability to a franchise losing money out of its ears and with their actual interest in hockey, stability was expected. Such a case did not turn out.

The two have turned on each other and have very little money between the two of them. The stability that was thought to be their is gone. The team has financial troubles and the NHL is stepping in. Enter Gary Bettman. He takes the problem to Jeffrey Vinik, a hedge fund owner based in Boston.

Now this is where it gets interesting. Vinik did not come the NHL looking to purchase the team but rather the NHL came to him. Bettman has pitched the sale to Vinik as an investment. Buy the team and make a profit. Bettman is looking towards the stability of actually having an owner with money and a lot of it, but seems to be ignoring the obvious fact that Vinik has little interest in the NHL. This could turn out one of two ways.

First, Vinik comes in with a lot of money and looking to turn a profit he realizes that you must spend money to make money. Bettman does the smart thing and informs him the Tampa is not a traditional market and as such, to bring in fans and make a profit, you have to make the team into a viable winner thereby making it a viable product. He spends money on the team and marketing and in time, the Lightning become a contender who can actually fill the stands. Stability returns and things start to look up, people become fans and the game spreads in a non-traditional market. A win for everyone.

or

Secondly, the NHL succeeds in pitching the team to Vinik and he ponies up the cash. He comes in and mandates salary cuts to make the team cheaper and try to make a profit out of it (what any good investor does after buying an asset, cut the unnecessary stuff). Players like Malone, Vinny and St. Louis are shopped in an attempt to cut salary, get younger and become cheaper. Very much like a Nashville type deal. While this may be good for teams looking to get better with the addition of talented veterans and getting them cheaper than market value, a sunbelt team continues on the path of cheapness. Vinik either succeeds or doesn't in making a profit and 4 or 5 years down the road the Lightning are up again for sale and that stability that Bettman wanted is gone.

There is a third option. Vinik purchases the team and in 6 months is brought up on fraud charges. Bettman again realizes he brought in an owner that is crook following recent owner patterns and the bad publicity hurts the NHL more. Knowing the NHL's luck option two or 3 is likely.

Tell me what you think.
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