The Tampa Bay Lightning have hit another rough patch on the ice, and the fallout is more severe because the stakes are a little higher here than in a lot of NHL cities.
When the players stumble as badly as they have lately, losing three of four games before rebounding with an overtime win over the Toronto Maple Leafs on Thursday, the reverberations are felt in the front office, which is walking a tightrope of its own. Oren Koules and his ownership group do not have the deepest pockets in the NHL and seeing the team finish out of the playoffs this season, for the third year in a row, would put a severe dent in the bottom line.
So, while head coach Rick Tocchet was verbally lashing his players for a lack of leadership, management was trying to deflect reports that Palace Sports and Entertainment, which holds the mortgage on the team, is growing impatient with Koules' efforts to find a new partner.
Karen Davidson, who took over Palace Sports after the death of her husband, Bill, let it be known she is looking to sell its top team, the NBA's Detroit Pistons, and speculation arose that pressure was put on Koules and the NHL to resolve the Lightning's ownership.
Koules declined to comment but sources in the NHL and the banking community say it is business as usual for the Lightning. But business as usual is fraught with uncertainty.
No deadline has been set for the addition of new investors and sources say Palace is still willing to be patient for now, but NHL commissioner Gary Bettman wants to resolve the situation as soon as possible. According to the SportsBusiness Journal, the league had to give the Lightning an advance on its revenue-sharing funds for the 2009-10 season to help meet its January payroll.
Bettman is helping in the search for new partners and has, in the words of one source, "two or three people" looking at the team. At this point, though, there is no word on how serious these prospects are.
There is also some disagreement on the state of the financing between Palace Sports and the Lightning. A report in a Detroit-area newspaper claimed the Lighting is in default on its loans to OK Hockey, the Lightning ownership's company.
When Koules and his partners bought the team in 2008, Palace Sports and a New York investment banking firm, Galatioto Sports Partners, loaned more than $100-million (U.S.) to OK Hockey. Palace Sports also guaranteed the Galatioto portion of the loan.
A banking source with knowledge of the Lightning's finances said the team is technically in default but that will not be a problem unless Palace Sports runs out of patience. The source added that Palace has not shown any signs of wanting to force the issue.
However, an NHL source insisted the team is not in default. The Lightning is still making payments on its loans, the source said.
In the meantime, the Lightning are lucky in one respect. The mediocrity of the Eastern Conference is keeping the team in playoff contention. Despite its 20-20-10 record after the Toronto game, the Lightning are just four points out of the eighth and last playoff spot.