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Lightning investors to pay just over $206-million (U.S.)

BRIAN MILNER

Globe and Mail Update

Latest comment posted at 10:25 PM EST 10/08/07

Team will be not saddled with debt as a result of the deal, reports Brian Milner ...Read the full article

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  1. D. Todd Caslick from Canada writes: Before we get into the 'why hockey won't work in the South' arguement, consider that over 2 million Canadians call Florida home for the part of the year that the Lightning play....
  2. Grey Stone from Montreal, Canada writes: For the life of me I can't see how owning an NHL team in a non-traditional US hockey market can be considered anything other than a vanity project for established multi-millionaires or billionaires. The article mentions the due diligence to be undertaken by the buyers, but unless the legal team uncovers some previously undisclosed revenue stream, the financial rationale for purchase hangs by the most tenuous of threads. The purchasers may "believe in its [the league's] growth story", but based on past history their optimism seems misplaced. Sure, the new owners may "have ready access to low-cost bank financing", but the acquisition has to generate profit eventually if that debt is to be paid back. Obviously I'm missing something here -- and it's more than just a couple of hundred million dollars :)
  3. Mike Dolson from Toronto, Canada writes: To Grey Stone:

    You should read Tom Benjamin's article on this topic, which is available on his blog. Essentially, NHL teams in non-traditional markets are great investments for billionaires or a group of millionaires because they are fantastic tax shelters. They have a positive net cash flow, but large paper losses. This means that the owners never actually lose real money, and end up saving on other taxes.
  4. Terry Terry from Brantford, Canada writes: Thanks Mike (and Tom), that was interesting reading.. There was a time I actually believed if I could learn to make by passes off the boards connect with a teammate, then I had hockey figured out.

    I lost interest in the NHL years ago and paid only a little attention when the playoffs rolled around (i.e., checking the scores in the morning paper). This summer I let myself get caught up in the "Hamilton Predators" mania (...got my deposit back). I'm going back on NHL snooze now. Wake me up when it's time to jump on another Toronto Maple Leaf bandwagon.
  5. Daniel Sturgis from Morocco writes: Two reasons this is a terrible move. One, The team's has lost 70 million in it's history despite winning the cup a few years back. Two, thanks to global warming, hurricanes are going to blow the arena complex to hell. If that's not enough, Florida wil be under water by the time this market ever becomes profitable.
  6. wayne babych from Harrisburg, United States writes: If those hurricanes do happen just think how much money it will cost the Canadian government to ship all those Canadian retirees corpses back to the great white north.
  7. Patrick Smith from Markham, Canada writes: My sense is that more than anything this has become some play thing for these geezers; sort of 'fantasy hockey' but with real players; little more than a 'toy' to show off "hey, lookie me...I'm a hockey team owner-can't buy one of these through Neiman-Marcus!" It defies logic that a team can win the Cup (and with a bunch of 7-game series providing extra revenues) and be back in the financial dumper, other than through tax loopholes. I might be one of those 2 million since we usually time a golf trip when the Leafs make the Florida Swing.

    Even better are the financial deals these clubs get; naming rights fees, lease terms that border on the ridiculous...
  8. Rob C from Canada writes: ...all those Canadians in 'God's Waiting Room' are, for the most part, not the ideal target audience for an NHL team - as retirees, they have limited disposable income and are not necessarily the type of folks to buy seasons tickets...I would thinks that being Snowbirds, hockey would be a pssing interest - if they're interested at all. Just my opinion - But I don't see it ever working.

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