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07-17-2013, 12:59 PM
  #851
Fugu
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Quote:
Originally Posted by Major4Boarding View Post
Adding - With Mr. Vinik's purchase of the Lightning, it too was due to the complexities of the deal. Assumption of debt - i.e. team debt (and maintenance lapses) and what was still owed by the "original" clowns to the Davidson family (they financed half of the original deal with Koules/Barrie).

Perhaps it's the referendum phase? Once that referendum deadline passes then the announcement will be made.
I don't believe Vinik assumed any debt, but he did assume payroll and operating costs from January onwards. Palace Sports was financing OK Hockey, along with another secured creditor from NY (name escapes me now), but PSE was holding the team as security and had financed nearly half of what OK had set as the purchase price. In the case of a default (which is what happened), Palace got control back, and sold to Vinik for a rumored $90-100 MM. As you know, Davidson's heirs simply wanted to divest themselves of all his sports properties.

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