Lightning losing -- cash, at least

Palace Sports & Entertainment reportes a $9-million loss on the team, unless a deep playoff run happens.

By DAMIAN CRISTODERO
Published April 13, 2007

EAST RUTHERFORD, N.J. - The Lightning's parent company, Palace Sports & Entertainment, has revised its financial picture for the fiscal year and says it will lose $9-million on its Tampa operation even with Tampa Bay participating in a playoff round.

PS&E previously said the $9-million loss would be for the regular season.

Even so, team president Ron Campbell said the gloomy picture will not force the team's payroll next season below the previously stated $40-million.

That is about $3-million less than this season and perhaps as much as $8-million below next season's league salary cap, though the cap has yet to be determined.

"In effect, our fiscal year, even though it's not pretty, is behind us," Campbell said of the accounting period that ends June 30. "We've just got to be smarter. We have to do better. But we're not going to determine our payroll for next year depending on how this year turns out."

The company, owned by Michigan tycoon Bill Davidson, claims losses of $67-million since buying the Lightning and the St. Pete Times Forum lease in the summer of 1999.

Campbell said the impact of the playoffs is twofold.

If Tampa Bay plays two rounds, revenue will get PS&E closer to what it has said is an acceptable $5-million deficit. There also is the value of perception.

"The playoffs are like an intangible asset," Campbell said. "The more success we have, the more people want to be associated with you. You can't quantify that today but with every game that you last, there is much more affinity with fans and corporate sponsors to be part of the family."

Campbell said season-ticket renewals as of April 1 were 65 percent, much better than the 45 percent at that time last year.

He also reiterated the team is committed to keeping stars Vinny Lecavalier, Brad Richards, Marty St. Louis and Dan Boyle, though they will eat up about $23-million in salary. He said the Lightning would be "crazy," given those assets, not to provide enough resources to stay a Cup competitor.

"How many guys come along like that?" Campbell said.

Campbell said he hopes increased revenue from league merchandising and television, and from ticket sales and local corporate sponsors, will help.

"No one is saying, 'Don't increase the payroll,' " he said. "But we have to continually grow our business to support that. If we keep growing and have success with season ticket renewals and if we can find other ways to grow our revenues, it will all go into player salaries, no question."

[Last modified April 13, 2007, 06:56:56]