The NHL’s Board of Governors approved a partial sale of the Lightning from majority owner Jeff Vinik to a group of investors led by Doug Ostrover and Marc Lipschultz, the team announced today. The sale was approved on Oct. 1, one week before the regular season began. David Pagnotta of The Fourth Period reports that Ostrover and Lipschultz’s group have become majority owners of the franchise by a slight margin with the transaction, which valued the Lightning at $1.8B.
Back in August, Elliotte Friedman of Sportsnet reported that Ostrover’s group was working on acquiring a majority stake. However, that’s not where discussions between him and Vinik Sports Group began earlier this year, Pagnotta said. It’s an incredible return on investment for Vinik, who purchased the franchise in 2010 at a paltry $93MM valuation (per Pagnotta) – a 21.4% rate of return over 14 years.
Per the details of the agreement made public by the Lightning, Vinik will retain full control over the team’s hockey operations department and continue serving as team governor for the next three years. That control will transfer to Ostrover and Lipschutz in 2027. According to the team, Vinik still plans on remaining with the organization as a minority owner, alternate governor, and board of directors member.
Under Vinik’s ownership, the Lightning had their most extended period of success. They’d won a championship before, defeating the Flames in the 2004 Stanley Cup Final, but weren’t a consistent championship contender from year to year. But in Vinik’s 14 full seasons as majority owner, Tampa made the playoffs 11 times, won the Stanley Cup twice (2020, 2021), and advanced to at least the Eastern Conference Final seven times total, including their Cup wins and two Stanley Cup Final losses (2015, 2022).
Ostrover and Lipschutz are founders of Blue Owl Capital, an alternative investment asset management company. The team said they were connected with Vinik through their relationship with Lightning minority ownership firm Arctos.
I think we couldn’t have asked for a better owner. Kudos to Mr Vinik.
Did a quick calculation (no guarantees):
We don’t know if the numbers are correct, but if they are, and assuming he’s selling about 51%, that equals a yearly “AAV” of about 62.1M over 14 years. (And he still owns a minority share of the franchise)
So basically he’s been earning somewhere between 70% (2024-25) and 104% (2010-11) of his team’s salary cap every year. Not that bad.
The question becomes when control is transferred to Ostrover and Lipschutz in 2027 how will they run things?…Will they be very hands on in the team’s operations (which is never good when owners are highly involved) or will they follow suit in the way Jeff Vinik has done things. This could have a major impact on the franchise in the future. I hope Ostrover and Lipschutz don’t screw things up once control is given to them as this franchise is arguably one of, if not, the best run franchise in hockey under Vinik.
Well I found my answer according to the organization itself:
“There will be no change in the day-to-day operations of the Lightning and Vinik Sports Group as a result of this agreement. Vinik Sports Group and Tampa Bay Lightning CEO and Vice Chairman Steve Griggs and Lightning General Manager Julien BriseBois will both remain in their positions and serve as Alternate Governors with the NHL. As part of the transaction, Arctos will sell a portion of its interest in the team alongside Vinik and remain a minority partner in the franchise. Ownership remains committed to providing the hockey operations team with all the resources necessary to bring the Stanley Cup back to Tampa Bay.“
Vinik was the best thing to happen to Lightning hockey. He was committed to building the team and the developing the region. Hopefully the new guys will take notes and continue. Vinik showed how to be a successful owner and how to build a committee fanbase. That should not change.