By all accounts, the Lightning's plunge to the bottom of the NHL was due to the way Kokusai Green ran the team. Rumors abounded as early as the team's second season that the Lightning were on the brink of bankruptcy and that the team was part of a money laundering scheme for the yakuza (Japanese crime families).[6] Its scouting operation consisted of Tony Esposito and several satellite dishes. The Internal Revenue Service investigated the team in 1994 and 1995, and nearly slapped a lien on the team for $750,000 in back taxes. The situation led longtime NHL broadcaster and writer Stan Fischler to call the Lightning a "skating vaudeville show".[7]
Even in their first playoff season, the team was awash in red ink and Kokusai Green was looking to sell at any price. However, the sale was hampered by the team's murky ownership structure; even some team officials (including Crisp) didn't know who really owned the team.[6] Another problem was that Kokusai Green initially demanded $230 million for the team, including the lease with the Ice Palace.[7]
It later emerged that Kokusai Green's owner, Takashi Okubo, had never met with Esposito or with NHL officials in person prior to being awarded the Lightning. During his seven years as owner, Okubo never watched his team play, and never even visited Tampa. Esposito never met him personally in his hunt for investors, for instance. Nearly all of Kokusai Green's investment in the team and the Ice Palace came in the form of loans, leaving the team constantly short of cash.[3] At least one prospective buyer pulled out after expressing doubts that Okubo even existed.[6] In fact, the first time anyone connected with the Lightning or the NHL even saw Okubo was in the spring of 1998. Many of Esposito's trades came simply to keep the team above water. The team's financial situation was a considerable concern to NHL officials; rumors surfaced that the league was seriously considering taking control of the team if Okubo failed to find a buyer by the summer of 1998.[7]
Forbes wrote an article in late 1997 calling the Lightning a financial nightmare, with a debt equal to a staggering 236% of its value—the highest of any major North American sports franchise. Even though the Ice Palace was built for hockey and the Lightning were the only major tenant, Forbes called the team's deal with the arena a lemon since it would not result in much revenue for 30 years. It was also behind on paying state sales taxes and federal payroll taxes.[8]