PWTorch and Pro Wrestling Dot Net have independently confirmed that Sky is currently on her way out of TNA. Jason Powell has stated that a number of TNA stars are in negotiations for contract restructuring although Velvet Sky may not be one of them. Nonetheless, it is said that negotiations between TNA and Sky aren't going well.
The Verdict: I don't know what the hang-up is between Velvet Sky and TNA is at this time. Sky was being built creatively as one of the biggest faces in the Knockouts Division. It was only until recently that Brooke Tessmacher leap-frogged her. The one person I see really benefiting from this is Tara.