Rumor: Ottawa Senators in for potential Ownership Change

[Caeldan]

"Melnyk insists he has lost $94-million to $110-million (numbers have varied) since buying the Senators. As Blue Jays president Paul Beeston, an accountant by training, once quipped: You can make a loss into a profit and vice versa quite quickly in sports accounting."
(Eugene Melnyk helped Senators slide further into mediocrity)

The books aren't public, so nobody without access to them really knows. I recall hearing a Melnyk quote about how the Senators need to make the playoffs to turn a profit, but I can't recall when or where he may have said it.

I believe it was around some trade deadline in the Pizza line heydays, it was more of a budget oriented question then he said that the team was budgeted to turn a profit with a first round playoff appearance.

 

[DanyHeatley]

link or sources other than senschirp?

 

[Sun God Nika]

 

[Stylizer1]

"Melnyk insists he has lost $94-million to $110-million (numbers have varied) since buying the Senators. As Blue Jays president Paul Beeston, an accountant by training, once quipped: You can make a loss into a profit and vice versa quite quickly in sports accounting."
(Eugene Melnyk helped Senators slide further into mediocrity)

The books aren't public, so nobody without access to them really knows. I recall hearing a Melnyk quote about how the Senators need to make the playoffs to turn a profit, but I can't recall when or where he may have said it.

Considering what he bought them for he's up by at least 100m.

 

[Sensinitis]

I Really hope this is true.

Imagine guys...

Having an owner that can spend to the cap... it's almost unheard of. That literally means an extra top 6 F added to this core if done correctly.

 

[Korpse]

I Really hope this is true.

Imagine guys...

Having an owner that can spend to the cap... it's almost unheard of. That literally means an extra top 6 F added to this core if done correctly.

At what cost does it mean an extra top 6 player. Those aren’t cheap wheter it’s acquired with assets or in FA. I don’t see a new ownership changing that. Maybe it means an upgrade on a role player.

 

[Sensinitis]

An upgrade on a role player can be had by trade, a top 6 forward can be had in free agency if you spend enough and don't lowball them.

 

[Korpse]

An upgrade on a role player can be had by trade, a top 6 forward can be had in free agency if you spend enough and don't lowball them.

The thing is, that’s gonna mean money and term. Which 27-30 year old are willing to sign at 6 million for the next 5-7 years.

 

[Nac Mac Feegle]

Aren't we going to hit cap just with the pay raises to Stone and Karlsson in 2 years?

 

[Gil Gunderson]

Aren't we going to hit cap just with the pay raises to Stone and Karlsson in 2 years?

Well depends if Mac LTIRetires.

 

[Tnuoc Alucard]

Eugene Melnyk has stated many times that he has no interest, and is not even mildly considering the sale of the Senators, and stated that he plans to pass on the ownership to his Daughter in the event of his death.

Let's remember that the Senators, as a team, is a separate entity, and ran as such. Eugene Melnyk owns the CTC and the profits made from the operating the building, including the rent the Senators pay to play in the Building that Eugene Melnyk owns and operates, has nothing to do with any "profit" the Senators make from their home games in the CTC.

All owners, if they're smart, operate their teams separately from any other related revenue generating operations.

The Senators only report their Hockey related revenue, to the NHL for Salary Cap calculations, and business and operating expenses (rent, travel costs etc) all factor into whether or not the "Team" is turning a profit.

This Rumour, of a potetial sale of the Senators, in whole or in part is just wishful thinking on someone's part, and no credence should be given to it....... as it's baseless.


Senators owner Eugene Melnyk reiterates he has no interest in selling his team

 

[Spezza]

This Rumour, of a potetial sale of the Senators, in whole or in part is just wishful thinking on someone's part, and no credence should be given to it....... as it's baseless.

Generally yes - but its a semi-credible source saying its an 'open secret'.
I wouldn't say its entirely baseless - although he did get Jason Williams wrong all those years ago!

 

[Fandlauer]

We could not win another game all year, but I would still consider this season to be a resounding success if this transpires.

 

[Tuna99]

I can’t see the Desmarais/Laliberte group going in at 50% with Melnyck. They don’t want to do business with this guy, he’s not in the same class as them and isn’t someone they’d tie their ship to and have speak out for the group.

I don’t see this as possible, the Quebec group has billions and I don’t see them buying half a team. They’d want all of nothing.

 

[BatherSeason]

At what cost does it mean an extra top 6 player. Those aren’t cheap wheter it’s acquired with assets or in FA. I don’t see a new ownership changing that. Maybe it means an upgrade on a role player.

Really has nothing to do with an added player, biggest plus with an ownership change is the hopeful upgrade to Hockey Ops. We now have the smallest scouting staff in the league and honestly, having Dorion/Lee as the only voices in a room when big decisions are being made is quite concerning.

 

[thinkwild]

It seems hard to reconcile his stated woes of losing a hundred million dollars and needing to go deep into the playoffs each year to make a profit with his unwillingness to sell the team and plans to allow his daughter to inherit it. Either he isnt really concerned about passing on such a money losing proposition to his kids or those numbers dont accurately represent the wealth he accumulates from owning it.

But building the rink downtown is just a small part of the overall downtown development project he will need financing for and it is possible he needs someone able to raise that kind of money to help out with all the non-arena portions of development of the area. That could be close to 75% of the development. When the Tampa owner was selling his team he had to lend the money to the buyers. Borrowing that kind of money has proven difficult in the past years for many sports team buyers. Euge may not look like the greatest credit risk to many bankers.

One of the wonderful perks Sports owners used to be able to get from taxpayers (i dont know if it still applies or not) was the ability to depreciate their team payroll over the first years of buying a team. That alone could make the team quite a bit more profitable for a new owner.

Remember when Melnyk bought the team, saying he was rich and would spend to the cap and would end the teams days of debt. The optimism that came from that and his spending had an effect on ticket sales. Just as how winning the Sydney lottery did for Pittsburgh. Perceptions can affect ticket sales.

 

[BatherSeason]

link or sources other than senschirp?

The majority of Sens twitter-verse seemed to state that they have all heard the same thing. No one went into any further details though.

 

[inthewings]

OMG, yes please for the love of god

 

[Silencio]

The majority of Sens twitter-verse seemed to state that they have all heard the same thing. No one went into any further details though.

Yep, majority of people who claim to have heard something say it's the Cirque group with Alfie as face of the ownership bid. Hopefully where there's smoke there's fire...

 

[Korpse]

Really has nothing to do with an added player, biggest plus with an ownership change is the hopeful upgrade to Hockey Ops. We now have the smallest scouting staff in the league and honestly, having Dorion/Lee as the only voices in a room when big decisions are being made is quite concerning.

I understand that and see how it could be beneficial, the point was made that it would mean an extra top 6 forward, I don't believe thats true.

 

[Viletho]

Serious question, i am not living near Ottawa, so i don't know how it is in Ottawa.

If a new owner were to buy the Sens.. will the arena be full or near full because of it, if it stays in Kanata?

Or do they need the team to be move downtown for them to have success?

There is a lot of you guys saying with new owner we will spend to the caps, bigger front office, etc. On paper it seems fair to think that. But if the arena isn't near full.. At some point they are going to lose money with the Sens.

I'm just curious has if a new owner will trigger something in some people that will make them want to go to game more.

 

[BatherSeason]

I understand that and see how it could be beneficial, the point was made that it would mean an extra top 6 forward, I don't believe thats true.

We spent too much money on veteran depth pieces and now only have 2 mill in cap space left anyways, so new ownership would be very handcuffed.

Hopefully Alfie is the figurehead coming in with the new ownership group and hopefully the second biggest reason for Alfie leaving was that he didn't agree with the direction Boucher/Dorion were going with this and they clean house. Then we may see things like Ceci moved and less 4th line guys with NTCs and more youth being introduced to the lineup.

 

[Tnuoc Alucard]

Serious question, i am not living near Ottawa, so i don't know how it is in Ottawa.

If a new owner were to buy the Sens.. will the arena be full or near full because of it, if it stays in Kanata?

Or do they need the team to be move downtown for them to have success?

There is a lot of you guys saying with new owner we will spend to the caps, bigger front office, etc. On paper it seems fair to think that. But if the arena isn't near full.. At some point they are going to lose money with the Sens.

I'm just curious has if a new owner will trigger something in some people that will make them want to go to game more.

No, the team needs to move to Lebreton Flats, and be built practically on top of the new (in 2018) Light rail transit line.

 

[Korpse]

We spent too much money on veteran depth pieces and now only have 2 mill in cap space left anyways, so new ownership would be very handcuffed.

Hopefully Alfie is the figurehead coming in with the new ownership group and hopefully the second biggest reason for Alfie leaving was that he didn't agree with the direction Boucher/Dorion were going with this and they clean house. Then we may see things like Ceci moved and less 4th line guys with NTCs and more youth being introduced to the lineup.

They also have 4.65 million available in LTIR relief if they needed it.

That scenario likely isn't an option if Melnyk remains in the picture, and from what I know about the rumours seems most likely, if any of it is even true. Also I think if more people considered the short term plan they would understand why players like Thompson, Burrows and Oduja were brought in and given a ten team no trade list.

 

[tony d]

Good news. Melnyk's been a decent enough owner but it's time to move on and get some new ownership to this team.