Why does Melnyk own a sports team?

[Agent Zub]

I question this all the time. You shouldn't own a pro team if you can't spend an extra 5 million to make sure your team is a contender. 5 mill should be nothing to owners

Furthermore why doesn't he bring in partners for the good of the franchise if he is poor?

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[Benjamin]

You'd have to ask him. He can do what he wants.

 

[Engineer]

To post a strawman, the Panthers have a new billionaire owner and it's public knowledge that their budget is $65M this year, Sens aren't the only team with budgets

 

[Ouroboros]

It's his team and he can set the budget at whatever he wishes, so long as it exceeds the cap floor. He can go as cheap as he pleases for the front office, coaching, etc.

You don't have to be a fan. Sometimes I wonder why I'm one myself.

 

[WadeRedden]

I question this all the time. You shouldn't own a pro team if you can't spend an extra 5 million to make sure your team is a contender. 5 mill should be nothing to owners

Furthermore why doesn't he bring in partners for the good of the franchise if he is poor?

Probably because he's a control freak and business partners could reduce his influence. even if he maintains a majority stake the potential for his partners to undermine his influence would still exist.

Honestly, I have no problem with the Sens being a budget team. We play in one of the smaller Canadian markets and we don't have the corporate support that markets like Toronto, Vancouver and Montreal enjoy because Ottawa is a government town. Plus, the Canadian dollar is in the tank and shows no signs of improving. I just wish we'd own our identity as a small market, budget team and use our money more efficiently.

 

[ZekeA]

Probably because he's a control freak and business partners could reduce his influence. even if he maintains a majority stake the potential for his partners to undermine his influence would still exist.

Honestly, I have no problem with the Sens being a budget team. We play in one of the smaller Canadian markets and we don't have the corporate support that markets like Toronto, Vancouver and Montreal enjoy because Ottawa is a government town. Plus, the Canadian dollar is in the tank and shows no signs of improving. I just wish we'd own our identity as a small market, budget team and use our money more efficiently.

"WadeRedden":

I agree Melnyk is a control freak and he got a Hell of a deal when he bought the team and the building!!!!!!! As to how much the team makes or loses each season is blurred as he owns both....... I would never be a partner in any business with him as he is a bit shady in his business dealings.....

 

[Filatov2Kovalev2Bonk]

Melnyk is like my cousin Jack. He has the big new sports car, the big radio and all that but he has to work too much for such things. It's basically a toy for show to cover his lack of acumen.

Melnyk owns the Senators because it lets him spout off to a captive audience (media) and puts him in the public eye. He's a showboat with very little depth, financial or reflection-wise.

 

[L'Aveuglette]

Melnyk is like my cousin Jack. He has the big new sports car, the big radio and all that but he has to work too much for such things. It's basically a toy for show to cover his lack of acumen.

Melnyk owns the Senators because it lets him spout off to a captive audience (media) and puts him in the public eye. He's a showboat with very little depth, financial or reflection-wise.

How much do we owe you, doctor Freud?

 

[Filatov2Kovalev2Bonk]

How much do we owe you, doctor Freud?

Just some insightful comments over the next season will more than suffice, thank you.

 

[Pierre from Orleans]

Melnyk is like my cousin Jack. He has the big new sports car, the big radio and all that but he has to work too much for such things. It's basically a toy for show to cover his lack of acumen.

Melnyk owns the Senators because it lets him spout off to a captive audience (media) and puts him in the public eye. He's a showboat with very little depth, financial or reflection-wise.

You don't become a billionaire by having little depth

 

[Do Make Say Think]

I question this all the time. You shouldn't own a pro team if you can't spend an extra 5 million to make sure your team is a contender. 5 mill should be nothing to owners

Furthermore why doesn't he bring in partners for the good of the franchise if he is poor?

I don't think you understand how business works if you think it's just about the owner dumping millions of his own money.

 

[HavlatMach9]

I question this all the time. You shouldn't own a pro team if you can't spend an extra 5 million to make sure your team is a contender. 5 mill should be nothing to owners

he has been doing that when we re-signed a lot of our players to new contracts years back

 

[PoutineSp00nZ]

man some of you will use any excuse to bash melnyk

 

[JD1]

I question this all the time. You shouldn't own a pro team if you can't spend an extra 5 million to make sure your team is a contender. 5 mill should be nothing to owners

Furthermore why doesn't he bring in partners for the good of the franchise if he is poor?

why do you also post nonsense? or fake news as it's called today.

Melnyk isnt poor. Melnyk's net worth is 1.2 billion. He's self made too by the way which means he earned that money.

 

[DueDiligence]

I question this all the time. You shouldn't own a pro team if you can't spend an extra 5 million to make sure your team is a contender. 5 mill should be nothing to owners

Furthermore why doesn't he bring in partners for the good of the franchise if he is poor?

Because he can and you cant!

 

[RedWhiteBlackGold]

He has the money, and is a fan. Can't blame him for that. Ottawa doesn't have the luxury of having corporate sponsors. He definitely seems too involved than I'd like him to be, but he writes the pay cheques so not much i can say.

 

[Stylizer1]

The reason is because he got a building and land around it and a team for less than 100 million dollars when he was wealthy.

 

[Jerrico]

Honest questions...has anyone tried an anti melnyk chant yet? If that caught on every single game, the optics would not be good for him at all. "Eu-gene. Sell the team" not great, but I had a couple beers too many last night so that's my excuse.

 

[Nac Mac Feegle]

wow....nasty thread.

As for the question at hand, RWBG got it. Melynk is a big hockey fan with deep pockets (or had deep pockets when he bought the team at a deep discount). I'd be willing to guess, he also saw a huge business opportunity by getting an NHL team in a Canadian market for pennies on the dollar (with arena and massive amounts of extra land included).

With revenue sharing and the incredible increases in ticket prices and tv deals over the years, any competent business owner should be swimming in profits by now.

 

[Jerrico]

Honest questions...has anyone tried an anti melnyk chant yet? If that caught on every single game, the optics would not be good for him at all. "Eu-gene. Sell the team" not great, but I had a couple beers too many last night so that's my excuse.

 

[Nac Mac Feegle]

Honest questions...has anyone tried an anti melnyk chant yet? If that caught on every single game, the optics would not be good for him at all. "Eu-gene. Sell the team" not great, but I had a couple beers too many last night so that's my excuse.

Not sure if this would be a good time to sell. Maybe the financial savvy folks on here could chime in on that.

Way I see it, Melynk refinanced so many times (and with poor terms) that the debt is still really high....we're playing out of an older arena with less value....the tech bust makes the land in Kanata less attractive (I would assume) to have as an asset...and you're looking at a looming $300 million (at least) cost for a new arena....no "new" income (like prepping for a new bigger tv deal or anything like that) on the near future.....

....doesn't feel like a good financial investment to me, right now. Correct me if I'm wrong here.

 

[Jerrico]

Not sure if this would be a good time to sell. Maybe the financial savvy folks on here could chime in on that.

Way I see it, Melynk refinanced so many times (and with poor terms) that the debt is still really high....we're playing out of an older arena with less value....the tech bust makes the land in Kanata less attractive (I would assume) to have as an asset...and you're looking at a looming $300 million (at least) cost for a new arena....no "new" income (like prepping for a new bigger tv deal or anything like that) on the near future.....

....doesn't feel like a good financial investment to me, right now. Correct me if I'm wrong here.

You're probably 100% right. Just wishful thinking on my part.

 

[Agent Zub]

why do you also post nonsense? or fake news as it's called today.

Melnyk isnt poor. Melnyk's net worth is 1.2 billion. He's self made too by the way which means he earned that money.

If he isn't poor than he's cheap. Is that better?

He's the modern day Bill Wirtz. Look how succefull the Blackhawks became after Wirtz passed away.

and **** me for wanting the best for a team i cheer for right?

 

[JD1]

Not sure if this would be a good time to sell. Maybe the financial savvy folks on here could chime in on that.

Way I see it, Melynk refinanced so many times (and with poor terms) that the debt is still really high....we're playing out of an older arena with less value....the tech bust makes the land in Kanata less attractive (I would assume) to have as an asset...and you're looking at a looming $300 million (at least) cost for a new arena....no "new" income (like prepping for a new bigger tv deal or anything like that) on the near future.....

....doesn't feel like a good financial investment to me, right now. Correct me if I'm wrong here.

Forbes last assessment placed the value of the team at 355M. I believe the debt number is around 150M. So that's 205M in equity. Rumour was Melnyk paid 125 for the team/building. 50 down / 75 financed. so his equity has risen from 50M to a little over 200. In the dozen or so years of his ownership that's a pretty good return.

Could he sell it? Sure. Team and league revenues are way up and there's likely plenty of revenue to support someone swooping in with 100M down and financing the rest. The 12 to 15 year return won't be in Melnyk's range but it's certainly viable. But most playboys don't but a sports franchise to make money anyway.

I don't get the fuss over Alfie leaving. It isn't as though hiring former team stars has led to paving the streets with gold. How did that work out for Katz in Edmonton? Or with Linden in Vancouver?

As for Melnyk being poor / cheap. Meh. I think he's running the team to live within its revenue streams. Not sure I can fault him for that.

 

[Cheapseats]

He's a horrible person to work for and the org is run like a Burger King. Front office is a gong show. Alfie just walked because of all the BS