Ottawa Senators Ranked 17
130-150 million was commited to creditors they were owned over 300million Melnyk paid 92 million for the team out of his pocket
The teams value currenty according to Forbes is almost 200million
The fact is Melnyk is cheap cause he lost hundreds of million of dollars
This team is a money making machine and the guy running is cheap and is trying to make back his money off the people
http://www.forbes.com/lists/2010/31/hockey-valuations-10_Ottawa-Senators_318444.html
WOW!!!
Melnyk didn't pay $92M out of his pocket, though the team without the arena did cost $92M.
To my knowledge the exact cost for the team and arena was never made public, however reports placed that figure between $130M and $150M.
I suggest you read the numbers prior to posting a link that
doesn't support the claims.
The operating income - earnings before interest, taxes, depreciation and amortization was a negative $3.8M (LOSS).
The Debt/Value is 66%, which means Melnyk owes 66% of $196M on the team and arena or $129M.
This debt needs to be serviced, I have no idea what the terms of the loan(s) are, but assuming an interest rate of 5% ($6.5M), Melnyk lost at least $10.3M prior to paying taxes.
Sure doesn't seem like a money making machine.