Management Eugene Melnyk - Lawsuits, rants and more... Part Deux

[GCK]

No, but a new owner may actually hire people to effectively run the operation. More scouts, an assistant GM not named Eugene, a POHO, etc.

New owner won’t solve the rink location and corporate limitations.

 

[Larionov]

The Toronto Blue Jays are owned by Rogers, and they flatly refuse to have a payroll in the upper end of MLB. The Boston Red Sox have a wealthy billionaire owner in one of baseball's best markets, and they let their best player walk this off season rather than pay him a salary that would have seen them hit with a heavy luxury tax. The lesson here is that even if we got an owner with deeper pockets than the current one, there is no guarantee that we would be a cap team with a sprawling front office. The dream, of course, is to land an owner like the late Mike Ilitch, who treated everyone like family, spent whatever it took to keep his teams competitive, etc. There aren't too many of those people around...

 

[BatherSeason]

how you know that ? ours two owner have never make money, why the new one gonna spend to the cap and hire a big front office

New owner won’t solve the rink location and corporate limitations.

I cant believe that some think status quo is better than someone new owning the team. Its virtually impossible for it to be worse than it is, so I would rather side with the unknown that a new owner could bring here. At least more people would go to games and maybe the bullsh**ting would stop.

 

[GCK]

The next owners might be willing to do just that.

History of ownership in Ottawa pro sports does not make me hopeful.

 

[GCK]

I cant believe that some think status quo is better than someone new owning the team. Its virtually impossible for it to be worse than it is, so I would rather side with the unknown that a new owner could bring here. At least more people would go to games and maybe the bullsh**ting would stop.

So to be clear my order of preference are

1. New owner who wants to lose money AND has an extra half billion to build a downtown rink in a city which will make that almost impossible. (Jumbo Jim ).

2. Team is sold and relocated to a place with tax dollars for a rink and corporate base which can expense entertainment.

3. Team is sold and we get another owner who needs to at worst break even.

4. Team folds outright.

5. Status quo

 

[Sensung]

how you know that ? ours two owner have never make money, why the new one gonna spend to the cap and hire a big front office

I don’t know it, but it is a realistic possibility.

If they don’t load the team with debt, they’ll be using a different business model than the last two owners.

The Jets new owner spends to the cap and previous owners wouldn’t. Tampa Bay changed owners and increased spending. It happens.

New owners might view the team as a loss leader to attract fans to a new downtown development and be willing to sustain a high budget to make their overall business work.

 

[Crosside]

I cant believe that some think status quo is better than someone new owning the team. Its virtually impossible for it to be worse than it is, so I would rather side with the unknown that a new owner could bring here. At least more people would go to games and maybe the bullsh**ting would stop.

never said status quo is better but I don t expect new owner spend to the cap

 

[Crosside]

I don’t know it, but it is a realistic possibility.

If they don’t load the team with debt, they’ll be using a different business model than the last two owners.

The Jets new owner spends to the cap and previous owners wouldn’t. Tampa Bay changed owners and increased spending. It happens.

New owners might view the team as a loss leader to attract fans to a new downtown development and be willing to sustain a high budget to make their overall business work.

better answer

 

[BonHoonLayneCornell]

Can we at least get an owner that doesn't have an ego the size of the sun that drives out players and any staff member willing to ask hard questions or point out the real issues?

Maybe one that also sees the importance of investment in to things like hiring qualified coaching and management. How about a guy that doesn't clash with everyone in Ottawa and is actually willing to work WITH these people that he needs for the success of the team.

How about one with the financial wherewithal to deal with the ebbs and flows of the financial realities of year to year operation.

His overbearing influence on the overall philosophy of the organization is a much larger issue than any lack of spending on player salaries.

I really question his plan here. It's like he thinks a couple shiny picks and all will be forgotten, but I don't see it playing out that way, it went to far.

Even if they won a cup, he'd be booed heavily if he tried to include himself.

 

[Masked]

New owner won’t solve the rink location and corporate limitations.

No but it will solve the franchise's biggest problem - a penny pinching owner that alienates the fanbase with idiotic public statements.

 

[BonHoonLayneCornell]

Also, what a bad look needing to go on Toronto radio, so that you can control the interview and avoid any real questions.

Just kick them off your team plane and threaten to bury them while you're at it.

Talk about soft.

 

[Pancakes Pancakes]

Man, why can't we have local Ottawa Billlionaire Tobias Lutke just buy the team. Worth $6.5B....and basically increasing everyday. Will probably be worth over $10B in the not so distant future. Seems like he will need a toy to play with (other than video games).

 

[Sensung]

Man, why can't we have local Ottawa Billlionaire Tobias Lutke just buy the team. Worth $6.5B....and basically increasing everyday. Will probably be worth over $10B in the not so distant future. Seems like he will need a toy to play with (other than video games).

It is to dream.

 

[BonHoonLayneCornell]

Man, why can't we have local Ottawa Billlionaire Tobias Lutke just buy the team. Worth $6.5B....and basically increasing everyday. Will probably be worth over $10B in the not so distant future. Seems like he will need a toy to play with (other than video games).

At this point, he appears to be doing it to simply try to stick it to Sens fans and not give them what they want. Likely in response to all the #MelnykOut stuff.

 

[IlTerrifico]

Man, why can't we have local Ottawa Billlionaire Tobias Lutke just buy the team. Worth $6.5B....and basically increasing everyday. Will probably be worth over $10B in the not so distant future. Seems like he will need a toy to play with (other than video games).

Even if he didn't buy the team, how about if he announces he will buy $5M in tickets for employees in seasons after the Sens get 95 points or more.

Think of the angst for Gene that cheaping out would cost him that cash plus all the additional sales at the rink it would entail. That stress alone could....speed up the process.

 

[Nac Mac Feegle]

If the league has a problem with their business model, then they should solve it.

They could divide revenue up 40/40 and set aside 20% for a building renewal/replacement program. Let each of them make the case to each other that they need new buildings.

That is a really good idea. I would say even 5-6% of revenues would cover it.

I don't think businesses should be subsidized by the government (through I recognize that it is prevalent in a lot of industries which creates an arms race). Taxpayers should not be forced to support sports teams in general. That said, in conjunction with city planning and job creation strategies, a new arena can be a positive thing for a city, provided it is done in a reasonable manner. The jobs and taxes from a sports team (or the revitalization that can occur if a stadium is built in the right spot) can be really beneficial.

I don't mind tax deferrals based on some sort of metric. Jobs, taxes, revenues, etc.. Similarly, if revenues exceed certain targets, maybe the tax deferrals end or something. Something that it makes it easier to get it built because the city is taking on some of the risk. Hell, maybe even the city could build it with an agreement from Melnyk to lease it for the Sens. I just don't want city funds paying for Melnyk to build a stadium and then own it himself. That is a bridge too far.

Definitely. Lower property tax if you employ 100+ workers, city/province funds things like the LRT stop to the building (and *cough* overpass to an arena *cough*), regular stuff like that. Same thing they do with a lot of other business.

Things that make sense. Not the crazy that's going on in Alberta with the cities basically gifting $500+ million to teams that make a ton of profit.

 

[Speatleysson]

So to be clear my order of preference are

1. New owner who wants to lose money AND has an extra half billion to build a downtown rink in a city which will make that almost impossible. (Jumbo Jim ).

2. Team is sold and relocated to a place with tax dollars for a rink and corporate base which can expense entertainment.

3. Team is sold and we get another owner who needs to at worst break even.

4. Team folds outright.

5. Status quo

Why? Why the heck would you want that over #3.. I'd prefer status quo over that.

The sens don't need to break the bank to have success, but they have to spend a heck of a lot more than what they are doing now obviously. The new arena? Why is that even a priority?
People seem to think that if you took the current team, and played them in a new arena in Lebreton, that they'd have a huge turnout.

The sens always had a great turnout with good product on the ice. With Kanata being built up the way it is now, if they had a team like they did when they went to the finals, the arena would be over 90% filled.

 

[GCK]

Why? Why the heck would you want that over #3.. I'd prefer status quo over that.

The sens don't need to break the bank to have success, but they have to spend a heck of a lot more than what they are doing now obviously. The new arena? Why is that even a priority?
People seem to think that if you took the current team, and played them in a new arena in Lebreton, that they'd have a huge turnout.

The sens always had a great turnout with good product on the ice. With Kanata being built up the way it is now, if they had a team like they did when they went to the finals, the arena would be over 90% filled.

I am a massive Raiders fan, I’ll be going to Vegas to catch a game. If the Sens relocated to Houston I could watch every game, follow media and even fly down to catch a 3 game home stand. If you aren’t going to live games what’s the difference.

 

[Speatleysson]

I am a massive Raiders fan, I’ll be going to Vegas to catch a game. If the Sens relocated to Houston I could watch every game, follow media and even fly down to catch a 3 game home stand. If you aren’t going to live games what’s the difference.

Well, I live about 600km outside of Ottawa, but I always make 2-3 games per season

My point is that relocating the team is not necessary, they just have to put a better product on the ice to attract Ottawans to the games. Unfortunately, there is just not enough corporate sponsorship to fill the seats, so they need good play to get families to spend more money; it's hard enough getting anyone in Ottawa to support a local sports team

 

[Nac Mac Feegle]

I am a massive Raiders fan, I’ll be going to Vegas to catch a game. If the Sens relocated to Houston I could watch every game, follow media and even fly down to catch a 3 game home stand. If you aren’t going to live games what’s the difference.

I really don't see any non-traditional US markets looking for an NHL team in the near future. The economy is going to be pretty soft for the next few years.

Best bet is for a bigwig developer (hopefully Canadian) to see what a goldmine the Flats are, and make a run at both the potential condos, and an entertainment complex in the area. Jimmy may be a goofball, but he and the NCC will definitely work with a new owner.

 

[Stylizer1]

Breaking down the Melnyk interview

Thoughts in Bold: Melnyk Speaks on the Fan 590


His strategy was simple: he wanted a new stadium that the taxpaying community would pay for.
Like many other owners of the era, he wanted to portray his baseball organization as poor to create imbue the notion that unless his team received a new building, they would never be able to create and sustain long-term success.
To generate sympathy and rally more fans behind his cause, Huizenga had the idea to spend frivolously between 1995 to 1997 to try and deliver a World Series so that he could have an easier time with his publicly-subsidized stadium efforts as fans were caught up in the championship honeymoon period.
In 1997, the Marlins won the World Series and a few short weeks after, they dealt Moises Alou. He was the first casualty of Huizenga’s scheme that eventually saw players like Robb Nenn, Bobby Bonilla, Al Leiter, Kevin Brown, Gary Sheffield, Charles Johnson, Devon White and Jeff Conine move on.
Huizenga literally tore down a championship roster in the pursuit of a new stadium.
Interestingly, the remnants of a few of these trades eventually wound up helping the Marlins win another World Series in 2003, so for Melnyk to say that a teardown of this magnitude has not been done before is a bit disingenuous

This has nothing to do with the interview.

 

[GCK]

I really don't see any non-traditional US markets looking for an NHL team in the near future. The economy is going to be pretty soft for the next few years.

Best bet is for a bigwig developer (hopefully Canadian) to see what a goldmine the Flats are, and make a run at both the potential condos, and an entertainment complex in the area. Jimmy may be a goofball, but he and the NCC will definitely work with a new owner.

I’m not convinced that the NCC’s plan to split the development into pieces will encourage the same type of deal. Each piece could go to a different bidder is the way I read the situation. I have a feeling we will be at the same point with the flats in 24?months.

 

[angrydad]

I am a massive Raiders fan, I’ll be going to Vegas to catch a game. If the Sens relocated to Houston I could watch every game, follow media and even fly down to catch a 3 game home stand. If you aren’t going to live games what’s the difference.

[mod] What if they move to Quebec City instead of Houston. Posting that you want relocation on a forum where the majority of the fans live in Ottawa clearly isn't going to be met with support. Go ahead and argue about how they will be supported if they moved, previous posters have already pointed out about how ownership can change how a team operates for the better if they stay in the same city (Tampa, Edmonton, Carolina, Anaheim)

 

[GCK]

What if they move to Quebec City instead of Houston. Posting that you want relocation on a forum where the majority of the fans live in Ottawa clearly isn't going to be met with support. Go ahead and argue about how they will be supported if they moved, previous posters have already pointed out about how ownership can change how a team operates for the better if they stay in the same city (Tampa, Edmonton, Carolina, Anaheim)

Quebec City is a terrible market. The NHL knows that, which is why they will keep being bypassed.

Tell me what the difference is between the team playing in Ottawa or Houston. The vast majority of fans don’t attend live games, and if it’s just one or two a year, a quick trip to Montreal gets your Houston Senators fix.

 

[Masked]

Quebec City is a terrible market. The NHL knows that, which is why they will keep being bypassed.

Tell me what the difference is between the team playing in Ottawa or Houston. The vast majority of fans don’t attend live games, and if it’s just one or two a year, a quick trip to Montreal gets your Houston Senators fix.

The vast majority would like to attend live home playoff games. They'd like to attach flags for the hometown team to their cars during a long playoff run. They'd like to have the local media cover the team.

Saying that the team moving to Houston would make no difference to fans is asinine.