News Article: Lebreton project

[coladin]

Bryden was trying to get it back with the help of another billionaire. He bankrupted the team but kept ownership of the arena, and then tried to put another offer back in to buy the team, but Melnyk must have outbid him, or maybe the NHL was just tired of Bryden. It wasn't like Bryden was losing 100m. The team had lost the money and Bryden didn't help by charging the team a ridiculous lease amount to make the arena more profitable and drive up the team debt. Could be wrong but this is how I remember it.

I read in the OBJ that he lost 100M of his own money, declared bankruptcy and settled for a mere 600,000 .

 

[NorthCoast]

I read in the OBJ that he lost 100M of his own money, declared bankruptcy and settled for a mere 600,000 .

My bad then. I do find it hard digesting this info sometimes when I read that that the team went bankrupt, but the arena was sold as part of the deal, and part of the reason the team went bankrupt is a bad lease with the arena...and Bryden owns both. But whatever, no doubt that things went south and he probably lost tens of millions.

 

[coladin]

My bad then. I do find it hard digesting this info sometimes when I read that that the team went bankrupt, but the arena was sold as part of the deal, and part of the reason the team went bankrupt is a bad lease with the arena...and Bryden owns both. But whatever, no doubt that things went south and he probably lost tens of millions.

62 cent dollar was a huge factor too...

 

[Micklebot]

62 cent dollar was a huge factor too...

62 cent dollar combined with much higher interest rates than today and massive debt jump started by ~80 mil more than expected about 10 years earlier thanks to a snap election and reneged promises. Deck was stacked against the team pretty badly back then and there was no massive TV contracts, though that's balanced out by not having a cap floor.

 

[Nac Mac Feegle]

62 cent dollar combined with much higher interest rates than today and massive debt jump started by ~80 mil more than expected about 10 years earlier thanks to a snap election and reneged promises. Deck was stacked against the team pretty badly back then and there was no massive TV contracts, though that's balanced out by not having a cap floor.

...and Ottawa wasn't the only team teetering on the edge at that time. I don't think people understand how close we were to losing half the NHL teams in Canada.

 

[Wondercarrot]

HAHAHHA....respected. This guy is one of the greasiest sales guy in the city. In fact, his reputation is so bad and tarnished that he will never be able to swindle anyone for another penny. He is known in circles as the snake oil salesman. The only thing he was professional at was swindling people for hundreds of millions. Why don't you ask the city of Ottawa officials what they think of him when he sheistered them with Plasco?? Your hatred for EM is so obvious when you spew out unfounded comments about his reputation. Its also very obvious that you have no business acumen when talking about the most dishonest human in the city of ottawa and uhhhh country.

Rod Bryden has indeed screwed over a ton of people. Now since you brought up what the people at the city of Ottawa think of him - (and I agree)
Now, why don't you ask the people at the City of Ottawa, the rest of the Rendez-Vous LeBreton Group, and the NCC what they think of Eugene Melnyk?
ill wait.

 

[mysens]

Rod Bryden has indeed screwed over a ton of people. Now since you brought up what the people at the city of Ottawa think of him - (and I agree)
Now, why don't you ask the people at the City of Ottawa, the rest of the Rendez-Vous LeBreton Group, and the NCC what they think of Eugene Melnyk?
ill wait.

I won't let you wait long. I am not a EM lover who thinks he can do no wrong. I pop up to defend his stance on his business model, to pay his business with the revenue he brings. Many if not all haters want him to produce money from his other sources with no support from the fans. I have no doubt that the City of Ottawa probably thinks of him as a cochroache . But he has not swindled his investors like Bryden did. Yet anyway.

 

[Knave]

I won't let you wait long. I am not a EM lover who thinks he can do no wrong. I pop up to defend his stance on his business model, to pay his business with the revenue he brings. Many if not all haters want him to produce money from his other sources with no support from the fans. I have no doubt that the City of Ottawa probably thinks of him as a cochroache . But he has not swindled his investors like Bryden did. Yet anyway.

Does he get to purchase the arena without the team? That's a hard no.

Lets also remember Melnyk was ousted by investors, tried to take control back anyways, had to be shut down by a judge and then a year later he and a bunch of other executives got charged with fraud by the SEC. A few years after that it was settled that he'd pay 150,000, be banned from serving as an officer/director of any publicly traded company for 5 years among other penalties.

He's also being currently sued by a bunch of former Sens Org executives/VPs/whatever.

I should have probably done a bunch of serious research but I just googled SEC settlement because I remember they went after him and the Sens Org former managers is recent enough that everyone will remember it.

 

[Tnuoc Alucard]

I guarantee you that I have have a heck of lot more business acumen then you will ever have! The fact that you extol the virtues of Rod Bryden being a great business man tells us alot of what you know.

So perhaps Melnyk is not worse Than Bryden was.

 

[Grizwald]

Does he get to purchase the arena without the team? That's a hard no.

Lets also remember Melnyk was ousted by investors, tried to take control back anyways, had to be shut down by a judge and then a year later he and a bunch of other executives got charged with fraud by the SEC. A few years after that it was settled that he'd pay 150,000, be banned from serving as an officer/director of any publicly traded company for 5 years among other penalties.

He's also being currently sued by a bunch of former Sens Org executives/VPs/whatever.

I should have probably done a bunch of serious research but I just googled SEC settlement because I remember they went after him and the Sens Org former managers is recent enough that everyone will remember it.

I believe he had to sell his Biovail shares at approximately 20 cents on the dollar and basically lost his a fortune. The SEC charged him with fraudulently reporting his revenue streams and misleading investors - it's no wonder nobody trusts him regarding anything he says about the SENS financial position.

The end result is Melnyk has been in liquidation mode for several years and it appears he currently doesn't have a pot to piss in. It wouldn't matter if the SENS averaged 20 thousand per game, he'd just pocket the money and keep bare-boning the franchise, he's in that much over his head.

 

[coladin]

I believe he had to sell his Biovail shares at approximately 20 cents on the dollar and basically lost his a fortune. The SEC charged him with fraudulently reporting his revenue streams and misleading investors - it's no wonder nobody trusts him regarding anything he says about the SENS financial position.

The end result is Melnyk has been in liquidation mode for several years and it appears he currently doesn't have a pot to piss in. It wouldn't matter if the SENS averaged 20 thousand per game, he'd just pocket the money and keep bare-boning the franchise, he's in that much over his head.

In this market, we will never know what would have happened if the fans supported the team like the other 6 Canadian markets.

Personally I think he would spend the money like the other markets in Canada. It is just business

 

[foggyvisor]

I won't let you wait long. I am not a EM lover who thinks he can do no wrong. I pop up to defend his stance on his business model, to pay his business with the revenue he brings. Many if not all haters want him to produce money from his other sources with no support from the fans. I have no doubt that the City of Ottawa probably thinks of him as a cochroache . But he has not swindled his investors like Bryden did. Yet anyway.

You obviously don't understand business if you think his business model is worth defending. PR and marketing are major parts of a business model and he is a complete disaster at both. There is no reason to defend EM at all. Nobody in the business community respects him. If you do, then I hope you have some savings and a rich uncle...

 

[mysens]

You obviously don't understand business if you think his business model is worth defending. PR and marketing are major parts of a business model and he is a complete disaster at both. There is no reason to defend EM at all. Nobody in the business community respects him. If you do, then I hope you have some savings and a rich uncle...

His biggest fail is his big mouth. He speaks way to much about anything hockey related, most owners sit it the background. He aired his whole personal life since coming here in 2003. He thought by getting personal with ottawa and the media would have given an "in" with the fans as being a how town kind of guy. This back fired tremendously as the more the fans knew about him and his successes at the time, the more he was hated and loathed. The people of ottawa knew way to much about him. Just think of many other big league sports franchises and think about how low key their owners are. EM was the opposite and it ruined him here. Everybody (fans) know more than they should personally about the guy and it is held against him. EM should stay low key but it's too late. We should be getting some news soon as far as a new partnership being formed.

 

[Micklebot]

the more the fans knew about him and his successes at the time, the more he was hated and loathed

What? Nobody hates him because they learned about the success he had, what kind of nonsense is this...

 

[mysens]

What? Nobody hates him because they learned about the success he had, what kind of nonsense is this...

Nonsense it is not. The jealousy from people when too much information about your personal life is a natural mechanism in humans. Everyone harps on the fact that he should get his own personal money to sign big players etc etc while the fans stay home and watch from the sofa. Whats that mean?? I have read countless people here thinking that the Sens being run as a business model is out the window because the said owner needs to put more of his own money albeit it from his other sources to satisfy the fans while they do not do their own part. I think that has been made pretty clear here. Again, Warren Buffett would never support one of his failing business by jeopardizing his other succesful business. And really, calling a spade a spade.....everybody has their panties in a knot here because he called out the fans more than once. The truth hurts they say, and people are pissed about that. Period.

 

[pzeeman]

And really, calling a spade a spade.....everybody has their panties in a knot here because he called out the fans more than once. The truth hurts they say, and people are pissed about that. Period.

I’d say it’s a little bit more nuanced than that. People feel the latest mess was really poorly timed, unfair, and inelegant.

Poorly timed - Why undermine the one of the best things that’s happened for your franchise - and a showcase for the whole league - by creating drama? Completely unnecessary at that time.
Unfair - The building didn’t sell out for every playoff game. Therefore the franchise is in deep trouble? I strongly believe that Phoenix is the root cause of that. Poor, boring performance contributed throughout the 2017-2018 season. No one could be reasonable upset with Bryden’s season ticket appeal/threat, because there was really no good reason for there to have only been 10K (or less) for one of the most exciting and winning teams in the league.
Inelegant - When the appeal is in the form of a thinly veiled threat, creating uncertainty, and with just a little bit of investigation is shown to be empty, people stop taking you seriously.

He hasn’t helped himself at all here.

 

[The Lewler]

Nonsense it is not. The jealousy from people when too much information about your personal life is a natural mechanism in humans. Everyone harps on the fact that he should get his own personal money to sign big players etc etc while the fans stay home and watch from the sofa. Whats that mean?? I have read countless people here thinking that the Sens being run as a business model is out the window because the said owner needs to put more of his own money albeit it from his other sources to satisfy the fans while they do not do their own part. I think that has been made pretty clear here. Again, Warren Buffett would never support one of his failing business by jeopardizing his other succesful business. And really, calling a spade a spade.....everybody has their panties in a knot here because he called out the fans more than once. The truth hurts they say, and people are pissed about that. Period.

Which other businesses does Melnyk own/operate that are currently successful?

 

[mysens]

Which other businesses does Melnyk own/operate that are currently successful?

He has oodles of funds from other business he is involved in abroad....only caveat is he has them sitting in offshore accounts and if he were to bring the money here, then huge tax implications is what he would have to deal with.

 

[Tuna99]

Nonsense it is not. The jealousy from people when too much information about your personal life is a natural mechanism in humans. Everyone harps on the fact that he should get his own personal money to sign big players etc etc while the fans stay home and watch from the sofa. Whats that mean?? I have read countless people here thinking that the Sens being run as a business model is out the window because the said owner needs to put more of his own money albeit it from his other sources to satisfy the fans while they do not do their own part. I think that has been made pretty clear here. Again, Warren Buffett would never support one of his failing business by jeopardizing his other succesful business. And really, calling a spade a spade.....everybody has their panties in a knot here because he called out the fans more than once. The truth hurts they say, and people are pissed about that. Period.

You're arguing that Melnyck is not running a successful business, because fans aren't showing up, and the customers (fans) don't like the product, and that Melnyck has put them on their place (staying home and not watching zsenstors games) and all of this is because we don't understand business.

The man is going to have to sell his franchise in a Canadian market because he's so bad at running it the building is empty, what are you arguing for, Melnyck can ruin his business any way he wants? There is no logic in your argument

 

[topshelf15]

Nonsense it is not. The jealousy from people when too much information about your personal life is a natural mechanism in humans. Everyone harps on the fact that he should get his own personal money to sign big players etc etc while the fans stay home and watch from the sofa. Whats that mean?? I have read countless people here thinking that the Sens being run as a business model is out the window because the said owner needs to put more of his own money albeit it from his other sources to satisfy the fans while they do not do their own part. I think that has been made pretty clear here. Again, Warren Buffett would never support one of his failing business by jeopardizing his other succesful business. And really, calling a spade a spade.....everybody has their panties in a knot here because he called out the fans more than once. The truth hurts they say, and people are pissed about that. Period.

Sounds like typical arrogance ,maybe people who suffer from lack of self worth might think this way...But most do not ...Him whining and crying about not making money, while steadfastly not trying to sell the team suggests something totally different... Than what you are trying to convince people of...

 

[Micklebot]

Nonsense it is not. The jealousy from people when too much information about your personal life is a natural mechanism in humans. Everyone harps on the fact that he should get his own personal money to sign big players etc etc while the fans stay home and watch from the sofa. Whats that mean?? I have read countless people here thinking that the Sens being run as a business model is out the window because the said owner needs to put more of his own money albeit it from his other sources to satisfy the fans while they do not do their own part. I think that has been made pretty clear here. Again, Warren Buffett would never support one of his failing business by jeopardizing his other succesful business. And really, calling a spade a spade.....everybody has their panties in a knot here because he called out the fans more than once. The truth hurts they say, and people are pissed about that. Period.

So, when they knew he was a billionaire buying the team, they had no issues with him, but as they learned more about him, mostly things like troubles with biovail/securities fraud, how he treated employees/getting sued by them, ect, (and his net worth decreased at the same time) they started taking issue with him? Sounds more like they learned about the person rather than they learned more about his success. People don't hate Melnyk because they learned how successful he was, his success has nothing to do with peoples opinion of him for the most part (sure maybe some people are jealous, but those people would have been before learning more about him as well). You're making zero sense whatsoever. This seems to be a trend with you, it's not the first time I've seen you make claims that people hate others because of their socioeconomic status, perhaps some introspection is warranted to see why that's your knee-jerk response to criticism of anybody who is wealthy.

 

[Grizwald]

In this market, we will never know what would have happened if the fans supported the team like the other 6 Canadian markets.

Personally I think he would spend the money like the other markets in Canada. It is just business

@coladin

I can't agree totally with you there.

Bob McKenzie said it best when he recently stated more "real fans" have attended NHL games in the past in Ottawa than any other city in Canada. It's the corporate world in Ottawa that lags behind in buying tickets and I don't believe the SENS are close to even Winnipeg in corporate ticket sales. And it's not entirely the corporate world's fault in Ottawa . If Melnyk had a proper marketing team and didn't make himself the face of the franchise, he might be able to attract more corporate tickets. But, Melnyk being Melnyk, an 'eff up of major league proportions in everything he's touched, has also managed to alienate the business world. Not surprising.

Below is an article from a couple years ago, and a few quotes:

Do the Sens have it tough here in Ottawa?

"the team is almost dead last in the NHL when it comes to attracting corporate cash"

"Ottawa’s once vibrant technology industry is beginning to bustle again, the small and medium sized startups that make up that industry aren’t spending on the Sens"

So blaming the "real fans" who have spent their hard-earned cash over the years to support the SENS is misguided. The corporate world has turned a blind-eye on Melnyk and that's where the real money is, it's not the guy spending $50 per ticket on upper bowl seats to bring his family.

 

[slamigo]

@mysens I fully agree that Melnyk has the right core idea in principle. An NHL team that owns its own multi-use arena should be able to sustain itself financially in an appropriate market. I believe Ottawa is an appropriate market. It is not an easy market, but it is big enough and passionate enough to be viable. On that much I agree with you yet there are many, many people on these boards that simply will not accept that idea.
However, Melnyk continually inserts himself into hockey operations, is unpredictable and potentially unhinged at times. This behavior has poisoned the well. I would say that Bryden's constant threats to move the team were likely worse, but Bryden was able to project a more likable public persona. Bryden seemed genuine in his passion for the Sens. Melnyk appears self-serving and loathsome.
If Melnyk were to simply hand over the complete operation of the team to competent management/PR staff, I firmly believe that he could still instruct that staff to direct their efforts into building a financially viable enterprise. Those directives would be in the background and not constantly made public. The organization would run much more smoothly and with considerably less drama.
In this situation, Melnyk is his own worst enemy. His shenanigans continually erode progress and public confidence.
But this is a business and the team should be financially viable without banking on future valuations. It should make a profit (or come close) year in and year out. Yes, there will be down years, but it should not be constantly in crisis. The current low season ticket levels are a byproduct of Melnyk's antics and public statements conflated by poor messaging from the team, a perceived 'boring coaching style' (albeit this year is different) bizarre interpersonal player turmoil and a general loss of the public's trust.
People have disposable income in this city. They have a LOT of it. Look at the number of BMW, Mercedes, Range Rovers, etc. Look at the number of McMansions being built. Heck, I'm even taking my family on a Caribbean vacation this winter. The money is there. But I personally won't hand over hundreds of dollars to watch a trap game or pay $30 for parking. This year it's a bit of a shame because it looks like the on ice product is becoming exciting. It's too bad Tkachuk is injured right now because young players like him are driving the renewal of interest in the team. Much more so than retaining EK in my personal opinion.

 

[Micklebot]

@mysens I fully agree that Melnyk has the right core idea in principle. An NHL team that owns its own multi-use arena should be able to sustain itself financially in an appropriate market. I believe Ottawa is an appropriate market. It is not an easy market, but it is big enough and passionate enough to be viable. On that much I agree with you yet there are many, many people on these boards that simply will not accept that idea.
However, Melnyk continually inserts himself into hockey operations, is unpredictable and potentially unhinged at times. This behavior has poisoned the well. I would say that Bryden's constant threats to move the team were likely worse, but Bryden was able to project a more likable public persona. Bryden seemed genuine in his passion for the Sens. Melnyk appears self-serving and loathsome.
If Melnyk were to simply hand over the complete operation of the team to competent management/PR staff, I firmly believe that he could still instruct that staff to direct their efforts into building a financially viable enterprise. Those directives would be in the background and not constantly made public. The organization would run much more smoothly and with considerably less drama.
In this situation, Melnyk is his own worst enemy. His shenanigans continually erode progress and public confidence.
But this is a business and the team should be financially viable without banking on future valuations. It should make a profit (or come close) year in and year out. Yes, there will be down years, but it should not be constantly in crisis. The current low season ticket levels are a byproduct of Melnyk's antics and public statements conflated by poor messaging from the team, a perceived 'boring coaching style' (albeit this year is different) bizarre interpersonal player turmoil and a general loss of the public's trust.
People have disposable income in this city. They have a LOT of it. Look at the number of BMW, Mercedes, Range Rovers, etc. Look at the number of McMansions being built. Heck, I'm even taking my family on a Caribbean vacation this winter. The money is there. But I personally won't hand over hundreds of dollars to watch a trap game or pay $30 for parking. This year it's a bit of a shame because it looks like the on ice product is becoming exciting. It's too bad Tkachuk is injured right now because young players like him are driving the renewal of interest in the team. Much more so than retaining EK in my personal opinion.

well put. there will always be people who bemoan a budget, but the city will and has supported a budget team in the past. The current situation has nothing to do with being a budget team, and everything to do with losing trust of the fan base compounded by a perceived declining product despite financial windfalls like the new (2014) TV deals and expansion fee.

I think the biggest issue this team has it it decided to cut corners on the ops side (GM, scouting, coaching) and presumably divert that relatively speaking meager savings into the on ice salaries because that spending was more transparent to the fans. The problem being that cutting the ops side spending appears to have lead to poor decisions that end up costing the team more in the long run.

 

[slamigo]

I think the biggest issue this team has it it decided to cut corners on the ops side (GM, scouting, couching) and presumably divert that relatively speaking meager savings into the on ice salaries because that spending was more transparent to the fans.

Except the money spent on Randy Lee's couching.