Speculation: Melnyk and speculating about the sale of the team

Discussion in 'Ottawa Senators' started by SENATOR, Aug 12, 2019.

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  1. InTkachukWeTrust

    InTkachukWeTrust Registered User

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    If only Melnyk invested the absolute minimum in marketing this team would probably do alright.

    There’s literally zero hype around this franchise.
     
  2. InTkachukWeTrust

    InTkachukWeTrust Registered User

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    If I’m the next owners I’m building a statue of Alfredsson on the front lawn of parliament.
     
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  3. Variable26

    Variable26 Global Matador

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    That is the most interesting part; what is he thinking?!?

    I seriously think there must be a reason to totally collapse the entire brand in two years.

    Weird ****
     
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  4. InTkachukWeTrust

    InTkachukWeTrust Registered User

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    I can’t figure out what he’s trying to do. Definitely not trying to run a successful hockey team...

    Maybe he’s using the team as a cash cow to pull loans for his other businesses or he wants the banks to reposes it and he’ll get like 500 mil for the team + the building and forget about the debt

    It’s weird **** for sure
     
  5. supsens

    supsens Registered User

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    Zero playoff revenue and a last place team with a half empty rink means less money to go around. Why pay an extra 10-15 million a year for no reason? He’s trying to not lose 10 million a year on a product he can’t sell.
    I have no clue if he will ever spend but I can’t see this going on forever, something has to give
     
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  6. Calvin123

    Calvin123 Registered User

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    While the it has collapsed over the past couple years, it's been fading for a long time, and the Senators seemingly have done nothing in that time to really build the brand.

    About 12 years ago I started working for a large company that has one of the better boxes at the arena. When I started, it was almost impossible to get the box allocated to you, as it was so popular, and if you did you were turning people (clients) away it filled so fast. By the time I left two years ago, the company was struggling to fill the box most games. I also see this in my kids and their friends. Many of them started as Sens fans (because there parents were sens fan), but as they got old enough adopted other teams as there was nothing exciting about the Sentators.

    It's not hard to see why. Over the past 10 years or so, there's been very little to be excited about with the Senators. Karlsson and Stone were fantastic, but were never supported by enough good players around them to make the team itself very interesting to watch on a consistent basis.
     
  7. Variable26

    Variable26 Global Matador

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    If it was allowed, I would have putting advertising mocking leafs and habs fans during the days when we always beat them... kinda like the old VW ads that had awesome humour to them

    You know what ad agencies like that cost? More than our team budget I am sure
     
  8. BonkTastic

    BonkTastic ಠ_ಠ

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    I wouldn't doubt that he thinks he's smarter than everyone else in any room he's in, and he's had so many yes-men surrounding him for so long who have had the fear of god put in them to ever dare contradict him, that he actually thinks that a pro hockey team can operate like this - and no one has the guts to tell him otherwise, and those that try are quickly gotten rid of.

    It's obviously just an educated guess, but it would explain so much, including the cavalcade of executives this team has blown through in the last half decade.
     
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  9. topshelf15

    topshelf15 Registered User

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    Pretty much ,billionaires dont become billionaires by not gaining or saving every dollar they can....
     
  10. GrantLemons

    GrantLemons Church of FYOUS

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    He's owned the team long enough now that he undoubtedly thinks he knows more than enough about the business that he can run it the way it currently stands.

    When someones ego is that big, they do and think some really stupid things, and don't care to change based on anyone's feedback or enlist anyone to help (because they know how to do everything).

    It's an insanely toxic personality type for any business, especially when it's that high up on the totem pole.

    Given he has no real plan outside of "cut operating expenses to the bone, and take it day by day", I think it's going to come down to one day where he wakes up and says to himself "I just don't want to deal with this anymore".
     
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  11. GrantLemons

    GrantLemons Church of FYOUS

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    Pretty interesting. You have to wonder if Eugene would have been able to secure that loan if he hadn't conceded a right of first refusal. Ie. was it at all feasible that he could possibly secure a loan of that size, given the debt the Sens carried, and Eugene's own bleak (for a billionaire) financial outlook? That would give some indication of whether that loan came with the aforementioned conditions.
     
  12. swiftwin

    swiftwin #melnykout

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    I think he just doesn't give a **** about the hockey ops side of things, nor does he give a **** about how the business is being run.

    His businessman ego is overpowering his hockey ego. Right now, he's sitting on an appreciating asset (the franchise), with the potential to appreciate by a huge amount (new arena). But he's too broke to run it, and is drowning in debt. A some are throwing him low-ball offers, knowing he can't afford to keep the team without going bankrupt.

    Basically my interpretation of what's happening(with random made up numbers)....

    Laliberte: Hey, I heard you're too broke to run the Sens. I'll give you $400m for it.
    Melnyk: Nope, the team is worth atleast $850m, especially with land for the new arena given to me. Take it or leave it.
    Laliberte: Bruh, you can't afford to keep the team running, nor can you afford the arena, you have to sell the team or you'll go bankrupt. You might as well take my offer.
    Melnyk: Nope, I just need a small loan and I'll right the ship, I can hold on to this team (an appreciating asset) as long as I need to.
    **Laliberte does the math, and recognizes that there's no way Melnyk can keep himself and the team afloat, even with a loan, especially with Karlsson, Stone, etc. contracts expiring, and a salary cap of $60M+**
    Laliberte: Oh really? I'll call your bluff. Here's $135m, but if you sell the team, you have to offer it to me first.
    Melnyk: Perfect. Just watch me....
    **Melnyk sells Karlsson, Stone, Duchene, and manages to have a payroll $15m under the cap**

    Now we're at a total stalemate. I think Melnyk has proven that he can infact run the team in the short and medium term without going bankrupt. But on the other hand, he failed to build the arena, putting the long term viability of the team under Melnyk at risk. The NCC appears to have fast tracked the land to Devcore "with an open spot for an arena". Both sides are trying to wait eachother out. Devcore has no reason to give in to Melnyk's demands since the longer they wait, the older CTC becomes, and the more leverage they have since they have the obvious location for the new arena. Melnyk has no reason to give in because he can keep the team afloat as long as he wants, and the franchise's value will continue to appreciate.
     
    Last edited: Aug 16, 2019
  13. Crosside

    Crosside Registered User

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    It s was reported that Melnyk have accepted a offer of 425 M but it s Bettman that nixed the deal. Don t know why !!!
     
  14. swiftwin

    swiftwin #melnykout

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    Not sure if I believe that one, but it's also a possibility.

    It would make sense for Bettman to nix it. If a team was sold for that little, it would massively depress the value of the whole league.

    It also lines up with the rumor that the NHL stepped in and loaned the Sens some money a couple seasons ago (maybe as compensation for nixing that deal?).

    But that's all just pure speculation.
     
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  15. Crosside

    Crosside Registered User

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    But now if the rumor are true , he accept the deal of Arizona for 380 M
     
  16. Upgrayedd

    Upgrayedd Earn'em and Burn'em

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    The intended end game of this charade should we ever become privy, will be fascinating! I can't for the life of me see what the plan is now and moving forward outside of the speculation here regarding a seemingly close ish sale and minimizing any and all costs.
     
  17. swiftwin

    swiftwin #melnykout

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    Hiiighly doubt it. Considering the whole Scotiabank fiasco. He ripped up the arena naming right contract because they wouldn't give him a loan, so we with Canadian Tire. Melnyk doesn't even appear on the list of billionaires anymore. Let's assume he's at like $900m. The Sens are worth $435m, which is an illiquid asset. Melnyk without the Sens is worth less than $500m. He's also got a ton of other illiquid assets in Barbados and stuff. He's flat out broke.

    Look at it this way: He was a multi-billionaire when he bought the Sens for $127m in 2003. Less than 10% of his net worth. Now the Sens appear to be more than 50% of his net worth. That's insane.
     
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  18. Stylizer1

    Stylizer1 SENSimillanaire

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    Multi billionaire? Maybe in Canadian Tire money.
     
  19. SENATOR

    SENATOR Registered User

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    What we have so far to conclude:
    Melnyk is not interested to run a successful franchise. It is because of two outcomes. Nothing else comes to mind.

    -Wants to relocate and sell the franchise
    -Wants to sell the franchise, without relocating, waiting patiently for 20 millions bonanza payout to pocket it.
    And show us a middle finger.
     
  20. Cosmix

    Cosmix Registered User

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    You forgot the other main part of the future plan: FYOUS !
     
  21. JD1

    JD1 Registered User

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    There a few things that are off in this post.

    First, he didn't tear up the Scotiabank contract. He had an out clause and exercised it for a better deal.

    Second, net worth is assets minus liabilities. If rumours of the debt he carries on the franchise are true, let's say around 250M, then he's likely getting say 350M of net worth accredited to any of these types of lists.

    Your premise is true....the Sens are far more of his net worth today than when he bought it but your calls are a bit off
     
  22. Tnuoc Alucard

    Tnuoc Alucard There's more than 1 side to any story or issue.

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    Last 10 years?

    Maybe the last 2 seasons......... heck there was the Hamburglar Run in 2015, and there was the 2017 playoff run, that saw the Sens play right though to game 7 in the ECF, and being one double overtime goal away from there second trip to the SCF ............. I though both these events were easy to get "excited" about.

    Is there any chance you missed these two events?
     
  23. Tnuoc Alucard

    Tnuoc Alucard There's more than 1 side to any story or issue.

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    Bettman himself cannot "nix" a deal, only the BOG can do that, by not approving of a sale, as far as I know.

    Yeah, there was a rumour, and there was an explanation, but more importantly there was a statement that EM has no desire to sell the Franchise.

    Eugene has no interest in selling the Senators. Offers are made for NHL teams all the time. Doesn’t really mean anything.

    Deputy commissioner Bill Daly
    So not much stock was put into that rumour, at that time, and less so today.
     
  24. Boud

    Boud Registered User

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    One thing every man learns in his life is that you can't take what's said publicly and just assume everything is true.

    One day you'll learn, but not today.
     
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  25. Micklebot

    Micklebot Moderator

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    Bettman is known to have a lot of influence of the BOG. Particularly in a scenario like this it would not shock me if he threw his weight around to rally the troops. Think of him as a party whip combined with the strat level decision maker; technically the MPs have the right to vote however they want, but the reality is the strategic decisions are made above their heads.
     
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