Melnyk has offer to sell Senators

[GrantLemons]

TFP is a decent magazine but I'd like to see the news come from a more concrete or connected source.

Agreed, although this is the first real piece of info being reported by any reputable source. Everything up until this point has been local hearsay or rumours from "a friend of a friend". This coupled with the refinancing of debt seems to have smoke billowing from CTC. Hard to believe there's not fire somewhere.

Eugene likely doesn't want to sell like he's maintained all along, but perhaps he's feeling the heat from so many sources (media/fans/league etc.) he's beginning to feel he has to sell. In which case it's likely just going to take a lucrative offer at the proper time (when he's come to terms with selling) to pry it away from him. His ego is just so gd big it just might take time for him to come to terms with actually selling. In which case he'll just deny, deny, deny all day long (like he's been doing) until one day he'll say "ok fine, just do it". Sort of like trying to get a kid to brush their teeth.

It's sad that's basically the type of person we're dealing with here.

 

[StreetHawk]

Another key factor is his ability to finance a new downtown arena.

 

[Bixby Snyder]

im sure the league will fight to keep the franchise in ottawa.

Hopefully not.

 

[KCC]

Somewhat official response

Just trying to sweep it under the rug so maybe people forget about it while they negotiate.

 

[Jeffrey93]

He's running the team into the ground with a shoestring budget, apparently because he is in debt. He could likely get out of debt in a hurry by selling the team for much more than he originally paid for it. After all, as he said in his own words "doesn't want to waste a lifetime of working hard on a hockey team".

If he would rather destroy a franchise and spite a city that helped save his life than get out of debt, then you can add "massive hypocrite" to the endless list of negative adjectives one can use to describe Melnyk.

Everyone wins if you sell for a fair price, Eugene: you're out of debt and Senators fans are out of a living hell.

Almost every NHL franchise carries debt. Almost every NHL franchise at some point or another refinance their debt.

He's running the team on a shoestring budget because fans aren't showing up, even with recent success.

How did the city help save his life? Serious question, no idea what this is referring to.

If he sells how does everyone win? He doesn't own an NHL franchise....he wants to own an NHL franchise. If he sells, he loses, possibly the city of Ottawa loses....the fans therefore possibly lose....and the NHL and a new market win.

If I were Melynk....I'd push for heavy subsidies for a new rink downtown.....or I'd move, I'd stay within the province though.

 

[Jeffrey93]

Just trying to sweep it under the rug so maybe people forget about it while they negotiate.

I thought they admitted they received a 'low ball' offer...but weren't for sale. If I wanted to buy an NHL franchise....I'd probably look at what has gone on in Ottawa this past year and make an offer to Melynk as well. Might get a bargain because he's fed up and wants out.

He's stated many times that he's not selling....and also that he's not ruling leaving town out. Part of this is sabre rattling for a new rink....but I believe him. He doesn't want to sell, and if he needs to move to keep a team and put it in the black, he will.

 

[Howie Hodge]

How did the city help save his life? Serious question, no idea what this is referring to.

Didn't he receive a transplant from a local donor a couple years back?

I vaguely remember.

 

[Gil Gunderson]

Didn't he receive a transplant from a local donor a couple years back?

I vaguely remember.

And fired the president of who campaigned to find him the liver a year later, and it hasn’t been the prettiest parting of ways.

Class act, this Eugene.

 

[Ernie]

Maybe it's just me but the thread title bugs me. Should be "Melnyk has offer to buy the Senators."

 

[justafan22]

[MOD]

200+ million in debt, and "destined" to be a cap floor team

 

[Price is Wright]

I doubt Melnyk is trying to sell the team.

I believe everyone around Melnyk is telling him to sell the team.

 

[Korpse]

He's stated many times that he's not selling....and also that he's not ruling leaving town out. Part of this is sabre rattling for a new rink....but I believe him. He doesn't want to sell, and if he needs to move to keep a team and put it in the black, he will.

Most years the Senators are profitable, Ottawa isnt the problem. Melnyk is. It's the way he operates, it would be no different if he brought the team to another city. Though that would cost him a fairly large sum of money, aka it isn't happening.

 

[Price is Wright]

Most years the Senators are profitable, Ottawa isnt the problem. Melnyk is. It's the way he operates, it would be no different if he brought the team to another city. Though that would cost him a fairly large sum of money, aka it isn't happening.

Yeah, don't buy for a minute that the problem is Ottawa. Get a new owner, build a new arena in LeBreton Flats, team would be in the black consistently after that.

 

[NorthCoast]

Yeah, don't buy for a minute that the problem is Ottawa. Get a new owner, build a new arena in LeBreton Flats, team would be in the black consistently after that.

Exactly. Ownership matters. Just look at the Ottawa CFL experience.

Why are the Redblacks a huge success when the Renegades were a trainwreck under the Gleibermans...improved stadium and professional ownership.

The sens by nearly every evaluation available are middle of the pack in terms of revenues and player salary. The difference is that while some teams carry debt, few are carrying 40-50% debt, with 15-20 mil interest payments draining the revenues every year. Good owners, Vinnik, cough, cough, pay down the debt so that the team has a fighting chance to make money/be competitive.

 

[SpezDispenser]

Hopefully not.

There's no fight to keep it in Ottawa, it doesn't leave the capital of Canada.

 

[Price is Wright]

Exactly. Ownership matters. Just look at the Ottawa CFL experience.

Why are the Redblacks a huge success when the Renegades were a trainwreck under the Gleibermans...improved stadium and professional ownership.

The sens by nearly every evaluation available are middle of the pack in terms of revenues and player salary. The difference is that while some teams carry debt, few are carrying 40-50% debt, with 15-20 mil interest payments draining the revenues every year. Good owners, Vinnik, cough, cough, pay down the debt so that the team has a fighting chance to make money/be competitive.

I think a lot of people, myself included, are a bit relocation happy. We want to see new teams and new markets. The NHL almost regularly expanded and relocated since the late 60s until 2000, then we didn't see a new team until Vegas with Atlanta going to Winnipeg.

I also think the people who really want a new team in Quebec City don't care how it happens or if is even a good idea. They want their team back by any means necessary and Ottawa would be the least trouble since they would stay in division and country.

But the reality is that Ottawa is a good NHL market with a bad owner. You don't punish the market for that. The NHL did that once with Minnesota and immediately regretted it with their expansion team in the same decade.

In the end it's all about when Melnyk can get pushed out. Some markets struggle forever due to bad ownership. I don't think the BOG like Melnyk so I'm sure the idea is already in their heads to think of getting him out.

 

[BKIslandersFan]

Since Vegas expansion fee was 500M, surely Senators sale has to be around that amount at least?

 

[GrantLemons]

Since Vegas expansion fee was 500M, surely Senators sale has to be around that amount at least?

Something around $500 million is probably the magic number, though it may take in the $600-700 million ballpark to get Uncle Eugene to let go of his precious.

Who knows though. Things like the amount of debt the Sens are carrying (reportedly $200+ million), and the agreement for the Lebreton arena might have an effect on the perceived value, or they may not. Seems like it's probably a very fluid negotiation (if there even is a negotiation happening).

 

[Price is Wright]

Something around $500 million is probably the magic number, though it may take in the $600-700 million ballpark to get Uncle Eugene to let go of his precious.

Who knows though. Things like the amount of debt the Sens are carrying (reportedly $200+ million), and the agreement for the Lebreton arena might have an effect on the perceived value, or they may not. Seems like it's probably a very fluid negotiation (if there even is a negotiation happening).

Before thinking about the debt I was guessing $750M.

He probably wants more than that so he feels like he made a profit, and as much as I think people would want to buy the Sens, not sure anyone wants to drop a billion on it. Maybe a consortium of owners? That's it.

 

[BLNY]

Remember Jim Balsille. How much is that guy worth now? A mil?

As of one year ago, about 788 times that.

The Top 10 Wealthiest CPAs

 

[Bookie21]

Vegas went for $500 million USD, so Ottawa has gotta be in the $650 CDN ballpark for just the team alone. I'm thinking that having the Lebreton Flats development rights would have to add $200 million to that total, making it about $850 million total.

 

[Bookie21]

As of one year ago, about 788 times that.

The Top 10 Wealthiest CPAs

Either way, not wealthy enough to own an NHL franchise

 

[Jeffrey93]

Most years the Senators are profitable, Ottawa isnt the problem. Melnyk is. It's the way he operates, it would be no different if he brought the team to another city. Though that would cost him a fairly large sum of money, aka it isn't happening.

Depends where he goes. Keeping the team in Ottawa is going to cost him a fairly large sum of money.

They're barely ahead of Calgary in profit last year....and Calgary is in a much less revenue generating venue.

I dunno...I'd like to hear how Melynk is the problem that the team can't sellout playoff games or home openers after a deep playoff run.

Even if tickets were stooopid pricey.....should've been full.

 

[Gil Gunderson]

Gino Reda was on TSN 1050 today talking about Melnyk’s need to shed the Ryan contract and stay at the cap floor. Says it could make sense that Melnyk might want to minimize his debts and salary owing to maximize the value of the team in preparation for a sale.

Would make sense that he got a better interest rate on his loan as well.

Either way, I think he’s dug his own grave by trading Karlsson. 98% of the fanbase hates his guts and many have chosen to boycott him. Attendance this season is going to be ugly. It’s not sustainable.

 

[lawrence]

I don't care who owns the team, as long as the team HAVE TO REMAIN IN OTTAWA!