Melnyk has offer to sell Senators

[SupremeNachos]

Let's say he sells the team. What are the chances the new Owner(s) don't threaten to up and move without a new stadium deal in place?

 

[Gil Gunderson]

Let's say he sells the team. What are the chances the new Owner(s) don't threaten to up and move without a new stadium deal in place?

The group backing the opposing Lebreton bid (Guy Laliberte and Andre Desmarais) wanted to build the Lebreton arena and buy the team. I have much more faith in them reaching a deal with the city than I do with Melnyk. He already burned bridges with the mayor.

 

[NorthCoast]

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

In Ottawa he has to build a stadium, let's say it's 500 mil.

In any other city he either has to buy or build a stadium. (I think we can agree that he can never make anywhere near as much money as in Ottawa unless he owns the stadium, concerts, etc). Even if he goes to the states and finds a city/state willing to help subsidies the stadium, he will still be on the hook for some of it, plus cost of developing fanbase, plus relocation costs (approx. 200 mil), plus he won't have the 30 mil per year he gets from TSN in TV rights. So if he doesn't want to sell or rent in someone elses stadium, then that removes all the likely candidates that already have stadiums/owners in place (Houston, QC, Seattle, etc) There just is no other city that gives him the same financial opportunity as Ottawa.

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

I would say that considering both franchises are desperate to build new arena's closer to the downtown core is a signal that both arena's suck and that the difference the arena provides to the sens of calgary (considering that tickets are only about 30% of revenues anyways), is negligible. But regardless your point is well taken that both cities have much more opportunity to generate revenue in their existing markets with a new arena.

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.

This is a great question because it's actually a prime example of how regardless of team finances Melnyk should not be running an NHL franchise.

Here is a list of teams that have failed to sell-out a playoff game in their history:

Anaheim
Detroit
Florida
New Jersey
New York Islanders
Ottawa
Carolina
Colorado
San Jose
Arizona
Columbus
Nashville

Yeah, surprising isn't it.


Not too mention many teams fans have complained about fake-sell outs where many of the seats are still empty. ex: This forum thread has Calgary fans discussing why one of their playoff games wasn't actually fully sold out and that many seats were empty at the game. So the list above might actually be much longer.

100% agree that every big game should be a sellout. We can debate how much of that responsibility falls on fan loyalty versus the promotion/pricing policies of a business but that's all beside the point.

The important point is that this should not have become the tirefire it did. If Melnyk/team had just taken the stance of: "we have a history of being an amazing fanbase and selling out virtually every playoff game we have ever had. Probably just a one off or some promotional mistake on our part. It's happened in many other markets and when you make the playoffs as much as we have it's bound to happen. I have absolutely zero concerns about our fans and we're looking forward to the next game" instead of pointing the finger at the fanbase then it would have disappeared instantly. This is how other owners handle execptions to the rule...because the evidence actually shows that they are exceptions. (Just like when Cooke hurt Karlsson. World see's a fluke, Melnyk see's intention)

 

[NorthCoast]

Let's say he sells the team. What are the chances the new Owner(s) don't threaten to up and move without a new stadium deal in place?

See my post above regarding moving the team. Unless a new owner is willing to go to an untapped major market in the US (Houston/Seattle) fight with the existing billionaires in that city over stadium ownership, and be willing to play the long-long game on a ROI, then I don't see how any other market provides a better financial opportunity than Ottawa. Further, I don't see why the NHL/other owners would approve someone moving a team to a city where they believe that they can get an expansion team into. (ie: QC, Seattle).

Simply put, over the past 6 months people have been debating this nobody has been able to lay out a specific example of a Sens relocation that doesn't quickly fall apart once you begin to factor in building costs, relocation costs, etc. etc.

 

[SupremeNachos]

See my post above regarding moving the team. Unless a new owner is willing to go to an untapped major market in the US (Houston/Seattle) fight with the existing billionaires in that city over stadium ownership, and be willing to play the long-long game on a ROI, then I don't see how any other market provides a better financial opportunity than Ottawa. Further, I don't see why the NHL/other owners would approve someone moving a team to a city where they believe that they can get an expansion team into. (ie: QC, Seattle).

Simply put, over the past 6 months people have been debating this nobody has been able to lay out a specific example of a Sens relocation that doesn't quickly fall apart once you begin to factor in building costs, relocation costs, etc. etc.

What about only buying if there is a deal set in place to build a new stadium in OTT?

 

[NorthCoast]

What about only buying if there is a deal set in place to build a new stadium in OTT?

Yeah, good question. Might depend on who is buying.

The other bidder for the downtown property available to the sens for the new arena included an arena in their proposal and are willing to buy the sens. Seeing as the are very familiar with the project, and have their own plan for the entire site (not just the arena), they would probably want to just buy the team right now so that they can control the direction of the project.

But perhaps an outside owner that was coming in would want the project signed-off before buying.

In either case I am pretty sure that Melnyk is pricing the team based on the most positive long-term outcome of the project. ie: if the team is worth 450 now, but it will be 700 after the project, then he is probably asking for 700 regardless of the project state. So if you are buying the team you are also committing to Ottawa and the downtown arena project since they are being included in the price.

 

[powerstuck]

What about only buying if there is a deal set in place to build a new stadium in OTT?

I don't think Melnyk would be selling the Sens but continuing Lebreton project. He may sell ''both'' to one party.

 

[member 290103]

As of one year ago, about 788 times that.

The Top 10 Wealthiest CPAs

Weird how he is not mentioned as a buyer of hockey teams anymore. That seems a bit inflated considering his RIM stock value is so low. It's too bad - he'd have been a great owner.

 

[Butch 19]

Interesting that Melynk called the report inaccurate.

He didn't deny possibly selling though... He could have said he's not interested in selling.

At least you'd tend to think this; with Melynk, who knows...

Melnyk, "let me keep it very simple: the team is not for sale, nor are we negotiating any offer."

How is that not a denial?

Okay, he didn't say "if some party offers me $10B, I may consider selling the team."

 

[JofaKing25]

I hope that there can be an alliance formed with Devcore and OSEG to buy the Senators and allow all the team to move forward from all these bad publicity we have been getting and try to formulate some sort of Sustainability for the teams continued success long-term not letting the team move.

 

[powerstuck]

Weird how he is not mentioned as a buyer of hockey teams anymore. That seems a bit inflated considering his RIM stock value is so low. It's too bad - he'd have been a great owner.

Since Balsillie tried a shady purchase+move of Coyotes to Hamilton, he is a personna non grata in the NHL restricted circle and will remain for the rest of his life.

 

[NorthCoast]

Melnyk, "let me keep it very simple: the team is not for sale, nor are we negotiating any offer."

How is that not a denial?

Okay, he didn't say "if some party offers me $10B, I may consider selling the team."

Is this like when team says they aren't trying to trade a teams superstar, but Gretzky was traded so anything is possible...and then 4 months later they are trading the player.

 

[GuelphStormer]

Since Balsillie tried a shady purchase+move of Coyotes to Hamilton, he is a personna non grata in the NHL restricted circle and will remain for the rest of his life.

yep, that's the story, isn't it

 

[TheLegend]

Since Balsillie tried a shady purchase+move of Coyotes to Hamilton, he is a personna non grata in the NHL restricted circle and will remain for the rest of his life.

yep, that's the story, isn't it

To borrow a post from 2009...

http://www.fan590.com/media.jsp?content=20091009_122718_8788

“Speaking on Hockeycentral, NHL Deputy Commissioner Bill Daly stated that although the owners have no interest in having Jim Balsillie involved with the NHL currently, you can "never say never" when it comes to any future relationship. Daly added that "people can rehabilitate themselves" & Balsillie may take steps to repair his relationship with the league.”
​

 

[shakes]

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.

I agree with you. The fans have to accept their share of the responsibility as well. I mean, it became an issue when too many Leaf fans would drive the 5 hours or so to Kanata to see Leaf games, but driving to the suburbs from Ottawa is too much? Also, that sales restriction thing they did (still do?), while I understand that they don't want their home arena turned into a home game for the Leafs, maybe buy the damn tickets so that Leaf fans can't? This is why I don't understand why everyone is just blaming Melnyk, though I also agree that he's a goof and shouldn't be owning a team.

 

[Pierre from Orleans]

I agree with you. The fans have to accept their share of the responsibility as well. I mean, it became an issue when too many Leaf fans would drive the 5 hours or so to Kanata to see Leaf games, but driving to the suburbs from Ottawa is too much? Also, that sales restriction thing they did (still do?), while I understand that they don't want their home arena turned into a home game for the Leafs, maybe buy the damn tickets so that Leaf fans can't? This is why I don't understand why everyone is just blaming Melnyk, though I also agree that he's a goof and shouldn't be owning a team.

Driving from the suburbs multiple times a year gets tiresome compared to the 5 hour drive to Ottawa a couple times a season.

 

[NyQuil]

I agree with you. The fans have to accept their share of the responsibility as well. I mean, it became an issue when too many Leaf fans would drive the 5 hours or so to Kanata to see Leaf games, but driving to the suburbs from Ottawa is too much? Also, that sales restriction thing they did (still do?), while I understand that they don't want their home arena turned into a home game for the Leafs, maybe buy the damn tickets so that Leaf fans can't? This is why I don't understand why everyone is just blaming Melnyk, though I also agree that he's a goof and shouldn't be owning a team.

Who do you think I bring to the Leafs games as a season ticket holder?

My buddies who are Leaf fans and live in Ottawa.

You really don’t have a clue about what you are talking about.

The vast majority of Leaf fans at Leaf games in Ottawa are from the Ottawa Valley.

Leaf fans buy tickets in Ottawa for two games in a season. Hell, I’ve bought that many to see games at the ACC.

 

[MisterMethos]

Who do you think I bring to the Leafs games as a season ticket holder?

My buddies who are Leaf fans and live in Ottawa.

The vast majority of Leaf fans at Leaf games in Ottawa are from the Ottawa Valley.

Leaf fans buy tickets in Ottawa for two games in a season. Hell, I’ve bought that many to see games at the ACC.

It wouldn't surprise me if the largest number of Leaf fans outside of Toronto are in Ottawa. I remember when I was in school at Carleton University there were a lot of people from Toronto and Southern Ontario. And buddies of mine at Ottawa U said the same thing.

 

[Bryanbryoil]

Hopefully he sells the team in time for Karlsson, Duchene and Stone to want to decide to stay in Ottawa. They may have already made their minds up but the team selling would have to be seen as a positive by them I would think.

 

[Mr Positive]

Hopefully he sells the team in time for Karlsson, Duchene and Stone to want to decide to stay in Ottawa. They may have already made their minds up but the team selling would have to be seen as a positive by them I would think.

It's too late for that.

If a new owner swoops in, it should have already happened, and there is simply no indication of that process even starting yet. But, even if there were a new owner coming in right now, the players would still have to commit to a team with an uncertain future on and off the ice, and they really would not know if this new owner would be any better. I know we can easily say "well it can't be worse than Melnyk" but a player looks at such a knee jerk change up top and thinks that even if the guy is better, it still shows that the team is in total chaos.

 

[Jets4Life]

This is a great question because it's actually a prime example of how regardless of team finances Melnyk should not be running an NHL franchise.

Here is a list of teams that have failed to sell-out a playoff game in their history:

Anaheim
Detroit
Florida
New Jersey
New York Islanders
Ottawa
Carolina
Colorado
San Jose
Arizona
Columbus
Nashville

Yeah, surprising isn't it.


Not too mention many teams fans have complained about fake-sell outs where many of the seats are still empty. ex: This forum thread has Calgary fans discussing why one of their playoff games wasn't actually fully sold out and that many seats were empty at the game. So the list above might actually be much longer.

100% agree that every big game should be a sellout. We can debate how much of that responsibility falls on fan loyalty versus the promotion/pricing policies of a business but that's all beside the point.

Winnipeg had about 100 tickets left to sell on ticketmaster, before puck drop of Game 1 and 2 of the Conference Final. I'm sure everyone in Winnipeg wanted to go to the game, but the prices prevented many from going, as a lot of Jets fans had budgeted for two playoff rounds and could not afford round 3. If the Jets make another deep playoff run, I guarantee there will be empty seats.

IN any case, it's 100% pricing, and nothing to do with fan loyalty, as there were thousands of fans outside for the Street Party.

 

[KPower]

Sens not locking up their players long term indicates Melnyk has no intention of selling.

He's running this team like a guy trying to hang on, not a guy looking to sell.

 

[LeHab]

Today on Habs RDS pregame show Francois Gagnon stated Desmarais & friends rumored offer to Melnyk back a few months ago was $400m + cover current debt + commitment to invest 250m in proposed Lebreton Arena. Take it or leave it - no negotiation. Wasn't really paying attention until numbers started coming out not sure if he talked about the actual source of this offer. Can't find anyone else reporting these details yet.