News Article: Melnyk: 'not selling the team — period'

[Qward]

Go to CanLi. You can search Melnyk and read the court cases yourself. No need to use third parties to water it down for you.

If you go to worldLi you can read of the time Melnyk was accused of cheating in horse racing lol.

 

[Tnuoc Alucard]

Can’t wait to see Melnykel & Dimers excuse when Sens attendance drops to the lowest in the league next season. No Hoffman, likely no Karlsson, and no draft pick as a consolation. Congrats Sens management for being pure garbage.

So you don't think that a trade involving EK65, would not bring back a (first round) draft pick(s)?

 

[YouGotAStuGoing]

So you don't think that a trade involving EK65, would not bring back a (first round) draft pick(s)?

Very obviously a reference to our own first round pick.

 

[Tnuoc Alucard]

Very obviously a reference to our own first round pick.

No not really .......... but I'll bet a trade, as described, will include a 2019 1st round draft pick, which is a asset that if necessary, can be used to move up in next years draft.

 

[YouGotAStuGoing]

No not really

Yes, really. The allusion was obvious. So obvious that I can't believe I'm writing a second post stating as much.

 

[Tnuoc Alucard]

Yes, really. The allusion was obvious. So obvious that I can't believe I'm writing a second post stating as much.

So just where is that (originally Ottawa's) Colorado first round pick going to be?

 

[YouGotAStuGoing]

So just where is that (originally Ottawa's) Colorado first round pick going to be?

Not even remotely relevant to the context of the initial post.

 

[NorthCoast]

Sensung

[mod]
that increase in debt comes from the franchise not being able to sustain itself. You can argue that it comes from Melnyk not injecting cash but either way the root cause is the same which is not sustaining itself. It isn't a shell game,it's not fancy accounting where the Sens lose all the money and other legal entities make money.

I don't think that the info we have clearly shows that the debt comes from the franchise not being able to sustain itself.

When Bryden sold the team here are the main reasons he gave for the bankruptcy:

1. High players salaries during a non-salary cap era of the NHL
2. Low Canadian dollar
3. Financing from Covanta Energy Corp who had to seek bankruptcy protection due to Enron collapse
4. Government requirement for private land developer to pay for $27m overpass

1 - Fixed with salary cap.
2 - Dollar was trading about 50c at the time. Still not great but better (and was a lot better for a period between 2008-2012)
3 - Original building debt was around 200 mil.
4 - More original debt.

So really we are talking about the original debt and the dollar.

- When Melnyk bought the team all the debt was refinanced/negotiated down significantly. By 2007 it had all been rolled into 110 mil at 7% interest. Or approx 8 mil per year to maintain.

- By 2013 another 94 mil had been "invested" in the team on top of maintain the original debt.

- By 2018 the team debt has gone up to 200 mil. Could all the debt just be from the original debt that was never paid off. In other words, 110 mil x 1.07% x 10 years = approx 190 mil. ( I am sure Melnyk has put some money into the team but hard not to see how most of this is Debt and Debt maintenance charged back tot he team)

I think this all makes a lot of sense because otherwise I don't see how the organisation is doing so poorly compared to other similar situations. Here is a great write-up on Calgary. Are the dynamics in Ottawa really that different other than the debt? How are all these other clubs with relatively the same amount of revenue and player costs making it work and Ottawa is supposedly this financial train wreck.

The simple answer is that you can make an NHL franchise work in a small Canadian market on revenues of 120 million, but when you have to drain 15-20 mil per year into debt, and your owner is not willing to cover losses while the value skyrockets like some other small market owners, or consider the team/arena one entity like say Florida...then you have a problem.

 

[Take a Bath Son]

There's a fundamental problem with the "money pit" theory in that Melnyk seemingly refuses to sell. This can only mean 1 of 3 things:

1. Its not a money pit
2. It is, but there is an enticing long term plan to fix it that gets him really excited
3. He's insane and/or delusional

If the sum of operations-CTC and team are in fact not profitable to a degree that impacts him, he will sell. If they are profitable or within an acceptable range for a man of his wealth, he won't go anywhere. As it stands, something just doesn't add up. You've got one camp crying poor but an owner who is hanging on to these assets like golum and his precious.

I should add that liquidity and asset valuation are 2 variables that play into this. The crying poor could be a liquidity issue and the hanging on to the team may simply be a result of asset value. And this really complicates matters because he could be trying for dear life to hang on as long as he can to realize the best asset value, while torpedoing his asset in the process.

 

[Pangu]

Does the Lebreton Flats deal provide any leverage to Sens fans to getting rid of Melnyk? Is there anything that federal or municipal politicians need to sign onto that could be held up until Melnyk is gone? Is that a viable option?

 

[harrisb]

Old article but a good one, analysis of one of the poorest NHL teams in the league. Books are open as the county owns the arena, gives us a better idea of how Euge's OVERALL senators holdings are performing.

NHL Lockout: Why do billionaires keep buying teams that lose money? (Updated)

 

[Tnuoc Alucard]

Not even remotely relevant to the context of the initial post.

The original poster was lamenting the lack of a 2019 first round pick ......... I suggested that IF there was an EK65 trade, there would be a 2019 pick included, and that it could be used to move up in the Draft, if that's what the Senators wanted to do.

You chimed in with " he meant" the Senators pick that was part of the Duchene trade, to which I asked you just where the pick will be.

How is that not relevant, in view of the impending re-build that is underway?

For some reason, some people feel the Ottawa pick in the Colorado's hands is going to be the first over pick next year, or something like that, and any other first round pick that Ottawa acquires is worthless.

No one here knows where Ottawa will end up in the overall standings next year.

Did anyone here think the Avalanche, who finished 30th overall in 2016, would end up 17th overall, making the playoffs the next season?

Did anyone here think that the third last team standing in the 2017 playoffs was going to end up 30th over all in 2018?

 

[Tnuoc Alucard]

Does the Lebreton Flats deal provide any leverage to Sens fans to getting rid of Melnyk? Is there anything that federal or municipal politicians need to sign onto that could be held up until Melnyk is gone? Is that a viable option?

You've got to be kidding, right?

 

[DaveMatthew]

The original poster was lamenting the lack of a 2019 first round pick ......... I suggested that IF there was an EK65 trade, there would be a 2019 pick included, and that it could be used to move up in the Draft, if that's what the Senators wanted to do.

You chimed in with " he meant" the Senators pick that was part of the Duchene trade, to which I asked you just where the pick will be.

How is that not relevant, in view of the impending re-build that is underway?

For some reason, some people feel the Ottawa pick in the Colorado's hands is going to be the first over pick next year, or something like that, and any other first round pick that Ottawa acquires is worthless.

No one here knows where Ottawa will end up in the overall standings next year.

Did anyone here think the Avalanche, who finished 30th overall in 2016, would end up 17th overall, making the playoffs the next season?

Did anyone here think that the third last team standing in the 2017 playoffs was going to end up 30th over all in 2018?

Yes, there are always some exceptions. Teams that disappoint, and teams that surprise.

But let's look at some other teams last year. Everyone thought Buffalo would be bad, and they were bad. Everyone thought Arizona would be bad, and they were bad. Everyone thought Detroit and Vancouver would be bad, and they were bad.

What has this team done so far? We lost our #1 LWer and are about to trade Karlsson. The smart money is on this team, once again, being very bad next year.

Very bad means a top 5 pick.

The team we trade Karlsson too is probably already a contender, and will most likely be even better. That means a 20+ pick.

Big difference.

 

[Ray Kinsella]

So you don't think that a trade involving EK65, would not bring back a (first round) draft pick(s)?

I think YOU’RE a first round pick.
Analyze that which ever way you like.

 

[Pangu]

You've got to be kidding, right?

No. I don't live in Ottawa or have any knowledge about the political process involved with regard to Lebreton Flats development. I apologize if you have spent every waking moment trying to understand the ins and outs of it, and therefore have come to the belief that its a major world affair that everyone needs to know about.

However, if you could humor me, it would be appreciated: Does the Lebreton Flats deal provide any leverage to Sens fans to getting rid of Melnyk? Is there anything that federal or municipal politicians need to sign onto that could be held up until Melnyk is gone? Is that a viable option?

 

[harrisb]

No. I don't live in Ottawa or have any knowledge about the political process involved with regard to Lebreton Flats development. I apologize if you have spent every waking moment trying to understand the ins and outs of it, and therefore have come to the belief that its a major world affair that everyone needs to know about.

However, if you could humor me, it would be appreciated: Does the Lebreton Flats deal provide any leverage to Sens fans to getting rid of Melnyk? Is there anything that federal or municipal politicians need to sign onto that could be held up until Melnyk is gone? Is that a viable option?

I believe he has till the end of the year to come up with the financing, only thing fans can do is stay away and hope that he somehow doesn't get the money. Given it's probably the most valuable piece of land in all of Canada right now someone will fund him.

 

[Pangu]

I believe he has till the end of the year to come up with the financing, only thing fans can do is stay away and hope that he somehow doesn't get the money. Given it's probably the most valuable piece of land in all of Canada right now someone will fund him.

So it doesnt need the approval of any more bodies?

 

[harrisb]

So it doesnt need the approval of any more bodies?

City has to approve the zoning, they are trying to come up with an agreement on who cleans up the land (it's hugely contaminated), financing must be in place, etc. Those are the pre-reqs I can think of

 

[Tnuoc Alucard]

The team we trade Karlsson too is probably already a contender, and will most likely be even better. That means a 20+ pick.

Big difference.

Yes, but it can be used in package, to move up into a lottery spot.

 

[DaveMatthew]

Yes, but it can be used in package, to move up into a lottery spot.

Oh yeah? What other player or prospect on our roster are we packaging with that pick to move into a lottery spot? Stone, Chabot or Duchene? Great! Those are the only three that come even close to having that value.

 

[Tnuoc Alucard]

Is there anything that federal or municipal politicians need to sign onto that could be held up until Melnyk is gone? Is that a viable option?

No.

Your suggetion presumes that the Municipal Government wants to quash the Lebreton deal, on a centrally located site, that has sat dormant for over 50 years, solely to force a NHL owner, who does want to, sell his franchise.

The Federal Government, through the NCC, started the tendering/bidding process to redevelop Lebreton years ago, and awarded the right to do so, to the RLG, is not going to break of negotiations to force a NHL owner to sell his team.


LeBreton Flats Redevelopment | National Capital Commission

 

[Tnuoc Alucard]

City has to approve the zoning, they are trying to come up with an agreement on who cleans up the land (it's hugely contaminated), financing must be in place, etc. Those are the pre-reqs I can think of

It does not matter who cleans up the contaminated land, the cost of the clean up is going to be deducted from the fair market value of the purchase price of the land.

 

[YouGotAStuGoing]

force a NHL owner, who does want to, sell his franchise.

We've finally got written confirmation that Eugene Melnyk does, in fact, want to sell! It's written on the Internet so it has to be true.

Shut 'er down, boys.

 

[harrisb]

It does not matter who cleans up the contaminated land, the cost of the clean up is going to be deducted from the fair market value of the purchase price of the land.

I could turn this around 180 degrees and say it does not matter who pays to clean up the land only that it must be cleaned up by law before it can be developed. I just returned your 2 cents with change, nobody wants it.