Melnyk received $400 mil offer to buy the Senators at the BOG meeting

[BonkTastic]

Click to read more...

 

[Micklebot]

Pretty sure this is just a rehash of the one Pagnotta reported on a while back

 

[The Lewler]

Sounds like an opening offer to me.

 

[BonkTastic]

Pretty sure this is just a rehash of the one Pagnotta reported on a while back

Yeah, but Friedman quoting it gives it legitimacy enough for it's own thread, IMO.

 

[IlTerrifico]

If you just state that an expansion fee can be higher than a sale price to compensate owners for losing players to expansion, and that a buy and move is tagged with a big relocation fee, this offer can be deemed reasonable, especially since last year Gene's penny-pinching roster was far inferior to what Vegas put together.

 

[Frenchy]

If you just state that an expansion fee can be higher than a sale price to compensate owners for losing players to expansion, and that a buy and move is tagged with a big relocation fee, this offer can be deemed reasonable, especially since last year Gene's penny-pinching roster was far inferior to what Vegas put together.

you're correct in your statement , but the owners ( devil's advocate ) will tell you that anything under the expension fee is unreasonable. The new owner will buy an established team with everything already there to make it ready to go , including a farm club

 

[Deku]

Not surprised by this in the slightest

 

[L'Aveuglette]

Really wish they would have upped it to at least 500 to give Eugene a bit more food for thought.

 

[Stylizer1]

Maybe that was just for the team and nothing else. I would think Melnyk wants to get rid of the CTC and surrounding land too. I can't see him not getting rid of everything in one shot and that is going to be the sticking point in any sale. Nobody wants the CTC long term if a new rink is being built. Unless of course they turn it into that super mall that has been rumoured to be built in Kanata for the last 30 years.

 

[Sun God Nika]

any rumblings of a sale are always good news, especially something so recent. Hope for more offers and bye bye Melnyk and Karlsson back in the off season.

 

[Tundraman]

All things considered if $400M was just for the team I can see why Melnyk might balk at the offer. Other than thinking the team is worth more it's also his ace card keeping at least a toe hold in any Lebreton project. If he sells without an extremely long tenancy guarantee he only has a short term tenant because the new owner will no doubt make a deal to move to Lebreton within 5 years. What does Melnyk do then with his greatly devalued arena?

There are a lot of strings attached to any potential sale of the team.

 

[Sun God Nika]

 

[thinkwild]

Melnyk complaining that he's going into debt running the team and if the fans dont show up more he may have to consider relocating.

Bettman saying dont even insult us with an offer if you're only coming to the table with $400 mil.

 

[coladin]

I heard the offer this summer was much higher. Without Lebreton, the team is not going to fetch nearly enough. It is tricky because people aren't buying the Sens to stay in Kanata. But that will be part of the deal whether they want it or not.

Sharks are out and smell blood. Refinancing. Lines of Credit. Bankers are talking about cash calls and meeting payroll. He will never rent, now he will rent.

What a mess.

 

[edguy]

Sounds to me like the start of a negotiation, and that there is interested owners in Ottawa.

All good news for us Sens fans

 

[Nac Mac Feegle]

you're correct in your statement , but the owners ( devil's advocate ) will tell you that anything under the expension fee is unreasonable. The new owner will buy an established team with everything already there to make it ready to go , including a farm club

Would the farm club automatically be included in the sale?

 

[BonHoonLayneCornell]

I heard the offer this summer was much higher. Without Lebreton, the team is not going to fetch nearly enough. It is tricky because people aren't buying the Sens to stay in Kanata. But that will be part of the deal whether they want it or not.

Sharks are out and smell blood. Refinancing. Lines of Credit. Bankers are talking about cash calls and meeting payroll. He will never rent, now he will rent.

What a mess.

Can we assume those announcements about fincancing were negotiating tactics?
I'd never heard of a professional sports team announcing financing like they did. Seemed really strange to me.

 

[Do Make Say Think]

At least someone is interested in buying this disaster of a franchise

 

[Yak]

Considering Forbes ranking of the franchise worth at $435 million in 2018, this is actually a serious offer. BOG over value this franchise with all the damage EM has done. The timing of the Seattle franchise expansion probably has a lot to with it.

EM should negotiate with the potential buyers, the franchise is not going to go up much in value with him at the helm.

 

[supsens]

The other owners wont let it sell unless they get an amount that keeps that value sky high. I guess the rest of the owners confirmed what the 'idiot bots' have been trying to explain to you smart guys. Weird eh?
Now see if you can figure out if the value of the other 31 teams matter more then keeping a team in Ottawa .

 

[Tuna99]

Alfie giving Melnyck a taste of his own cheapness medicine. Now it’s Alfies turn to low-ball Melnyck and return the favour.

Offer $401 next time Alfie!! Keep him squirming.

 

[Tuna99]

The problem with buying the Sens right now is it’s not just the $500 million you have to put in, there are other massive Captitam investments pending - Lebreton at $4 billion, and even just upgrading the CTC for the next 5-7 years until you can move which is probably easily another $50 million.

You’re not just buying a team and putting up a ‘under new management sign’ - you’re involved with multiple layers of government and the largest investment in Ottawa history. Very complicated and many richies don’t want this type of deal, they just want the team so they can watch it skate around and show Sparty Cat off to their friends

 

[JD1]

400 M US gets you into the 600M Cdn neighborhood so that may be were the higher rumours come from.

I wonder if that same offer was made today if the answer would be different?

the problem with this franchise is that it likely isn't going to work long term staying in Kanata but it's also not going to work if private money has to finance the entire cost of the new building.

the city likely never gets in bed with Melnyk with Watson as a mayor. Watson's had several opportunities to make decisions that would have helped Melnyk/the Senators but he's chosen to go in a different direction every time.

Melnyk has consistently said the team needs more revenue streams to be financially competitive. he's been saying that for 10 years. it has not happened. And here we are with a barebones operation. Like that wasn't predictable.

we can talk all we want about repairing the market... which needs to happen ... but even a repaired market isn't going to deliver the revenue streams needed to be financially competitive

and if the team is not competitive financially and Melnyk will not sell it and the BOG interest is ensuring the financial values remain high....then the remaining options are few.

 

[Micklebot]

If 400 m was the first offer, it makes sense for the league and the sens to balk at it; they want to maximize the price, and Lebreton still looked like a pretty sure thing at the time. Coming in below the Forbes Valuation when the canes recently sold for about 14% more than the estimate forbes had for them was sure to fail; perhaps an offer of around 480-500 is the middle ground where it works out, though that doesn't account for any impact Lebreton makes assuming Carolina's arena deal is considered equivalent to owning the CTC.

 

[Fandlauer]

I mean, given the state of the franchise any buyer would be crazy to offer Melnyk full pop. As much as it sucks as a fan, the smart play is just to wait Melnyk out.