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

JD1

Registered User
Sep 12, 2005
15,991
9,555
Agreed. The problem with trying to sell it, it's a fixer upper! Your buying a franchise that has not been run properly or taken care of extended period of time that will now cost a lot of money just to get it in scale with other teams.

Under new management will go very far but the amount of money needed invested in this franchise outside of the Lebreton is probably a lot higher then we can imagine. I won't even get into the list of things that need to fixed but this is no turn-key purchase.

Realistic the $400 million offer is more then fair considering the way EM has run it into the ground.

This franchise is going through a rebuild (aka budget slashing) on the ice but needs a complete overhual off the ice as well.

you don't get it do you? the need to invest? the reality that this team has "under invested" in hockey ops top to bottom helps the sale price....any incoming ownership group isn't obliged to spend millions buying their way out of contracts so they can bring in their own people
 

Stylizer1

SENSimillanaire
Jun 12, 2009
19,276
3,689
Ottabot City
you don't get it do you? the need to invest? the reality that this team has "under invested" in hockey ops top to bottom helps the sale price....any incoming ownership group isn't obliged to spend millions buying their way out of contracts so they can bring in their own people
You both are right.
 

Yak

Registered User
Jun 30, 2009
3,553
2,493
Los Angeles
www.androidheadlines.com
you don't get it do you? the need to invest? the reality that this team has "under invested" in hockey ops top to bottom helps the sale price....any incoming ownership group isn't obliged to spend millions buying their way out of contracts so they can bring in their own people

You have valid point for sure and do agree with your viewpoint as well.

My point is even if they buy low, they will need to invest serious money in this team no matter what. However EM has this operation running very lean so ops costs would be very low but but its poorly run so they can't keep it that way.

Buyers will have several arguments for getting barging basement price. EM will make for a case that they are not handcuffed to a lot of big contracts and they can run it as they want.

Is hard to see someone one taking EM's selling point when the hockey ops is depleted , marketing and community issues, scouting, CTC, letting go of premium player assets for prospects which may never pan out. Then their is the whole new arena thing which new owners would not be handcuffed to but knowing they would have to make a huge investment in a new arena can be scary prospect as well.

I guess it depends on the propective buyers but I think they have more of a case for a 400 Million USD bid then EM does for a higher price tag.
 

Micklebot

Moderator
Apr 27, 2010
53,145
30,369
Buyers will have several arguments for getting barging basement price. EM will make for a case that they are not handcuffed to a lot of big contracts and they can run it as they want.

Just to this point, compared to a typical team, how much would a new owner have to spend to fire top execs and bring in his own guys? I think any savings on that front might be offset by Bobby Ryan's contract and Phaneuf's retention.

I mean, how much could the GM and president of an average team be making, and how long are their contracts typically, 3 to 5 years of which you are probably already a couple years into if a sale is going down? I suspect in the scheme of things, players contracts are harder and more expensive to deal will than those of the executive.

I guess it depends on the propective buyers but I think they have more of a case for a 400 Million USD bid then EM does for a higher price tag.
Tbh, I think the price tag of a franchise has little to do with it's current state; short term problems might sway things 10-20 mil, not 100-200. The argument for a higher price tag is long term projections and potential. The team could be worth over a billion dollars in 10 years or less. That's how you pitch a higher price tag - NHL growth as a whole, not the state of the franchise now,.
 
Last edited:
  • Like
Reactions: Cosmix

Tuna99

Registered User
Sep 26, 2009
14,716
6,804
upload_2018-12-25_8-3-30.jpeg


Happier Times.

Merry Christmas everyone.
 

Qward

Because! That's why!
Jul 23, 2010
18,930
5,897
Behind you, look out
Huh, that seems odd. Why would lenders care when you paid that bonus?

There could be a few different reasons.
Before refinancing, the bank would want to know about any debt obligations. Ryans bonus is just that. Let's say that it wasn't included in the conditions, they lent the money to cover the bonus, but before it was paid, Ryan was traded away. Now Melnyk is $2M richer. Why does the bank care? There could be an early pay back clause that reduces the debt further if paid back early. That extra $2M could end up costing the bank more than that in lost profits. More often than not, the banks require you to maintain a balance of liquid assets. This is to show the financial health of the origination. That $2M hide the real situation. There are other possibilities, but without being able to see the agreement it is pure speculation.
 

coladin

Registered User
Sep 18, 2009
11,781
4,476
Huh, that seems odd. Why would lenders care when you paid that bonus?
They wouldn't. On a scale of salaries and expenses of an NHL team, it really is as ridiculous as the Uber tab run up by Karlsson
 

supsens

Registered User
Oct 6, 2013
6,577
2,000
There could be a few different reasons.
Before refinancing, the bank would want to know about any debt obligations. Ryans bonus is just that. Let's say that it wasn't included in the conditions, they lent the money to cover the bonus, but before it was paid, Ryan was traded away. Now Melnyk is $2M richer. Why does the bank care? There could be an early pay back clause that reduces the debt further if paid back early. That extra $2M could end up costing the bank more than that in lost profits. More often than not, the banks require you to maintain a balance of liquid assets. This is to show the financial health of the origination. That $2M hide the real situation. There are other possibilities, but without being able to see the agreement it is pure speculation.


He posted the info because there was rumour Bobby was being traded with EK and he was letting people know how much money was left on his contract.
Man the sens fans sure have a weird money complex
 

BonHoonLayneCornell

Registered User
Oct 16, 2006
15,229
10,452
Yukon
Not really comparable to something of this magnitude of course, but we see conditions similar to this on real estate refinancing and purchases all the time, just not quite the way its portrayed here. The banks put lawyers on undertakings to payout any loans they determined needed to be paid out and it actually comes out of the funds the bank advances. The Senators (Garrioch) had tweeted that it was paid to Bobby back on May 15 well before the refinancing was announced though.
 
  • Like
Reactions: coladin

Sens of Anarchy

Registered User
Jul 9, 2013
65,007
49,540
They wouldn't. On a scale of salaries and expenses of an NHL team, it really is as ridiculous as the Uber tab run up by Karlsson

it does say part of the conditions .... so that would imply there were others in addition to this one.
 

coladin

Registered User
Sep 18, 2009
11,781
4,476
it does say part of the conditions .... so that would imply there were others in addition to this one.

As @Gesus stated, part of notifying what's what. Like when I buy a property , or refinance, it has to be verified that the property taxes have been paid and are up to date. This is no different except how some people want to portray it.
 
  • Like
Reactions: Variable26

Ad

Upcoming events

Ad

Ad

-->