NCC terminates Lebreton deal : Mediation to save the deal underway

[Joeyjoejoe]

"The termination of the term sheet will allow the NCC to proceed with the next steps in the redevelopment process at its next public Board meeting in January."

"It doesn't get any better than this"- Eugene Melnyk

Click to read more...

 

[Gil Gunderson]

It’s pretty much Devcore’s to lose now, no?

 

[Peptic Balcers]

come get your mans gary

 

[DaveMatthew]

Another great deal signed, sealed and delivered by Eugene!

 

[justafan22]

come get your mans gary

Really shocked he hasn't chimed in yet. We all know he was pissed about the outdoor game comments last year

 

[The Lewler]

Another poster actually made this point, I wouldn't be surprised to see someone try to sue the NCC now lol.

Anyway, reset the Sens incident counter.

[mod]

 

[Take a Bath Son]

Another feather in the cap of blunders that the Senators organization has worn so well. The past 12 months have been nothing short of mind boggling.

Hopefully this paves the way for Devcore and new ownership. This was an epic fail.

 

[Sun God Nika]

reset the clock.

This could be good or bad, Devcore is our only hope. The senators will not be possible in Kanata long term.

if Devcore wins and leaves space for a arena and does have active buyers for the team, there is little next to nothing Melnyk can do but sell, NHL will not allow relocation with local buyers available.

 

[swiftwin]

Statement on the redevelopment of LeBreton Flats | National Capital Commission

The NCC Board of Directors has resolved to terminate the preferred proponent term sheet, which was signed January 19, 2018, between Rendez-Vous LeBreton Group (RLG) and the NCC. Termination is effective 30 days following the issuance of the notice to this effect

Not terminated quite yet.

 

[coladin]

Oh well. What a sad state of affairs.

 

[BonHoonLayneCornell]

Was a formality at this point.

The dream is dead atm which sucks, but it's just what had to happen. I'd rather no new arena than see this guy get to cut the ribbon one day.

 

[Peptic Balcers]

being a sens fan is a lot like marrying someone and then finding out that they're the type of person to put one of their hairs in their food at restaurants and then demand that the manager gives them their meal for free

 

[Gil Gunderson]

What a giant waste of time.

 

[Sens]

Look forward to the Melnyk army spinning this as a positive for Melnyk

 

[Sun God Nika]

this actually pisses me off
Termination is effective 30 days following the issuance of the notice to this effect

Always has to be a f***ing process, terminate it now and start making moves for f***s sake.

 

[armani]

Hopefully, Melnyk sells before season ends and we get to see a billionaire cock fight in court. They will likely settle out of court with Melnyk paying hefty along with the unpaid 50% contributions to bid compliance costs. He will have to sell, or lose all his wealth from #EmptyCTC.

What a loser!

 

[Sun God Nika]

Hopefully, Melnyk sells before season ends and we get to see a billionaire cock fight in court. They will likely settle out of court with Melnyk paying hefty along with the unpaid 50% contributions to bid compliance costs. He will have to sell, or lose all his wealth from #EmptyCTC.

What a loser!

best case scenario Melnyk forced to sell the team for a discount , Melnyk gets sued for 1B and the Melnyk family officially loses all their wealth and starts from zero. Yes I'm bitter but then again he is the sole reason we lost two franchise players that had no business playing for another team.

 

[Do Make Say Think]

this actually pisses me off
Termination is effective 30 days following the issuance of the notice to this effect

Always has to be a ****ing process, terminate it now and start making moves for ****s sake.

You want accountability? This is the kind of stuff needed to help hold public institutions accountable.

 

[BondraTime]

best case scenario Melnyk forced to sell the team for a discount , Melnyk gets sued for 1B and the Melnyk family officially loses all their wealth and starts from zero. Yes I'm bitter but then again he is the sole reason we lost two franchise players that had no business playing for another team.

The NHL won't let him sell for a discount, the minimum they will allow a sale is what Vegas paid to get in the league, especially with Seattle now paying for a team as well.

 

[ToastrStutzle]

Eugene is a joke.

 

[The Lewler]

The NHL won't let him sell for a discount, the minimum they will allow a sale is what Vegas paid to get in the league, especially with Seattle now paying for a team as well.

I'm not sure that's a thing Bondra. I don't see how the league could dictate the actual sale price if the current owner and new owner consent.

What are your thoughts on how that would go down? The board of governors would block the sale?

 

[Boud]

The NHL won't let him sell for a discount, the minimum they will allow a sale is what Vegas paid to get in the league, especially with Seattle now paying for a team as well.

There's a difference between buying a team with a clean slate and buying a team with important amount of debt. Also the expansion fee contains different things that do not relate to a normal sale.

 

[Danythegod]

News conference for dorion:

“Lebreton is a good area, nice size and was valuable to us during the past three years... with that, Lebreton doesn’t fit our mould of where we are going with the senators”....

 

[BondraTime]

I'm not sure that's a thing Bondra. I don't see how the league could dictate the actual sale price if the current owner and new owner consent.

What are your thoughts on how that would go down? The board of governors would block the sale?

Dundon just bought the Canes (he's a 61% stake owner) for 450 million. He has the option to buy the other 39% stake in 3 years.

With Seattle coming into the league for xxx amount, they aren't going to allow someone to undercut that price by a substantial amount.

 

[DaveMatthew]

The NHL won't let him sell for a discount, the minimum they will allow a sale is what Vegas paid to get in the league, especially with Seattle now paying for a team as well.

Not necessarily. Expansion and the sale of an existing franchise in a very different market are two separate things.

Carolina was sold, in 2017, for $420M, which was reportedly 3.9x 2016/2017 revenues. The expansion fee for Vegas, in 2016, was higher than that at $500M.

Media outlets are reporting the value of the sale as $550 million. Not true. Two people with first-hand knowledge of the sale have told me the enterprise value was $420 million. Still, the sale price is 13.5% more than our valuation of the NHL team last month.

For the NHL, the $420 million enterprise value hammers home the point that expansion team prices do not equate to a floor for team values. The expansion fee paid by Vegas Golden Knights, which joined the league this season, was $500 million. And the next expansion team, possibly in Seattle, may indeed go for over $600 million.
But the Hurricanes were a debt-laden, thinly capitalized franchise and Karmanos--who bought the team for $47.5 million in 1994--has wanted out for a few years.

Carolina Hurricanes Sold To Tom Dundon For $420 Million

Worth noting that Dundon did not actually pay the $420M, but the amount he paid for 61% means the whole team was valued at $420M. He would have paid ~$256M.