Rumor: Ottawa Senators in for potential Ownership Change

[RandR]

I'd also like to add that all those who claim he is in extreme financial trouble, have yet to explain how the NCC, in their due diligence investigations into the Lebreton bidding process, did not discover these alleged financial problems, and ended up awarding his group the rights to the development.

I suspect if there was any indication that his group would not have the financial backing, and the ability to carry the project forward as claimed in the bidding process, that the NCC would not have awarded his group the rights to develop.

Here's your answer.

Basically, the Rendezvous proposal was picked because the proposal itself was superior to DevCore's. As described in that article, even the superior "financial viability" of the Rendezvous proposal had nothing to do with how deep the combined pockets of the entire Rendezvous group were compared to those backing the DevCore bid. At the public hearings I spoke to Mark Kristmanson and remember asking him, amongst other things, how, given the history of how the Senators came into being, the NCC would be able to ensure that they weren't going to turn over their land to a bidder that ultimately may not be able to fund what they've promised. The short answer is that it is in the current phase of negotiations where, among other matters, financing of the deal is being fleshed out.

All 3 levels of government have expressed opposition to any kind of public funding for the Lebreton redevelopment, and there's reason to believe that Melynk himself has nowhere near enough of his own money to fund more than a minority stake. My guess is that Melynk's stake will be quite a small percentage, and the only way the project comes to life with a new arena as the anchor is if his partners in the Rendezvous bid or other investors provide the lion's share of the funding. And it makes sense to me that one of the conditions for them to do so is if they can assume at least a partial stake in the ownership of at least the arena, and thus potentially also the team itself.

 

[The Lewler]

Here's your answer.

Basically, the Rendezvous proposal was picked because the proposal itself was superior to DevCore's. As described in that article, even the superior "financial viability" of the Rendezvous proposal dealt with had nothing to do with how deep the combined pockets of the entire Rendezvous group were compared to those backing the DevCore bid. I attended the public hearings and spoke to Mark Kristmanson and remember asking him, amongst other things, how, given the history of how the Senators came into being, the NCC would be able to ensure that they weren't going to turn over their land to a bidder that ultimately may not be able to fund what they've promised. The short answer is that it is in the current phase of negotiations where, among other matters, financing of the deal is being fleshed out.

All 3 levels of government have expressed opposition to any kind of public funding for the Lebreton redevelopment, and there's reason to believe that Melynk himself has nowhere near enough of his own money to fund more than a minority stake. My guess is that Melynk's stake will be quite a small percentage, and the only way the project comes to life with a new arena as the anchor is if his partners in the Rendezvous bid or other investors provide the bulk of the funding. And it makes sense to me that one of the conditions for them to do so if they can assume at least a partial stake in the ownership of at least the arena, and thus potentially also the team itself.

This guy businesses'.

 

[JD1]

I don't know that it qualifies as epic, but here are just a couple strains on his finances:
Lose access to NHL low interest loans resulting in 150 mil financing deal estimated wat 10% or higher interest rate
NHL’s low-interest line of credit ruled offside in Canada
Sued for 1.55 mil by former executive
Former Ottawa Senators executive sues Melnyk, team for $1.55M; alleges discord behind the scenes
Team Lost 94 mil
Under Eugene Melnyk, Senators have lost $94 million


I think he divorced which could have some implications, and there were some failed ventures like the orgasm nasal spray, and his attempt to build a casino that probably hurt him financially. The Canadian dollar being where it's at doesn't help at all either.

I always find it interesting how much gets posted on this board about Melnyk' finances and the team financial situation and it's accepted as fact.

Melnyk's net worth in 2017 is 1.2 billion. If someone doesn't' like that number or thinks it's BS that's fine but take your concerns up with the Canadian Business Insider publication that compiles these lists. While your complaint is being investigated how about as a fanbase we accept what the people compiling lists have to say?

The season prior to our run we had 118M in revenue. That figure is net of debt payment. The team turned a 6.3M operating profit on that number. We didn't make the playoffs that year. Last year we had 9 home playoff dates which likely added 25M to total revenues. Again I suggest that if someone has issues with those numbers then take it up with Forbes who compiles the lists. That's what the nhlpa did because they think team revenues are HIGHER.

There are credible sources available with a quick Google search on Melnyk's finances and the teams finances. Why can we not just cite this info when discussing finances rather than accept unfounded statements of him being broke.

Yes there is an article in the citizen that is 4 years old citing losses. His increase in equity value more than offsets that.

The new Forbes data is due any day. it'l be interesting to see how it has changed in light of the Flats situation.

Btw...his net worth takes into account the alleged 300 M his divorce cost because that was a few years ago.

As for Lebreton....it is a multi year build out. he has a major partner already. it is not as though he needs to walk in the door and slam down 4 billion.

 

[Qward]

I am good for $40.
$50 if we car pool to investors meetings.

 

[pepty]

Well this is disappointing.

There's nothing to the talk that Sens are for sale, Anselmi says

Anselmi looks like a man who is not having a lot of fun.

 

[Qward]

This is a damned if you do damned if you dont type of rumor.
Regardless of the business, whenever there is the potential of sale or merger or whatnot, the best course is to deny. Rumors impact all parties involved.
I still hope he sells. Ever decision made has increased my distaste for him.

 

[Korpse]

Well this is disappointing.

There's nothing to the talk that Sens are for sale, Anselmi says

Anselmi looks like a man who is not having a lot of fun.

No "For Sale" sign, only a "Sold" sign.

 

[MarkStone]

Well this is disappointing.

There's nothing to the talk that Sens are for sale, Anselmi says

Anselmi looks like a man who is not having a lot of fun.

To be fair, if they were in the process of selling or handing over a partial ownership stake his job wouldn't really be to strengthen the rumours anyway, would it?

 

[Micklebot]

I always find it interesting how much gets posted on this board about Melnyk' finances and the team financial situation and it's accepted as fact.

Melnyk's net worth in 2017 is 1.2 billion. If someone doesn't' like that number or thinks it's BS that's fine but take your concerns up with the Canadian Business Insider publication that compiles these lists. While your complaint is being investigated how about as a fanbase we accept what the people compiling lists have to say?

The season prior to our run we had 118M in revenue. That figure is net of debt payment. The team turned a 6.3M operating profit on that number. We didn't make the playoffs that year. Last year we had 9 home playoff dates which likely added 25M to total revenues. Again I suggest that if someone has issues with those numbers then take it up with Forbes who compiles the lists. That's what the nhlpa did because they think team revenues are HIGHER.

There are credible sources available with a quick Google search on Melnyk's finances and the teams finances. Why can we not just cite this info when discussing finances rather than accept unfounded statements of him being broke.

Yes there is an article in the citizen that is 4 years old citing losses. His increase in equity value more than offsets that.

The new Forbes data is due any day. it'l be interesting to see how it has changed in light of the Flats situation.

Btw...his net worth takes into account the alleged 300 M his divorce cost because that was a few years ago.

As for Lebreton....it is a multi year build out. he has a major partner already. it is not as though he needs to walk in the door and slam down 4 billion.

Here's the problem though; lists of wealthiest people, and most valuable franchises aren't exactly what I'd call facts. There best guesses, which have been extremely wrong at times, because frankly, they don't have access to the actual numbers. Forbes literally just modified it's estimate for Wilbur Ross because the overestimated his wealth by 414%. The culprit for their massive error? He told them he was richer than he was. Bill Daly has been critical of Forbes valuation lists in the past, noting that they don't have access to the required financial information.

My point of posting those articles wasn't to prove he's in a financial crisis, but rather to point out that there is conflicting information out there which is fueling the speculation. At the end of the day, there are very few actual facts available in relation to his financial situation, just varying degrees of speculation.

 

[Masked]

Well this is disappointing.

There's nothing to the talk that Sens are for sale, Anselmi says

Anselmi looks like a man who is not having a lot of fun.

Note the quote in the paper never actually specifies what he's denying.

 

[Nac Mac Feegle]

I always find it interesting how much gets posted on this board about Melnyk' finances and the team financial situation and it's accepted as fact.

Melnyk's net worth in 2017 is 1.2 billion. If someone doesn't' like that number or thinks it's BS that's fine but take your concerns up with the Canadian Business Insider publication that compiles these lists. While your complaint is being investigated how about as a fanbase we accept what the people compiling lists have to say?

The season prior to our run we had 118M in revenue. That figure is net of debt payment. The team turned a 6.3M operating profit on that number. We didn't make the playoffs that year. Last year we had 9 home playoff dates which likely added 25M to total revenues. Again I suggest that if someone has issues with those numbers then take it up with Forbes who compiles the lists. That's what the nhlpa did because they think team revenues are HIGHER.

There are credible sources available with a quick Google search on Melnyk's finances and the teams finances. Why can we not just cite this info when discussing finances rather than accept unfounded statements of him being broke.

Yes there is an article in the citizen that is 4 years old citing losses. His increase in equity value more than offsets that.

The new Forbes data is due any day. it'l be interesting to see how it has changed in light of the Flats situation.

Btw...his net worth takes into account the alleged 300 M his divorce cost because that was a few years ago.

As for Lebreton....it is a multi year build out. he has a major partner already. it is not as though he needs to walk in the door and slam down 4 billion.

It's not that simple. Melynk doesn't have 1.2 billion sitting in a bank account somewhere. A lot of that capital is in investments that are not liquid (many CEOs and high end business folks have limits on how much stock/stake in a business they can sell or use as collateral in a specific time period). Some of that value also doesn't take into account the cost of turning it liquid (taxes, fees, etc). And some of it is based on the top selling price possible (in many cases, unrealistic) for certain entities.


The average person might have a net worth around a million dollars when you take into account home value, vehicles, retirement savings, furniture value, etc....but that doesn't mean that person can slap down $40k for a new vehicle like it's nothing.

 

[Gil Gunderson]

Why is he so unlikeable?

 

[Very Stable Genius]

Saying he misses a piece of scum who was fired for serial sexual harassment is bad optics no matter what anyone says.

 

[JD1]

Here's the problem though; lists of wealthiest people, and most valuable franchises aren't exactly what I'd call facts. There best guesses, which have been extremely wrong at times, because frankly, they don't have access to the actual numbers. Forbes literally just modified it's estimate for Wilbur Ross because the overestimated his wealth by 414%. The culprit for their massive error? He told them he was richer than he was. Bill Daly has been critical of Forbes valuation lists in the past, noting that they don't have access to the required financial information.

My point of posting those articles wasn't to prove he's in a financial crisis, but rather to point out that there is conflicting information out there which is fueling the speculation. At the end of the day, there are very few actual facts available in relation to his financial situation, just varying degrees of speculation.

what do you call facts? I post data from sources that are very credible names in terms of being highly respected in their industry but that's not good enough...let' go which the BS that gets posted here. Give me a break. You used to be a very credible poster on these boards but you dipping into twisting reality to fit your narrative. idk....maybe hanging here does that to you.

do you have access to actual numbers?

there wasn't any conflicting info. I questioned what epic financial sutuaton. you posted a 4 year old citizen article that pre dates huge increases in the Sens revenue streams, you mumbled something about a divorce and another link to a disgruntled employee lawsuit. in response I posted up to date data from the most credible sources that exist, which doesn't make them infallible, and your claiming it's not credible. whatever man.

At this point I will watch my words. We are not debating from equal positions here. you can choose to accept the most comprehensive data available on the world's wealthiest people or you can continue with your head in the sand.

 

[BondraTime]

what do you call facts? I post data from sources that are very credible names in terms of being highly respected in their industry but that's not good enough...let' go which the BS that gets posted here. Give me a break. You used to be a very credible poster on these boards but you dipping into twisting reality to fit your narrative. idk....maybe hanging here does that to you.

do you have access to actual numbers?

there wasn't any conflicting info. I questioned what epic financial sutuaton. you posted a 4 year old citizen article that pre dates huge increases in the Sens revenue streams, you mumbled something about a divorce and another link to a disgruntled employee lawsuit. in response I posted up to date data from the most credible sources that exist, which doesn't make them infallible, and your claiming it's not credible. whatever man.

At this point I will watch my words. We are not debating from equal positions here. you can choose to accept the most comprehensive data available on the world's wealthiest people or you can continue with your head in the sand.

 

[Micklebot]

what do you call facts? I post data from sources that are very credible names in terms of being highly respected in their industry but that's not good enough...let' go which the BS that gets posted here. Give me a break. You used to be a very credible poster on these boards but you dipping into twisting reality to fit your narrative. idk....maybe hanging here does that to you.

do you have access to actual numbers?

there wasn't any conflicting info. I questioned what epic financial sutuaton. you posted a 4 year old citizen article that pre dates huge increases in the Sens revenue streams, you mumbled something about a divorce and another link to a disgruntled employee lawsuit. in response I posted up to date data from the most credible sources that exist, which doesn't make them infallible, and your claiming it's not credible. whatever man.

At this point I will watch my words. We are not debating from equal positions here. you can choose to accept the most comprehensive data available on the world's wealthiest people or you can continue with your head in the sand.

I think you're missing the point I'm trying to make. As credible as Forbes is, their lists of franchise valuations, and HRR estimates has been disputed by the league as being unfounded. Their estimate of wealthiest people have been way off (Wilbur Ross for example was estimated at 2.9 billion, but declared 700k when under oath) due to a flawed methodology. I'm pointing out that facts aren't really available, so while they may be the most comprehensive financial data we have, they aren't really all that reliable in the scheme of things. They are gossip for financial news.

Nobody should be saying Melnyk is poor, but there is certainly the possibility that his net worth is exaggerated, and there is certainly the possibility that his liquidity is putting him in a tight spot. I suspect claims that he's in some sort of financial crisis are exaggerated too, but I'm not going to discount the possibility he may be having issues.

 

[BondraTime]

An owner in a stable financial state doesn't ensure a trade agreed to months before is dragged out for months to ensure they don't have to pay a 2 million dollar bonus, all the while giving up a 2nd round draft pick to ensure they didn't have to pay.

If he is in a stable financial spot and he still ensured this happened, that is a whole other bad story.

 

[FolignoQuantumLeap]

Why is he so unlikeable?

He's such a sleazy piece of trash. I really hope we can get him out of our community soon. Wish more Sens fans would openly just say they don't want to support the team because of this idiot. Would go a long way.

 

[Fandlauer]

Hopefully Melnyk going full idgaf mode with his Twitter account is a good sign.

 

[Tnuoc Alucard]

I always find it interesting how much gets posted on this board about Melnyk' finances and the team financial situation and it's accepted as fact.

Melnyk's net worth in 2017 is 1.2 billion. If someone doesn't' like that number or thinks it's BS that's fine but take your concerns up with the Canadian Business Insider publication that compiles these lists. While your complaint is being investigated how about as a fanbase we accept what the people compiling lists have to say?

The season prior to our run we had 118M in revenue. That figure is net of debt payment. The team turned a 6.3M operating profit on that number. We didn't make the playoffs that year. Last year we had 9 home playoff dates which likely added 25M to total revenues. Again I suggest that if someone has issues with those numbers then take it up with Forbes who compiles the lists. That's what the nhlpa did because they think team revenues are HIGHER.

There are credible sources available with a quick Google search on Melnyk's finances and the teams finances. Why can we not just cite this info when discussing finances rather than accept unfounded statements of him being broke.

Yes there is an article in the citizen that is 4 years old citing losses. His increase in equity value more than offsets that.

Great post, I've been trying to discredit all the rumours for a few days now....... but to many people, who dislike the Owner, desperately want the owner gone from the Senators equation, and just "buy in" to these unfounded rumours.

You have articulated the situation perfectly.
The new Forbes data is due any day. it'l be interesting to see how it has changed in light of the Flats situation.

Btw...his net worth takes into account the alleged 300 M his divorce cost because that was a few years ago.

As for Lebreton....it is a multi year build out. he has a major partner already. it is not as though he needs to walk in the door and slam down 4 billion.

 

[Tnuoc Alucard]

Well this is disappointing.

There's nothing to the talk that Sens are for sale, Anselmi says

Anselmi looks like a man who is not having a lot of fun.

This is great news, stable ownership, and the prospect of downtown Arena on the horizon .............. can't happen soon enough.

 

[Tnuoc Alucard]

what do you call facts? I post data from sources that are very credible names in terms of being highly respected in their industry but that's not good enough...let' go which the BS that gets posted here. Give me a break. You used to be a very credible poster on these boards but you dipping into twisting reality to fit your narrative. idk....maybe hanging here does that to you.

do you have access to actual numbers?

there wasn't any conflicting info. I questioned what epic financial sutuaton. you posted a 4 year old citizen article that pre dates huge increases in the Sens revenue streams, you mumbled something about a divorce and another link to a disgruntled employee lawsuit. in response I posted up to date data from the most credible sources that exist, which doesn't make them infallible, and your claiming it's not credible. whatever man.

At this point I will watch my words. We are not debating from equal positions here. you can choose to accept the most comprehensive data available on the world's wealthiest people or you can continue with your head in the sand.

 

[Pierre from Orleans]

This is great news, stable ownership, and the prospect of downtown Arena on the horizon .............. can't happen soon enough.

How is Melnyk stable?

 

[FolignoQuantumLeap]

How is Melnyk stable?

That's where he keeps the horses he likes to gamble on.

 

[Masked]

what do you call facts? I post data from sources that are very credible names in terms of being highly respected in their industry but that's not good enough...let' go which the BS that gets posted here. Give me a break. You used to be a very credible poster on these boards but you dipping into twisting reality to fit your narrative. idk....maybe hanging here does that to you.

do you have access to actual numbers?

there wasn't any conflicting info. I questioned what epic financial sutuaton. you posted a 4 year old citizen article that pre dates huge increases in the Sens revenue streams, you mumbled something about a divorce and another link to a disgruntled employee lawsuit. in response I posted up to date data from the most credible sources that exist, which doesn't make them infallible, and your claiming it's not credible. whatever man.

At this point I will watch my words. We are not debating from equal positions here. you can choose to accept the most comprehensive data available on the world's wealthiest people or you can continue with your head in the sand.

So tell me how Forbes gets its financial information about the NHL? That's not public information and the NHL is not giving it to Forbes. They can make estimates since there is some public information - attendance, ticket prices, broadcast deals, etc but even that data is problematic.

You believing that Forbes has the true picture of the NHL's financials is pretty much digging your head in the sand.