People have been trying to buy the Sens

[BonHoonLayneCornell]

I believe the part about mental stability tbh. Every time he opens his mouth he sounds like a crazy person sabataging his own product.

He seems to want to hang on tooth and nail to a product he doesnt actually give a crap about. Its all very confusing unless its all finacially motivated.

 

[Xspyrit]

Or empty the arena till he accepts the offer.

The bonus for my plan is that it costs Melnyk $!

I feel it's counterproductive though. The more money he loses, the more money he will want to recoup in a potential sale.

If Alfie is going to be involved with new ownership, you’d think he would want Karlsson though.

EK still control his destiny though... If there was a change in ownership with Alfie involved, Ottawa would be the most likely destination for EK.

 

[topshelf15]

This isnt really news ,EM is acting like a dead man walking as far as continuing to be an NHL owner...The problem is as it always is ....Money

 

[armani]

What wondercarrot was alluding to and what mysens have been saying are similar to what you heard. I have done my own digging and know the folks who are trying to buy from Melnyk. As I've always maintained, it's not a matter of if but when.

#1 and #2 align with what I know. #3 is funny if true.

 

[coladin]

I said this back on August 1. There are stumbling blocks and complications that have prolonged things. He won't sell the whole thing. Part of the problem is he wants a piece of Lebreton and will not sell the whole thing.

 

[The Lewler]

Melnyk's not wrong about point #1.

Maybe yes maybe no.

Vegas is in a 2 year old building, so that is a known quantity for the most part in terms of revenues and expenses.

Also, the state of debt the team is holding would also be material to evaluating it's value.

There is also the not so talked about issue of exchange rates costs moving forward in an inflationary environment.

But on the plus side, Lebreton could be a huge add, and league expansion could net a new owner tidy sums and increased league revenues. We arent really sure yet.

 

[coladin]

Maybe yes maybe no.

Vegas is in a 2 year old building, so that is a known quantity for the most part in terms of revenues and expenses.

Also, the state of debt the team is holding would also be material to evaluating it's value.

There is also the not so talked about issue of exchange rates costs moving forward in an inflationary environment.

But on the plus side, Lebreton could be a huge add, and league expansion could net a new owner tidy sums and increased league revenues. We arent really sure yet.

Which most likely makes $600M the starting point, not the end point.

 

[Engineer]

Which most likely makes $600M the starting point, not the end point.

Maybe yes maybe no.

 

[The Lewler]

Which most likely makes $600M the starting point, not the end point.

Yeah fair enough.

That's his ask. We could easily end up significantly over it, or significantly under it depending what all those nice financial details actually project out to.

 

[Micklebot]

EK was traded after getting a lowball offer...i don't get how that is stalling.

I'm not sure I buy it either, but perhaps he was stringing them along pretending he might sign for the right offer between the trade deadline and 1 Jul?

#3 is ridiculous though. Can't imaging anyone would do that even if they thought it was true.

 

[coladin]

Maybe yes maybe no.

Or maybe no and maybe yes.

 

[harrisb]

I'm not sure I buy it either, but perhaps he was stringing them along pretending he might sign for the right offer between the trade deadline and 1 Jul?

#3 is ridiculous though. Can't imaging anyone would do that even if they thought it was true.

I thought so too however what if his ex-wife is half owner? She may have been the one that reported him lol

 

[Masked]

Melnyk's not wrong about point #1.

He sort of is. With an expansion franchise you're buying a share of the league wide revenues from the other franchise holders. You have to compensate them for taking their 1/30 share of things like national tv deals and making it into a 1/31 share. With a straight sale, the expected value would be based solely on the operations of the franchise or what someone will pay for it.

 

[Alf Silfversson]

I'm not sure I buy it either, but perhaps he was stringing them along pretending he might sign for the right offer between the trade deadline and 1 Jul?

#3 is ridiculous though. Can't imaging anyone would do that even if they thought it was true.

I thought so too. It was a throw in at the end of the conversation so I didn't even really get a chance to follow up. The whole things is just bizarre though so nothing is really throwing me at this point.

 

[Alf Silfversson]

Melnyk's not wrong about point #1.

Apparently these investors feel that he is.

They don't think a small market team with a relative lack of corporate presence is worth Melnyk's number. Sadly it doesn't sound like they're that close either.

 

[Micklebot]

He sort of is. With an expansion franchise you're buying a share of the league wide revenues from the other franchise holders. You have to compensate them for taking their 1/30 share of things like national tv deals and making it into a 1/31 share. With a straight sale, the expected value would be based solely on the operations of the franchise or what someone will pay for it.

Vegas also was given the most insane expansion draft rules I've ever seen. They not only bought a franchise, they also bought a jumpstart for their roster.

 

[BonkTastic]

Apparently these investors feel that he is.

They don't think a small market team with a relative lack of corporate presence is worth Melnyk's number. Sadly it doesn't sound like they're that close either.

Dundon bought 61% of the Carolina Hurricanes and their 20-year-old arena in a post-Vegas-economics NHL for $420mil. That figure would mean that a 100% of the Carolina Hurricanes team and the arena was valued in the $700mil range.

Considering the Carolina Hurricanes are probably one of the three least valuable teams in the NHL, I don't think Melnyk and his 22 year old arena should think that $600mil is an unreasonable floor at all, especially with the potential to make money hands over fist with a new state of the art downtown arena.

This is the new economic reality of the NHL.

 

[MiscBrah]

Dundon bought 61% of the Carolina Hurricanes and their 20-year-old arena in a post-Vegas-economics NHL for $420mil. That figure would mean that a 100% of the Carolina Hurricanes team and the arena was valued in the $700mil range.

Considering the Carolina Hurricanes are probably one of the three least valuable teams in the NHL, I don't think Melnyk and his 22 year old arena should think that $600mil is an unreasonable floor at all, especially with the potential to make money hands over fist with a new state of the art downtown arena.

This is the new economic reality of the NHL.

I agree with you to an extent. The issue I'm thinking about is the fact that non-hockey related revenue is significant in American markets whereas I don't think it is that strong in Ottawa. IIRC, Florida Panthers make more money off of concerts and other events than they do from ticket sales for the team (someone please correct me if I'm wrong). That could be a factor that substantially increases the value of franchise over and above what the hockey franchise itself is worth.

 

[swiftwin]

Dundon bought 61% of the Carolina Hurricanes and their 20-year-old arena in a post-Vegas-economics NHL for $420mil. That figure would mean that a 100% of the Carolina Hurricanes team and the arena was valued in the $700mil range.

Considering the Carolina Hurricanes are probably one of the three least valuable teams in the NHL, I don't think Melnyk and his 22 year old arena should think that $600mil is an unreasonable floor at all, especially with the potential to make money hands over fist with a new state of the art downtown arena.

This is the new economic reality of the NHL.

Except my gut feeling is that the potential investors see Melnyk as being in a vulnerable position due to his finances. They are probably trying to low ball him and get the team, the arena, and the Lebreton bid on the cheap. Especially if Melnyk struggles or is unable to develop Lebreton. It's probably why Melnyk said "we can stay in Kanata if we have to" last December. He's f***ed, and the vultures are circling. It's the same way Karlsson didn't return his "true value". There's more to this that just the intrinsic value of the franchise.

 

[Sensung]

Except my gut feeling is that the potential investors see Melnyk as being in a vulnerable position due to his finances. They are probably trying to low ball him and get the team, the arena, and the Lebreton bid on the cheap. Especially if Melnyk struggles or is unable to develop Lebreton. It's probably why Melnyk said "we can stay in Kanata if we have to" last December. He's ****ed, and the vultures are circling. It's the same way Karlsson didn't return his "true value". There's more to this that just the intrinsic value of the franchise.

Yup.

And the boycott is our opportunity to kick this prick while he is down and help lower his asking price.

Couldn't happen to a more deserving guy.

 

[JD1]

Dundon bought 61% of the Carolina Hurricanes and their 20-year-old arena in a post-Vegas-economics NHL for $420mil. That figure would mean that a 100% of the Carolina Hurricanes team and the arena was valued in the $700mil range.

Considering the Carolina Hurricanes are probably one of the three least valuable teams in the NHL, I don't think Melnyk and his 22 year old arena should think that $600mil is an unreasonable floor at all, especially with the potential to make money hands over fist with a new state of the art downtown arena.

This is the new economic reality of the NHL.

making money hand over fist because of a new arena gets said often. I just don't see it. An increase in attendance and average ticket prices I see. more non hockey use I don't.

if Melnyk separates the team from lebreton and wants the sale of the sports entity but keep his position in the lebreton deal then this thing will never be sold. 600M for what eists plus another 600 M to build a new rink. maybe 100M salvageable on the existing property. Man that's a lot of cabbage and I don't see the numbers adding up. Maybe with a love affair with the rink you could squeeze and extra 20M in ticket sales but that's about it. and that wouldn't support the acquisition costs.

 

[TheGeneral]

Let's buy the team as fans. The Green Bay Packers did it. Donate to non controlling shares to close the financial gap between the alleged Alfie group and melnyks alleged price tag

LOL... But still...

 

[Micklebot]

Dundon bought 61% of the Carolina Hurricanes and their 20-year-old arena in a post-Vegas-economics NHL for $420mil. That figure would mean that a 100% of the Carolina Hurricanes team and the arena was valued in the $700mil range.

Considering the Carolina Hurricanes are probably one of the three least valuable teams in the NHL, I don't think Melnyk and his 22 year old arena should think that $600mil is an unreasonable floor at all, especially with the potential to make money hands over fist with a new state of the art downtown arena.

This is the new economic reality of the NHL.

Forbes was reporting the enterprise value as 420, not the sale price for 61% of the enterprise. Not sure if that's true, or maybe I misinterpreted it, but they did talk about how the 500 mil VGK paid was not the floor for the EV of an NHL team.

 

[Silencio]

Melnyk is certainly eccentric, but mentally unwell? As someone who lost a close friend to actual mental illness I don't like seeing that term just thrown around, especially if it's to gain the upper hand in a business transaction (not saying OP did this, I know you're only passing along what you heard).

 

[Sensung]

making money hand over fist because of a new arena gets said often. I just don't see it. An increase in attendance and average ticket prices I see. more non hockey use I don't.

if Melnyk separates the team from lebreton and wants the sale of the sports entity but keep his position in the lebreton deal then this thing will never be sold. 600M for what eists plus another 600 M to build a new rink. maybe 100M salvageable on the existing property. Man that's a lot of cabbage and I don't see the numbers adding up. Maybe with a love affair with the rink you could squeeze and extra 20M in ticket sales but that's about it. and that wouldn't support the acquisition costs.

And yet Billionaires keep lining up to purchase teams...weird don't you think?