News Article: Report: NHL helps Senators recoup pay after team's major cuts

[DueDiligence]

This melnyk guy is turning in to a real problem.

Just wait. I bet there will be 2-3 other teams that will be in a similar situation in the next 6 months.

 

[Sun God Nika]

This is really good

 

[RaMai]

Just wait. I bet there will be 2-3 other teams that will be in a similar situation in the next 6 months.

Can't wait, that makes it so much better. <-- this is irony!

 

[Wallet Inspector]

 

[Xspyrit]

My dear Eugene

At some point you have to admit that it became a very expensive toy to play with. Maybe it's time to let somebody else play with it

Maybe before when you were richer, maybe before when it was costing less to operate a NHL franchise... but now considering how the cap has continued to raise, consdering this covid situation, considering that the Ottawa market has challenges and would absolutely need an arena downtown...

Time to sell Euge, thanks

- Ottawa Senators fans.

 

[Emerica]

Just wait. I bet there will be 2-3 other teams that will be in a similar situation in the next 6 months.

Ha.

If we are already at this point, imagine where we're going to be at in 6 months compared to them. Makes me feel much better.

 

[OmniSens]

This melnyk guy is turning in to a real problem.

So I've heard one or two...thousand times...

 

[DueDiligence]

Ha.

If we are already at this point, imagine where we're going to be at in 6 months compared to them. Makes me feel much better.

Other teams are there now you just haven't heard about them yet. You will when the new season is about to start.

 

[BloodRedArmy]

hmm no. example: trading EK was big news. Most Covid related are big news. Not this.

This is Covid-related, if we're splitting hairs. But yes, cutting your staff wages by 50% and being forced by the league to undo it is pretty big headline news in a hockey city.

 

[Matsens15]

Brutal... nothing surprise me anymore with Melnyk but this is BRUTAL.

 

[TkachukMyAho]

Unfortunately, there are still people that require people like Melnyk to work for a living.

If I was set in my profession - Ottawa would be the absolute last place I would want to hang my hat due to the consistent nuisances that this man creates.

I do see this as a huge problem. Anyone worth their weight will choose elsewhere, and likely for a lower salary to boot.

 

[Peptic Balcers]

Eugene missed out on 5 home games, which is around 12% of the the season’s home games and revenue. They weren’t going to make the play offs so he couldn’t have been expecting revenue from that. Considering that half of the league had some sort of reduced salary agreement (6/7 Canadian teams too) we can’t be too hard on him for that. But based off of the missed revenue, 10-15% would have been a reasonable reduction. And if you want to argue that the remaining home games were higher ticket games (Toronto, Pittsburgh and Edmonton) I’d listen to up to a 20% reduction. 50% is major overkill and the coaching staff had every right to file a formal complaint

 

[branch]

Such a miserly old f***. Even my middle of the pack consulting firm didn't cut salary. This guy is supposed to be a billionaire major league sports team owner.

 

[guyzeur]

Such a miserly old f***. Even my middle of the pack consulting firm didn't cut salary. This guy is supposed to be a billionaire major league sports team owner.

I'm curious why miserly old fart is being blocked HFB....

 

[Tundraman]

Not a lawyer but wouldn't any one sided cuts involving an employee on a fixed term contract such as coaches and managers be illegal? Unless there is a clause in their contract covering work stoppages and such, I don't see how it would be possible. Everyone else is fair game including layoffs if there is no work

 

[BonHoonLayneCornell]

I don't think anyone can say they are surprised this is happening, and if anything, I'm surprised it got resolved so quickly. I would have expected Melnyk to fight harder against being told he has no choice.

Pretty sure he'd toss his own mother on the street over a $20 bill at this point.

 

[HSF]

hopefully Melnyk invested in tsla

 

[Gil Gunderson]

Melnyk is going to take the biggest hit of all owners due to the debt he's accumulated with the team and the fact that the team and arena are his primary revenue streams.

I'd like to think he can't hold on, but he keeps finding ways.

 

[GCK]

Melnyk is going to take the biggest hit of all owners due to the debt he's accumulated with the team and the fact that the team and arena are his primary revenue streams.

I'd like to think he can't hold on, but he keeps finding ways.

Melnyk’s debt is being overblown. What is it about 160M USD.

 

[Icelevel]

Hang in there Eugene. You've got all of our support! I will pray for your family.

 

[Gil Gunderson]

Melnyk’s debt is being overblown. What is it about 160M USD.

That’s on the higher-end for NHL teams though, and others who have high debt still have other major revenue sources.

 

[GCK]

That’s on the higher-end for NHL teams though, and others who have high debt still have other major revenue sources.

My only point is that it’s not crippling at all. Debt servicing is likely less than he is paying Bobby Ryan.

 

[Joeyjoejoe]

 

[Gil Gunderson]

My only point is that it’s not crippling at all. Debt servicing is likely less than he is paying Bobby Ryan.

If that's the case than the claims of him losing millions every year from the Sens are bogus.

Melnyk also had the cheapest management/coaching staff before even paying 50%.

 

[Micklebot]

Melnyk’s debt is being overblown. What is it about 160M USD.

Hard to say. He had 135 refinanced 2 years ago, then took out a 30 mil line of credit. The team theoretically had access to around 100 mil from the league credit facility. I say theoretically because i believe it is first come first serve and there isnt enough credit for all 31 teams to take out the max. There was originally an issue with canadian teams accessing it but that was resolved.

All told, he could have accessed as much as 265 mil in debt from sources that are publicly known, then there is the possibility that he sought more and it didn't get reported (less likely imo, but possible).

Thats up to around 8 mil a year in interest if he maxed out all 265 at a 3% interest rate. It would be around 5 mil if he only had 165 in debt.