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

[GCK]

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%.

Correct. My info is that he has never lost money when we have made the playoffs. The team has likely lost about 70M over the course of his ownership. I knew the former longtime CFO and she told me after she left the job that that there were actually a few profitable seasons but on average had a net loss of about 5-10M in the other years.

 

[Gil Gunderson]

Correct. My info is that he has never lost money when we have made the playoffs. The team has likely lost about 70M over the course of his ownership. I knew the former longtime CFO and she told me after she left the job that that there were actually a few profitable seasons but on average had a net loss of about 5-10M in the other years.

Sure, but the value of the team increased by like 300 million since he bought it, which is the main reason why billionaires buy NHL teams.

His cries about the Sens bleeding money are misleading.

 

[GCK]

Sure, but the value of the team increased by like 300 million since he bought it, which is the main reason why billionaires buy NHL teams.

His cries about the Sens bleeding money are misleading.

Correct.

 

[Leafmealone11]

Sure, but the value of the team increased by like 300 million since he bought it, which is the main reason why billionaires buy NHL teams.

His cries about the Sens bleeding money are misleading.

Original cost plus debt leaves 200 million after sale minus capital gains and that’s what 4 or 5 million a year profits?
I think they buy teams for stature not some huge profit move

 

[Taluss]

Hopefully a hint about the Sens. I can’t force myself to be hopeful for it though...

 

[Hale The Villain]

Hopefully a hint about the Sens. I can’t force myself to be hopeful for it though...

We don't really do bonuses though. Melnyk only had to pay 3.5M in bonuses for Ryan and Anisimov + 80-100K bonuses for the ELCs.

 

[Stylizer1]

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.

Stone

 

[Stylizer1]

Great, Maguire is stealing Simmers scoups.

 

[albator71]

I have a feeling that the Sens will be playing elsewhere (Quebec City) withing the next 5 years. This franchise needs a new start in a new city, I hope im wrong. I want them to stay in Ottawa.

 

[Senscore]

I have a feeling that the Sens will be playing elsewhere (Quebec City) withing the next 5 years. This franchise needs a new start in a new city, I hope im wrong. I want them to stay in Ottawa.

Why would the team be relocated when they could just not be?

 

[Spartachat]

I have a feeling that the Sens will be playing elsewhere (Quebec City) withing the next 5 years. This franchise needs a new start in a new city, I hope im wrong. I want them to stay in Ottawa.

Nah the Sens just need a new owner.

 

[The Lewler]

We don't really do bonuses though. Melnyk only had to pay 3.5M in bonuses for Ryan and Anisimov + 80-100K bonuses for the ELCs.

This is meant in an irreverent " who the hell knows anymore" kind of way:

-We have an owner in legal proceedings (last I heard) , for hundreds of thousands of dollars from a casino, and for 13k in wages for a pilot.


Soo....... lol ELC bonuses might be crippling.. lol

 

[BankStreetParade]

Hopefully a hint about the Sens. I can’t force myself to be hopeful for it though...

If other teams are for sale why would you want to buy the Senators? Feels like the whole neighborhood is for sale and you're looking at buying the worst one of the bunch.

 

[TheDebater]

If other teams are for sale why would you want to buy the Senators? Feels like the whole neighborhood is for sale and you're looking at buying the worst one of the bunch.

Because it is a Canadian city and a great hockey market. After this draft we might have one of the best prospect pools in the entire league and a few young stars you can build a team around in Tkachuk and Chabot. Why would you not want to buy that?

 

[BonHoonLayneCornell]

If other teams are for sale why would you want to buy the Senators? Feels like the whole neighborhood is for sale and you're looking at buying the worst one of the bunch.

Should be the cheapest then! Bargain bin NHL franchise shopping.

 

[Cacciaguida]

are there any other NHL teams even for sale? moot point

 

[Cacciaguida]

I have a feeling that the Sens will be playing elsewhere (Quebec City) withing the next 5 years. This franchise needs a new start in a new city, I hope im wrong. I want them to stay in Ottawa.

dramatic much?

 

[BankStreetParade]

Because it is a Canadian city and a great hockey market. After this draft we might have one of the best prospect pools in the entire league and a few young stars you can build a team around in Tkachuk and Chabot. Why would you not want to buy that?

It's consistently one of the lowest valued teams in the league. Canadian and great hockey market seem to have little effect on the current and future value of this franchise. People who buy professional sports franchises are making investments that demand ROI.

 

[TheDebater]

It's consistently one of the lowest valued teams in the league. Canadian and great hockey market seem to have little effect on the current and future value of this franchise. People who buy professional sports franchises are making investments that demand ROI.

Based on which sources?

Forbes had them 20th in 2017, 23rd in 2018 and 26th in 2019...

Not great obviously but all things considered the team is still somehow worth more than 5 other teams in the league. The team on the ice has been trash, the arena has not been selling tickets and ownership is bleak, of course the value is dropping and that is a good thing if we hope to see a new owner.

Back in 2008 when the team was coming off a successful 10 year stretch of great hockey and a trip to the SCF, the Senators were ranked 13th in the league in terms of value, putting them in the upper half of the league.

The Business Of Hockey

 

[Samsquanch]

I mean Melnyk is about as immunocompromised as a person can get with his bored organ. It's not like he can even realistically fly to Ottawa and watch games any time in the near future anyways.

I would imagine that selling the team has got to be on the table for him at this point in time.

 

[Gil Gunderson]

Based on which sources?

Forbes had them 20th in 2017, 23rd in 2018 and 26th in 2019...

Not great obviously but all things considered the team is still somehow worth more than 5 other teams in the league. The team on the ice has been trash, the arena has not been selling tickets and ownership is bleak, of course the value is dropping and that is a good thing if we hope to see a new owner.

Back in 2008 when the team was coming off a successful 10 year stretch of great hockey and a trip to the SCF, the Senators were ranked 13th in the league in terms of value, putting them in the upper half of the league.

The Business Of Hockey

Until this year I'm pretty sure Tampa and NYI were valued below the Sens. They both make big acquisitions and are in the ECF right now, while the Sens are in the gutter on and off the ice.

 

[BankStreetParade]

Based on which sources?

Forbes had them 20th in 2017, 23rd in 2018 and 26th in 2019...

Not great obviously but all things considered the team is still somehow worth more than 5 other teams in the league. The team on the ice has been trash, the arena has not been selling tickets and ownership is bleak, of course the value is dropping and that is a good thing if we hope to see a new owner.

Back in 2008 when the team was coming off a successful 10 year stretch of great hockey and a trip to the SCF, the Senators were ranked 13th in the league in terms of value, putting them in the upper half of the league.

The Business Of Hockey

Yes, that would make them...consistently one of the lowest valued teams in the league.

The average NHL team’s value is up nearly $380 million since 2008

This link shows team values from 2008 to 2017 ordered by percent increase, which shows Ottawa 23rd.

Significantly though, Ottawa's biggest value jump happened in 2013 where they went from $220M to $380M. Well guess what also corresponds to that year? The NHL signs a new national TV deal with Rogers and the Senators re-negotiate their regional TV deal.

Any potential owner is going to want to know how they can exit this investment 100%+ ROI in 10 years. I just don't see the path to get there when they'll have to spend close to $750 million for a new downtown arena right off the hop, which will lose value almost immediately. They'll have a re-negotiation of regional/national TV deals to potentially look forward to but they'll have to hit home runs on both.

Not to mention, as many of you say, this team needs to increase its spending to be competitive. They don't need to go to the cap but if you want to upgrade your front office, your C-suite execs, coaching staff and increase player spending slightly you're looking at tacking on another $25-30 million plus on top of your current expenditures.

If the rumours are true that there's multiple teams potentially for sale why would this be the one you go after???

 

[Sens of Anarchy]

What does the value of the franchise have to do with Melnyk not paying his coaches?

 

[GCK]

Yes, that would make them...consistently one of the lowest valued teams in the league.

The average NHL team’s value is up nearly $380 million since 2008

This link shows team values from 2008 to 2017 ordered by percent increase, which shows Ottawa 23rd.

Significantly though, Ottawa's biggest value jump happened in 2013 where they went from $220M to $380M. Well guess what also corresponds to that year? The NHL signs a new national TV deal with Rogers and the Senators re-negotiate their regional TV deal.

Any potential owner is going to want to know how they can exit this investment 100%+ ROI in 10 years. I just don't see the path to get there when they'll have to spend close to $750 million for a new downtown arena right off the hop, which will lose value almost immediately. They'll have a re-negotiation of regional/national TV deals to potentially look forward to but they'll have to hit home runs on both.

Not to mention, as many of you say, this team needs to increase its spending to be competitive. They don't need to go to the cap but if you want to upgrade your front office, your C-suite execs, coaching staff and increase player spending slightly you're looking at tacking on another $25-30 million plus on top of your current expenditures.

If the rumours are true that there's multiple teams potentially for sale why would this be the one you go after???

An arena costs far less than 750M and there really is no need to go downtown for a while. Honestly, with new ownership and an up and coming team then the arena location wouldn’t be as big an issue.

 

[BankStreetParade]

An arena costs far less than 750M and there really is no need to go downtown for a while. Honestly, with new ownership and an up and coming team then the arena location wouldn’t be as big an issue.

They finished the arena in Edmonton 4 years ago and it cost $600 million. What makes you think an arena completing in 2024 won't touch $750 million?