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

[thinkwild]

I remember hearing, when the Lightning were sold a decade or so ago, that financing was so hard to come by that the old Tampa owner had to lend the money to the new buyer cause they were having a tough time getting financing. Now that was probably largely due to the liquidity crisis in 2008 i guess, but i wonder in these times how easy it is to get the financing for these big deals.

But it sounds like there may be a few new members in the NHL owners club. Hopefully their due diligence brings forth better candidates than the Melnyk's of the world. We'll find out now how many people really are interested in buying these teams.

 

[TheDebater]

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

If Melnyk cannot afford to pay his employees therefore it can be interpreted that he is weak financially and he might not be a viable owner anymore. If he is not a viable owner, he should sell, and he if he should sell, then for how much and who would buy?

Which brings us about to how we started discussing value.

 

[Micklebot]

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.

Lol 750 mil? It just keeps getting bigger and bigger like a fishing story...

The most recent arenas built were the edm arena at 485 mil, the whole project added up to 613 canadian. Calgary's proposal is estimated at 550 canadian and Vegas' arena was 492 CAD.

But we'll get the luxe model and go with 750...

 

[BankStreetParade]

Lol 750 mil? It just keeps getting bigger and bigger like a fishing story...

The most recent arenas built were the edm arena at 485 mil, the whole project added up to 613 canadian. Calgary's proposal is estimated at 550 canadian and Vegas' arena was 492 CAD.

But we'll get the luxe model and go with 750...

The Edmonton arena was projected at $450 million and ended up costing just over $600 million. The Barclay in Brooklyn cost over $1 billion.

Projects that broke ground roughly 8 years ago. If everything was put in motion today, the future Lebreton arena wouldn't break ground until 2022 at the earliest and probably wouldn't be completed before 2024/2025.

All of this is besides the point of a prospective owner looking at shelling out $500 million for the team and then having to come up with another $500 million in financing for a new arena (estimate used just to appease you guys).

 

[AchtzehnBaby]

The Edmonton arena was projected at $450 million and ended up costing just over $600 million. The Barclay in Brooklyn cost over $1 billion.

Projects that broke ground roughly 8 years ago. If everything was put in motion today, the future Lebreton arena wouldn't break ground until 2022 at the earliest and probably wouldn't be completed before 2024/2025.

All of this is besides the point of a prospective owner looking at shelling out $500 million for the team and then having to come up with another $500 million in financing for a new arena (estimate used just to appease you guys).

I would have to agree with you on the price range.

We all know that when it has public money involved, the project overruns are high. Unless someone comes in and puts together a LSTK price (like PCL or Aecon) it doesn’t happen for under $650M. The risk is high. Unions love big projects. They love the overtime.

Doing this privately is the best option, though financially it’s hardly viable.

 

[snipes]

Insert 0 days since last incident gif

 

[Micklebot]

The Edmonton arena was projected at $450 million and ended up costing just over $600 million. The Barclay in Brooklyn cost over $1 billion.

Projects that broke ground roughly 8 years ago. If everything was put in motion today, the future Lebreton arena wouldn't break ground until 2022 at the earliest and probably wouldn't be completed before 2024/2025.

All of this is besides the point of a prospective owner looking at shelling out $500 million for the team and then having to come up with another $500 million in financing for a new arena (estimate used just to appease you guys).

Edm broke ground 6 years ago not 8, same with tmobile in Vegas. Edm total project came to 614 mil according to press releases on the day it open and current city documents, that 614 included the arena which itself was 480. The increase for the entire project was 7 mil more than originally forcast.

 

[BankStreetParade]

Edm broke ground 6 years ago not 8, same with tmobile in Vegas. Edm total project came to 614 mil according to press releases on the day it open, that 614 included the arena. The increase from original estimates for the entire project was 7 mil more than originally forcast.

The original proposal was $450 million with a final cost of $613 million. Why are you arguing this? It's publicly available information.

Cost overruns on mega-projects like these are almost standard, not the exception.

The arena in Detroit had a cost estimate of $650 million and ended up costing $862 million.

Calgary's current estimate is $550 million and I guarantee that they will be closer to $700 million by the time it's all said and done.

 

[HoweHullOrr]

No this is good. Very good.

Hopefully Melnyk is forced to sell.

Normally I'd agree but I'm not so sure the market is hot for buying sports teams when we'll need to wait a year at bare minimum before crowds can come back.

Alot of uncertainty and as awful as Melnyk's financial position is... I'm just not sure a sale now could happen or would result in better ownership.

Has there been any recent news about Melnyk & team ownership? Given his casino debt that he hasn't managed to pay off, you have to wonder about E.M.'s financial health. Any news?

 

[Micklebot]

The original proposal was $450 million with a final cost of $613 million. Why are you arguing this? It's publicly available information.

Cost overruns on mega-projects like these are almost standard, not the exception.

The arena in Detroit had a cost estimate of $650 million and ended up costing $862 million.

Calgary's current estimate is $550 million and I guarantee that they will be closer to $700 million by the time it's all said and done.

I am arguing it specifically because it is public info and on the cities website. 450 was the arena only, the 614 includes costs of all the other stuff including a seperate communty arena, an lrt connection, and the winter garden. The cost of the arena is on record, you can go look it up, it was 483 and the whole priject went from 606 to 614. The cost didn't spiral out of control, it was pretty close to the original estimate of 450. You are conflating the arena cost and the cost of the project as a whole. If the city isn't involved in the project, you probably dont see a winter garden and community rink.

As for the detroit arena, the original plan was more bare bones the the illitch famimily decided to improve it and make it state of the art. Costs increased because they added premium additions including more visual displays, an outdoor plaza and gondola seating that weren't there originally. Again, this is all public domain info,

 

[thinkwild]

Has there been any recent news about Melnyk & team ownership? Given his casino debt that he hasn't managed to pay off, you have to wonder about E.M.'s financial health. Any news?

We'd need some intrepid reporters. They seem hard to come by. Lotsa loose threads dangling out there

 

[HoweHullOrr]

We'd need some intrepid reporters. They seem hard to come by. Lotsa loose threads dangling out there

Ya, not easy it seems to get info on this subject. Given that team owners might have to reach into their pockets to make up for shortfalls, I wondered if that meant Melnyk might be forced to sell?

 

[The Lewler]

I am arguing it specifically because it is public info and on the cities website. 450 was the arena only, the 614 includes costs of all the other stuff including a seperate communty arena, an lrt connection, and the winter garden. The cost of the arena is on record, you can go look it up, it was 483 and the whole priject went from 606 to 614. The cost didn't spiral out of control, it was pretty close to the original estimate of 450. You are conflating the arena cost and the cost of the project as a whole. If the city isn't involved in the project, you probably dont see a winter garden and community rink.

As for the detroit arena, the original plan was more bare bones the the illitch famimily decided to improve it and make it state of the art. Costs increased because they added premium additions including more visual displays, an outdoor plaza and gondola seating that weren't there originally. Again, this is all public domain info,

This is apropos of nothing , but I really like the Little Caesars Arena complex . Only went to see a game there once in the before times (2019) and was like damn I would love something like in Ottawa.

 

[Nac Mac Feegle]

You know, the way things are trending regarding entertainment and all that...this might be getting close to the time where a 14-15k arena becomes viable. More luxury seating and options, and better conversion for other events (built for good acoustics for concerts and shows), and some technology additions (and made modular so you can upgrade easily over the years)...and you have a venue that would be good for 50 years.

Might be a better fit for the Flats than the original proposals. Being a bit smaller opens up a little more space for whatever the NCC has in their "vision."

 

[Daffy]

I can't shake this feeling that we are going to lose our team. Help.. lol

 

[Mark Stones Spleen]

There's 17 teams who have cut pay for all front office staff and are starting to make decisions about layoffs. Why is this any different? Given the circumstances, why should any inactive coaches get full salary right now?

Buddy, we barely had any staff to begin with. There's like 9 people working for the sens right now, he shouldn't need NHL help to pay them.

 

[AchtzehnBaby]

Buddy, we barely had any staff to begin with. There's like 9 people working for the sens right now, he shouldn't need NHL help to pay them.

To be clear, NHL is not paying them. It wasn’t a case of Euge not having money in the bank.

It is a case of an owner being super cheap and insensitive. He didn’t feel the need to pay more than 50% of the salaries.

The way I read it, the NHL mediated and asked Euge to pay them retroactively.

The worst thing now his that we will start losing coaching staff to other organizations.

Ridiculous.

PS - I am sure the Penguin coaches will be doing the same soon, after this. 25% for twice as long...

At least 17 NHL teams have reportedly cut hockey operations staff members' pay amid the COVID-19 pandemic. However, the Senators' 50% reduction is the largest in the league, and it's twice the size of the next-closest team that initiated a similar all-staff salary decrease (the Pittsburgh Penguins, although their 25% hit will extend through Nov. 30).

 

[Dingle]

Buddy, we barely had any staff to begin with. There's like 9 people working for the sens right now, he shouldn't need NHL help to pay them.

primitive math: Sens made ~ 125 million in 18/19..paid ~ 60 million in real salaries. Supposedly declared 10 million in losses. That suggests an operation cost of ~ 70-75 million. Or about 6 million a month.

Near zero revenue the last 6 months..suggest about 36 million...granted, no operating..so what part of the 36 million is salaries..traditionally, 1/3 salaries, 1/3 overhead, 1/3 cost of product for "normal businesses". We leave those fractions alone. So 1/3 is salaries.

making 12 million in salaries....let us say layoffs, cuts, etc...so 6-7 million...so in 6 months, 6-7 million in salaries..they have a further 4 months before any revenue kicks in..so a further 3-4 million.

by the end of this..about 10 million in salary commitment...that is serious coin... How he is holding on, or any of the struggling franchises are, is beyond me?

 

[Micklebot]

To be clear, NHL is not paying them. It wasn’t a case of Euge not having money in the bank.

It is a case of an owner being super cheap and insensitive. He didn’t feel the need to pay more than 50% of the salaries.

The way I read it, the NHL mediated and asked Euge to pay them retroactively.

The worst thing now his that we will start losing coaching staff to other organizations.

Ridiculous.

PS - I am sure the Penguin coach’s will be doing the same soon, after this. 25% for twice as long...

We just lost the goalie coach in Belleville to the frontenacs.

Teams have had to shut things down in the past for CBA disputes but they new it was coming and had a war chest built up. The lucky part of the timing here is that we are close to the end of the current CBA so they like again had that war chest, but unlike a lockout, they can't supplement their revenues by increasing non hockey events at the arenas.

I wonder if the pandemic will deplete the labour dispute war chests and give either the players or owners additional leverage for 2022.

 

[Sun God Nika]

Devcore could still buy the team and include them
In their bid for lebreton flats!

 

[Masked]

I can't shake this feeling that we are going to lose our team. Help.. lol

This isn't the best place to look for a medical professional. Try Ontario Health.

 

[AchtzehnBaby]

primitive math: Sens made ~ 125 million in 18/19..paid ~ 60 million in real salaries. Supposedly declared 10 million in losses. That suggests an operation cost of ~ 70-75 million. Or about 6 million a month.

Near zero revenue the last 6 months..suggest about 36 million...granted, no operating..so what part of the 36 million is salaries..traditionally, 1/3 salaries, 1/3 overhead, 1/3 cost of product for "normal businesses". We leave those fractions alone. So 1/3 is salaries.

making 12 million in salaries....let us say layoffs, cuts, etc...so 6-7 million...so in 6 months, 6-7 million in salaries..they have a further 4 months before any revenue kicks in..so a further 3-4 million.

by the end of this..about 10 million in salary commitment...that is serious coin... How he is holding on, or any of the struggling franchises are, is beyond me?

Good thing each owner got their $26M expansion fees from Seattle this year.

 

[GCK]

To be clear, NHL is not paying them. It wasn’t a case of Euge not having money in the bank.

It is a case of an owner being super cheap and insensitive. He didn’t feel the need to pay more than 50% of the salaries.

The way I read it, the NHL mediated and asked Euge to pay them retroactively.

The worst thing now his that we will start losing coaching staff to other organizations.

Ridiculous.

PS - I am sure the Penguin coaches will be doing the same soon, after this. 25% for twice as long...

It was DJ that went to the NHL.

 

[GCK]

We just lost the goalie coach in Belleville to the frontenacs.

Teams have had to shut things down in the past for CBA disputes but they new it was coming and had a war chest built up. The lucky part of the timing here is that we are close to the end of the current CBA so they like again had that war chest, but unlike a lockout, they can't supplement their revenues by increasing non hockey events at the arenas.

I wonder if the pandemic will deplete the labour dispute war chests and give either the players or owners additional leverage for 2022.

We have at 6 years of labour peace.

 

[Sens of Anarchy]

It was DJ that went to the NHL.

link?
Good for him though. Standing up for himself and his assistants that he had a hand in bringing in. I'd like to know the steps he took to do that. IE talk to Dorion, and/or Melnyk and the feedback he received.