Speculation: Sens, Lebreton, and the NCC

[Nac Mac Feegle]

He means that a partnership agreement would govern the business relationship. This isn’t a publicly traded company - you’d have to think of it more like a JV. Control would be determined by the terms of the contract. Very likely that the minority partner would have consent rights to all business decisions even if the majority partner (Melnyk) retained a larger share of the venture’s profits.

This all assumes that Melnyk would be willing to give such a consent right away, of course.

That's the sticker. With how we've seen Eugene act over the last decade, does anyone really believe that guy would give up any amount of control?

 

[Mingus Dew]

That's the sticker. With how we've seen Eugene act over the last decade, does anyone really believe that guy would give up any amount of control?

Well I mean it’s a negotiation. JV agreements are fairly complex documents and usually take months to definitively draft.

It’s very possible that whomever will be the “minority” or non-managing partner will demand a say in business operations. It’s also possible that they just want a share of the profits moving forward and would prefer not to get involved in running the business. I’m no insider so I’m just speculating here.

But it’s definitely the case that this relationship would be documented. It wouldn’t be as simple as “well this guy owns 51% so everything he says goes”.

 

[Tnuoc Alucard]

It's kind of hard to find any detailed information on the RLG, and how it's structured.
Does it have a board of governors?
I assume Melnyk is the Chairman of the board, but how many seats are on the board ....... and if someone else was brought in, how seats would they get on the board?

https://www.cbc.ca/news/canada/ottawa/rendezvous-devcore-lebreton-choice-analysis-1.3558270

 

[Sensung]

It's kind of hard to find any detailed information on the RLG, and how it's structured.
Does it have a board of governors?
I assume Melnyk is the Chairman of the board, but how many seats are on the board ....... and if someone else was brought in, how seats would they get on the board?

LeBreton Flats: Why the Sens bid came out on top | CBC News

Why would you assume Melnyk is the chairman?

 

[BonkTastic]

It's kind of hard to find any detailed information on the RLG, and how it's structured.
Does it have a board of governors?
I assume Melnyk is the Chairman of the board, but how many seats are on the board ....... and if someone else was brought in, how seats would they get on the board?

LeBreton Flats: Why the Sens bid came out on top | CBC News

John Ruddy is leading RVL, as he should be, since at it's heart this is a real-estate development project and he's the one with decades of high-stakes development and real-estate experience, while Melnyk is a Pharma guy at heart. Ruddy is also fronting more capital than Melnyk, and has more of a stake in the project as a whole (including assuming more risk, financially).

Melnyk is the #2 guy.

 

[Yak]

EM really needs to get out of Senators and pass this team to a buyer who can afford to run this organization properly and not like a cash strapped business on the verge of bankruptcy.

He does not have funds to build a proper stadium downtown or to sign his good players to proper contracts. He is over his head and in denial if he thinks he can carry on like this.

The signs hopefully point to him selling majority stake in this team cause no one is going to come in as silent partner with EM ruining the franchise with his poor decision making skills.

EM gets a small portion of the team if he wants but for most part put out to pasture and barred from any decision making in the organization.Anything less then that would be band-aid situation and potential investors I am sure see that.

No investor in his right mind would sign a check over EM to keep screwing this franchise up. He has star players that need signing and arena that needs to get built and fanbase erroding each day that he owns the team. EM see's this also that his asset is probably worth as much as he can get for it. If he signs contacts for the star players and builds a stadium it will all be financed and considered debt that he owns on the team and probably won't get as good return on the investment cause of that debt.

Time to sell EM! Writing is on the wall.

 

[Sens of Anarchy]

John Ruddy is leading RVL, as he should be, since at it's heart this is a real-estate development project and he's the one with decades of high-stakes development and real-estate experience, while Melnyk is a Pharma guy at heart. Ruddy is also fronting more capital than Melnyk, and has more of a stake in the project as a whole (including assuming more risk, financially).

Melnyk is the #2 guy.

But still #1 in our hearts

 

[BonkTastic]

EM really needs to get out of Senators and pass this team to a buyer who can afford to run this organization properly and not like a cash strapped business on the verge of bankruptcy.

He does not have funds to build a proper stadium downtown or to sign his good players to proper contracts. He is over his head and in denial if he thinks he can carry on like this.

The signs hopefully point to him selling majority stake in this team cause no one is going to come in as silent partner with EM ruining the franchise with his poor decision making skills.

EM gets a small portion of the team if he wants but for most part put out to pasture and barred from any decision making in the organization.Anything less then that would be band-aid situation and potential investors I am sure see that.

No investor in his right mind would sign a check over EM to keep screwing this franchise up. He has star players that need signing and arena that needs to get built and fanbase erroding each day that he owns the team. EM see's this also that his asset is probably worth as much as he can get for it. If he signs contacts for the star players and builds a stadium it will all be financed and considered debt that he owns on the team and probably won't get as good return on the investment cause of that debt.

Time to sell EM! Writing is on the wall.

IMO, the most likely scenario doesn't involve Melnyk selling his full ownership of the team.

The most likely scenario is he sellsjut enough of a majority share of the team (something like 51% of ownership) to someone with the capital and determination to fund the team at an appropriate level that they can realistically have a financial hope of competing, while Melnyk maintains enough ownership of the team that he can still sate his enormous ego by being a public face of a pro hockey team without the nasty business of having to find money to pay for it.

 

[Tnuoc Alucard]

Why would you assume Melnyk is the chairman?

Well, as I pointed out, I tried to find out just who comprises the RLG, and there's not much detail out there.

I assume he's the Chairman/Spokesman/President or whatever, as the Media refers to the "Melnyk lead RLG" in their reports.

Any information you have would be welcomed.

 

[Tnuoc Alucard]

John Ruddy is leading RVL, as he should be, since at it's heart this is a real-estate development project and he's the one with decades of high-stakes development and real-estate experience, while Melnyk is a Pharma guy at heart. Ruddy is also fronting more capital than Melnyk, and has more of a stake in the project as a whole (including assuming more risk, financially).

Melnyk is the #2 guy.

To be honest, I don't ever think I've seen the media interview (broadcast) John Ruddy, it seems they always interview Melnyk for some reason.

In this article they refer to the two of them as "partners" ... so perhaps you're correct.

"the RendesVouz group — a partnership between Senators’ owner Eugene Melnyk and John Ruddy of Trinity Developments"

Garrioch: NCC and RendezVous LeBreton have reached agreement in principle for Flats development

 

[Mingus Dew]

To be honest, I don't ever think I've seen the media interview (broadcast) John Ruddy, it seems they always interview Melnyk for some reason.

In this article they refer to the two of them as "partners" ... so perhaps you're correct.

"the RendesVouz group — a partnership between Senators’ owner Eugene Melnyk and John Ruddy of Trinity Developments"

Garrioch: NCC and RendezVous LeBreton have reached agreement in principle for Flats development

RLG is a JV between Senators Sports and Entertainment and Trinity. I don’t know its corporate structure but something to look into I suppose. Likely an LLC or LP governed by its members/partners (of which there are two - unclear who would have a controlling interest as we don’t have the authority docs).

 

[Tnuoc Alucard]

RLG is a JV between Senators Sports and Entertainment and Trinity. I don’t know its corporate structure but something to look into I suppose. Likely an LLC or LP governed by its members/partners (of which there are two - unclear who would have a controlling interest as we don’t have the authority docs).

With the strong rumour @mysens mentioned, I wonder if the person who is buying into the Senators, is also going to be buying into the RLG.

It could be just the Franchise, and Melnyk reduces his role, and focuses on the Lebreton Deal, or heaven forbid, vice versa

It could be both, and Melnyk has diminished roles on both fronts.

Like I mentioned earlier, I've found very little about how the RLG is structured, and what other parties might be involved beyond Melnyk and Ruddy.

Thanks for the input.

 

[Tnuoc Alucard]

Sitting beside EM is Graham Bird of GBA, who seems also to be involved with the RLG.


'A privilege to be part of it': RendezVous LeBreton project lead says his job is a special honour | CBC News

Front Page Media Group » DCDLS vs RendezVous Lebreton Over NCC Lands And NHL Team

 

[Mingus Dew]

With the strong rumour @mysens mentioned, I wonder if the person who is buying into the Senators, is also going to be buying into the RLG.

It could be just the Franchise, and Melnyk reduces his role, and focuses on the Lebreton Deal, or heaven forbid, vice versa

It could be both, and Melnyk has diminished roles on both fronts.

Like I mentioned earlier, I've found very little about how the RLG is structured, and what other parties might be involved beyond Melnyk and Ruddy.

Thanks for the input.

If they are buying into SSE then they would indirectly be buying into RLG as well (unless the partnership interest in RLG was expressly carved out). I imagine that anyone interested in buying in is doing so with the Lebreton development in mind.

 

[BonkTastic]

I came across some very interesting news yesterday morning that involves ownership of the Senators. There is a prominent Ottawa family that has been disposing and liquidating about 35% of their assets in order to possibly make a significant pitch to purchase part of the Ottawa Senators or become partners with EM. I am not sure if it is a controlling interest. But, knowing the family, this could be the case. I cannot name names, as I know the family, nor can I suggest any numbers or price or timeline. This information was a sort of a common knowledge between my circle of friends/associates, as a matter of fact, my good friend who is a major player in Condo development in Ottawa thought I had already heard this and was surprised I didn't. But again, no names as if the deal is sabotaged because of leaked information, I along with anyone involved could be subject to millions of dollars in regards to a lawsuit. Take it for what it is, but this is a pretty reliable source on my end. We tend to hear things on the street within our circle of developers, real estate managements companies and commercial financing/CMHC executives. I shared this news with Coladin as well as he is part of this circle. Things could be turning around for this franchise.

Damn, I just read this now (been taking lengthy breaks from HFSENS over the summer).

Sounds exciting, if true!