Speculation: Theory as to why Eugene Melnyk backtracked on LeBreton

[Micklebot]

When people, likeTuna99 says this ↓↓↓↓↓↓




I simply point out the flaw in their logic.

How would you do it?

By offering up nonsense?

Tuna is saying he does't trust Melnyk, that's all. Taking his words literally to the point of if Melnyk said the sky is blue and grass is green he'd believe the opposite isn't pointing out flaws in logic, it's a comprehension issue on your part, not faulty logic on his.

The point has and always will be that Melnyk has proven he will bend the rules and speak half truths, or even outright lie when it suits his purpose, so his word on a subject often carries no weight, particularly when he's saying something that benefits him.

Really?

Who would make an offer on a $900,000 house, if they didn't already know they had the financial ability to take on the required mortgage???

Would you?

I don't know what Daxi would do, but you'd have to be completely out of touch with reality not to realize that there are plenty of people who do exactly that.... it was a big part of what caused the recession; banks lending gobs of money to people who were high risk to buy houses.

 

[Micklebot]

more then?

 

[JD1]

I think Sens nation would love nothing more then Tuna99 vs Melnyck in court over whether he is honest or dishonest.

I’d get more gofundme sponsors then Melnyck has season ticket holders

not so sure this board is very reflective of Sens nation

 

[Jorge Garcia]

I'm just pointing our the absurd and contradictory nature of some of these arguments.

Either Melnyk is a liar or not ........... you can't just pick and choose which statements you like to label as a lie, just to fit the narrative of the day.

Liars don't lie all the time, only when it serves their purposes. If the truth doesn't hurt, let it ring out.

 

[Jorge Garcia]

Spelling police, actually. It's a volunteer position, not a job.

 

[Sens of Anarchy]

more then?

 

[LatteLarrys]

I don't know what Daxi would do, but you'd have to be completely out of touch with reality not to realize that there are plenty of people who do exactly that.... it was a big part of what caused the recession; banks lending gobs of money to people who were high risk to buy houses.

Yeah, and not to mention the plans to finance the franchise early on were partly based on property speculation (commercial development and increasing land value in the surrounding area).

 

[Knave]

Really?

Who would make an offer on a $900,000 house, if they didn't already know they had the financial ability to take on the required mortgage???

Would you?

Your example immediately falls short because the house exists. The 'house' doesn't exist for the NCC bid. LeBreton is empty land.

It's all estimates. Nobody is committing to anything until they need to. There is always the possibility a bank or financier or developer pulls out because they've re-assessed the situation. The NCC works off the best plan or best estimate. Plans don't always work. Estimates are not always correct.

This isn't a shot at Melnyk. This is the reality of huge and complex development deals. Now as a guy with no background in major development like Melnyk... I would be more worried about the deal falling apart than with Devcore. I'm not hoping for that. I want Melnyk to have negotiations done and for building to start but I'm not going to stick my head in the sand and be ignorant.

 

[JD1]

Your example immediately falls short because the house exists. The 'house' doesn't exist for the NCC bid. LeBreton is empty land.

It's all estimates. Nobody is committing to anything until they need to. There is always the possibility a bank or financier or developer pulls out because they've re-assessed the situation. The NCC works off the best plan or best estimate. Plans don't always work. Estimates are not always correct.

This isn't a shot at Melnyk. This is the reality of huge and complex development deals. Now as a guy with no background in major development like Melnyk... I would be more worried about the deal falling apart than with Devcore. I'm not hoping for that. I want Melnyk to have negotiations done and for building to start but I'm not going to stick my head in the sand and be ignorant.

uhmmm....that makes sense up to the point you look at the team. You'v got the group that developed Lansdowne. You've got PCL which is one of the largest construction consortium in Canada and you'v got Tomlinson which I believe is the largest construction consortium in eastern Ontario.

I wasn't in the room evaluating but I think part of the reason that the Melnyk side won is because it is a STRONGER team.

 

[DaveMatthew]

uhmmm....that makes sense up to the point you look at the team. You'v got the group that developed Lansdowne. You've got PCL which is one of the largest construction consortium in Canada and you'v got Tomlinson which I believe is the largest construction consortium in eastern Ontario.

I wasn't in the room evaluating but I think part of the reason that the Melnyk side won is because it is a STRONGER team.

And it wouldn't surprise me if those partners have begun turning on Melnyk. We all know the guy is unethical on top of being a buffoon.

 

[JoeSakic]

Prove it DaveMatthew!

 

[Tnuoc Alucard]

Liars don't lie all the time, only when it serves their purposes. If the truth doesn't hurt, let it ring out.

perhaps you can explain to those who claim the Senators are for sale, but Melnyk is lying when he says they are not.......... and how this serves his purpose?

 

[topshelf15]

EM doesnt have the capital, to fund a massive project like Lebreton...The goverment wants and needs this to happen,and its also broke..So what do you guys think the options are???

 

[Tuna99]

EM doesnt have the capital, to fund a massive project like Lebreton...The goverment wants and needs this to happen,and its also broke..So what do you guys think the options are???

Debt financing like the Quebec City arena which has become a total nightmare, or he sells and find investors with the Capital to fund the Lebreton contract.

 

[topshelf15]

Debt financing like the Quebec City arena which has become a total nightmare, or he sells and find investors with the Capital to fund the Lebreton contract.

He will pressured to sell..The is far to much money at stake here,the NHL ,goverment,and people with far more money than EM has will push him out

 

[Back in Black]

 

[Larionov]

As has been chronicled elsewhere, Eugene is in financial difficulty. The banks will no longer finance his debt, so he is having to find financing in alternative markets. (Remember when the Scotiabank naming deal came to an abrupt end? That was when Scotiabank pulled Eugene's financing, and he wasn't happy.) At this point, he doesn't control who purchases his debt. He also doesn't have the capital to bankroll the construction of the LeBreton project, meaning that he is likely to simply be a tenant in the building there. (That is, if he can hold out long enough as Sens owner, which looks increasingly unlikely.)

Bottom line - the walls are closing in on Eugene, so he is lashing out erratically. Hopefully the nightmare will end soon, and a sale will be announced. My bet is sometime after the season ends...

 

[Nac Mac Feegle]

As has been chronicled elsewhere, Eugene is in financial difficulty. The banks will no longer finance his debt, so he is having to find financing in alternative markets. (Remember when the Scotiabank naming deal came to an abrupt end? That was when Scotiabank pulled Eugene's financing, and he wasn't happy.) At this point, he doesn't control who purchases his debt. He also doesn't have the capital to bankroll the construction of the LeBreton project, meaning that he is likely to simply be a tenant in the building there. (That is, if he can hold out long enough as Sens owner, which looks increasingly unlikely.)

Bottom line - the walls are closing in on Eugene, so he is lashing out erratically. Hopefully the nightmare will end soon, and a sale will be announced. My bet is sometime after the season ends...

Ouch! If that's true, that is bad news for Melynk. A lot of the overall profit (for the regular market teams) these days is the non-NHL events in the arenas. If you don't own the arena, you are cut out of some major high-profit revenue streams.

 

[JD1]

Ouch! If that's true, that is bad news for Melynk. A lot of the overall profit (for the regular market teams) these days is the non-NHL events in the arenas. If you don't own the arena, you are cut out of some major high-profit revenue streams.

ouch is right. but it ain't true.

the value of arena naming rights increased. Melnyk had an out clause. Exercised it. CT paid more. It's a nice story and all just not a lot of truth to it

 

[BloodRedArmy]

ouch is right. but it ain't true.

the value of arena naming rights increased. Melnyk had an out clause. Exercised it. CT paid more. It's a nice story and all just not a lot of truth to it

He exercised the out clause over a squabble with Scotiabank who had cut off his financing. This is well known.

 

[Nac Mac Feegle]

ouch is right. but it ain't true.

the value of arena naming rights increased. Melnyk had an out clause. Exercised it. CT paid more. It's a nice story and all just not a lot of truth to it

That's not what the 'ouch' was about, but nice deflection.

 

[Tuna99]

Melnycks at the point that he’s afraid to get a meal in Ottawa because he’s thinking the chef/waiter/busboy will sabotage his plate.

 

[JD1]

He exercised the out clause over a squabble with Scotiabank who had cut off his financing. This is well known.

no it's not well known. I follow the league very closely and the Senators even closer. The team exercised and out clause and secured a more lucrative deal with CTC. There is a very good article dated 2013 in the Globe that talks about CTC's increasing push into this space, their acquisition of Sport Chek etc.

Maybe that made its way around the Melnyk is an idiot rumour mill but reality is it was a more lucrative deal. Melnyk had a contractual right and exercised it to sign a better deal.

If you had that right and the market shifted... .why would you not exercise it? Come up with a decent answer to that and then maybe we can consider it was because of a financial squabble.

 

[JD1]

That's not what the 'ouch' was about, but nice deflection.

not an intentional deflection.

you were referring to Melnyk being nothing more than a tenant? Ya that would be problematic. Can't see it though. At that point, I think Melnyk would be a seller.

 

[Tuna99]

no it's not well known. I follow the league very closely and the Senators even closer. The team exercised and out clause and secured a more lucrative deal with CTC. There is a very good article dated 2013 in the Globe that talks about CTC's increasing push into this space, their acquisition of Sport Chek etc.

Maybe that made its way around the Melnyk is an idiot rumour mill but reality is it was a more lucrative deal. Melnyk had a contractual right and exercised it to sign a better deal.

If you had that right and the market shifted... .why would you not exercise it? Come up with a decent answer to that and then maybe we can consider it was because of a financial squabble.

You don’t switch partners and move on every deal that can make you richer just because it presents itself. Reputation, Loyalty, reliability are a bigger part of business then profit and Melnyck has shown he has no value to this qualities