Trinity countersuing Melnyk for 1 Billion

[Tuna99]

Melnyck is a plague to the city of Ottawa.

 

[Take a Bath Son]

Some LeBreton tidbits in Elliotte Friedman's column today:

-Melnyk anticipated Devcore's statement about the NCC now being obliged to negotatiate with them; has already threatened legal action if the entire bidding process isn't restarted (shocking I know).
-Once the embargo ends on January 24, we will find out officially that the downtown arena was going to be owned by the city of Ottawa, with Melnyk responsible for 100 percent of the operating costs and would be obliged to repay the Senators share of debt financing (50 percent) over a 25-35 year period.

Sigh... The whole "holding the city hostage" statement by devcore is really starting to resonate.

 

[Gil Gunderson]

What a parasite.

 

[umma gumma]

He's a large inflamed whitehead on this city's face that everyone wants to pop.

 

[AchtzehnBaby]

Some LeBreton tidbits in Elliotte Friedman's column today:

-The NHL doesn't consider the current lawsuit mess to be a "dire situation" and has options it is choosing to keep to itself
- The federal government does not want the LeBreton issue to be a distraction during the upcoming election campaign. Expect this to push things back by at least a year.
-Melnyk anticipated Devcore's statement about the NCC now being obliged to negotatiate with them; has already threatened legal action if the entire bidding process isn't restarted (shocking I know).
-Once the embargo ends on January 24, we will find out officially that the downtown arena was going to be owned by the city of Ottawa, with Melnyk responsible for 100 percent of the operating costs and would be obliged to repay the Senators share of debt financing (50 percent) over a 25-35 year period.

Here's the actual article...

28. Twenty years ago, I covered Toronto City Council when the NBA Raptors negotiated to buy Canada Post’s Toronto Delivery Building and turn it into what is now Scotiabank Arena. That was some seriously boring work, and I hoped never to do anything like that again. Now comes more multi-government excitement, Ottawa.

Here’s what we do know: the partnership between John Ruddy and Eugene Melnyk expires Jan. 24. What happens then is anyone’s guess. At some point last fall, Commissioner Bettman reminded the city of the importance of a downtown arena, and the message is understood. The key thing is that the NHL itself doesn’t consider this a dire situation, which means it has options it is choosing to keep to itself. At the October Board of Governors meeting, it was mentioned that a “below-market” offer to buy the team from Melnyk had been rejected. That’s $400 million at most, although some have suggested it was lower.

29. It’s been reported Ottawa Mayor Jim Watson didn’t want this coming up during the municipal election, and it was explained to me that it is expected the federal government will follow the same script with an election due by late-October. That’s going to push things back at least a year.

Some Senators fans brought up Devcore’s announcement saying LeBreton’s federal governing body is “legally obliged” to negotiate with it now that the original winning partnership is over. This is really out of my expertise, but I looked into it anyway. According to a couple of sources, Melnyk has felt for some time this would happen. At one point, he sent a lawyer’s letter to the governing body, indicating that is not the legal mandate and he would take action if it occurred. As far as he’s concerned, the whole process needs to start from the beginning. I don’t know if he’s right or he’s wrong.

30. All of the paperwork is embargoed until the official termination of the agreement. But, when it becomes available, we’re going to find out the downtown arena was going to be owned by the city — through some sort of governing body. The Senators were going to be responsible for 100 per cent of the operating and lifecycle costs during a 25-35 year lease, and would repay their share of the debt financing (50 per cent) over that time.

It sounds like they were going to get a lot of the revenues, but, without seeing the full fine print, it’s hard to say how fair/unfair the deal was for the city, Melnyk or Ruddy. As far as the NHL is concerned, who owns the building isn’t important. Who operates and gets revenues is. Confused? Me too. My father was a builder, and I thought his work was boring, too.

 

[Tnuoc Alucard]

Once the embargo ends on January 24, we will find out officially that the downtown arena was going to be owned by the city of Ottawa, with Melnyk responsible for 100 percent of the operating costs and would be obliged to repay the Senators share of debt financing (50 percent) over a 25-35 year period.

Putting to rest the unfounded speculative assumption he wanted a "free Arena" just built, at no cost to him and handed over to him.

 

[topshelf15]

We are told EM is a billionaire....But wont sell the team that loses money every season according to him ,and doesnt want to build or own anything now in Lebreton....Seems about right

 

[supsens]

What a parasite.

So he should pay for and fund a rink he doesnt own, hand over millions in revenue every year to Ruddy so Ruddy can pay for infrastructure and land for more buildings and more profits for himself as he looks for other investors like Melnyk?

Yep one of them is definitely a parasite.

 

[Gil Gunderson]

So he should pay for and fund a rink he doesnt own, hand over millions in revenue every year to Ruddy so Ruddy can pay for infrastructure and land for more buildings and more profits for himself as he looks for other investors like Melnyk?

Yep one of them is definitely a parasite.

Who is asking for him to pay for a building he won't own and hand over all his revenue?

 

[topshelf15]

Who is asking for him to pay for a building he won't own and hand over all his revenue?

Personally I thought investing into a downtown arena and development project,is what billionaires do.....EM has proven me wrong on that one lol

 

[supsens]

Who is asking for him to pay for a building he won't own and hand over all his revenue?

Did I say all his revenue? Ruddy has included Melnyk wanting naming rights as a problem with his lawsuit, he was also talking about the different sponsorship he had lined up to help him turn a profit and pay for the project on youtube.
Above it says the city would own the rink with Melnyk paying back half the cost, the city then wants to impose a ticket surcharge to get there money back.

As I have stated Ruddy and the city are trying to milk of the NHL's teet and bleed the sens for every drop they can

 

[topshelf15]

Did I say all his revenue? Ruddy has included Melnyk wanting naming rights as a problem with his lawsuit, he was also talking about the different sponsorship he had lined up to help him turn a profit and pay for the project on youtube.
Above it says the city would own the rink with Melnyk paying back half the cost, the city then wants to impose a ticket surcharge to get there money back.

As I have stated Ruddy and the city are trying to milk of the NHL's teet and bleed the sens for every drop they can

So like EM then??

 

[supsens]

So like EM then??

Ya funny thing, it's his team not theirs.

 

[topshelf15]

Ya funny thing, it's his team not theirs.

Yep its all his empty building and all

 

[topshelf15]

EM doesnt have the money to even build an arena ,so he is leveraging the long term financial health of the team..With the profit from the development, to gain a free one ...Seems about par for him

 

[Joeyjoejoe]

Ya funny thing, it's his team not theirs.

ya funny thing, his financial losses not theirs.

 

[supsens]

Yep its all his empty building and all

No your right a Random developer and the city should turn the sens into an even poorer team with less revenue and more expensive tickets so Ruddy can make untold millions.
Cool logic bro, on what planet does that sound reasonable? And how is it good for the sens or the fans?
Put your hate aside forget who owns the team and think. Ticket prices go up(extra money does not go to the team), operating costs increase and advertising revenue goes down. Sound good?

 

[harrisb]

EM doesnt have the money to even build an arena ,so he is leveraging the long term financial health of the team..With the profit from the development, to gain a free one ...Seems about par for him

I'm pretty sure the long term financial health of the team is on life support, sounds like there is a structural debt. I also think his lenders said "no more" when he came to them with his financial plan for Lebreton and he has no other assets with enough value to leverage.

 

[supsens]

EM doesnt have the money to even build an arena ,so he is leveraging the long term financial health of the team..With the profit from the development, to gain a free one ...Seems about par for him

You mean Ruddy has no money so hes trying to use the sens to get it started so he can find investors to build the entire project.

 

[topshelf15]

You mean Ruddy has no money so hes trying to use the sens to get it started so he can find investors to build the entire project.

Funny ,I though him already building on Albert ,is what the lawsuit was all about...Maybe EM should just rid himself of the money pit that the Sens are for him and be done with it

 

[Tuna99]

Putting to rest the unfounded speculative assumption he wanted a "free Arena" just built, at no cost to him and handed over to him.

Also keeping up the opinion that Melnyck is a complete moron and a plague to the city. The city was going to build him an arena and he still screwed it up, massively.

And I don’t believe Ottawa was going to build the arena

 

[Tuna99]

No your right a Random developer and the city should turn the sens into an even poorer team with less revenue and more expensive tickets so Ruddy can make untold millions.
Cool logic bro, on what planet does that sound reasonable? And how is it good for the sens or the fans?
Put your hate aside forget who owns the team and think. Ticket prices go up(extra money does not go to the team), operating costs increase and advertising revenue goes down. Sound good?

How is anything this team done in the last 2 years good for the Sens or the fans?

 

[supsens]

Funny ,I though him already building on Albert ,is what the lawsuit was all about...Maybe EM should just rid himself of the money pit that the Sens are for him and be done with it

Actually him drumming up investors and new partnerships to buy in and make 900 huge was the problem.

 

[supsens]

How is anything this team done in the last 2 years good for the Sens or the fans?

That is not the issue at hand or the discussion about this deal.

 

[topshelf15]

Actually him drumming up investors and new partnerships to buy in and make 900 huge was the problem.

I know nothing about high end investing,but knowing what your partner is worth when embarking on a billion dollar enterprise...Would seem prudent