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Ottawa Senators are for sale


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https://ottawasun.com/sports/hockey/nhl/ottawa-senators/garrioch-report-indicates-the-ottawa-senators-may-be-putting-up-a-for-sale-sign-soon

 

GARRIOCH: The Ottawa Senators are going up for sale

 

Seven months after the death of its owner, Eugene Melnyk, the Ottawa Senators are for sale

 

As first reported by Los Angeles-based Sportico, the NHL team’s board of directors have “already interviewed sell-side bankers” and “there is significant interest in the franchise.” An article published Tuesday listed the value of the franchise at $655 million U.S.

 

This newspaper has confirmed that Galatioto Sports Partners, a New York-based investment bank, have been retained by the family to sell the franchise, as first reported by Sportico.

 

The expectation is the Senators will remain in Ottawa, league sources say.

 

Though there haven’t been active discussions with potential buyers, those are expected to pick up in the next month when the paperwork is done between Galatioto and representatives of the hockey franchise. 

 

As first reported by Los Angeles-based Sportico, the NHL team’s board of directors have “already interviewed sell-side bankers” and “there is significant interest in the franchise.” An article published Tuesday listed the value of the franchise at $655 million U.S.

 

This newspaper has confirmed that Galatioto Sports Partners, a New York-based investment bank, have been retained by the family to sell the franchise, as first reported by Sportico.

 

Though there haven’t been active discussions with potential buyers, those are expected to pick up in the next month when the paperwork is done between Galatioto and representatives of the hockey franchise.

 

This is the first time since the passing of Senators’ owner Eugene Melnyk there has been any talk publicly the team will be sold. The franchise is part of the massive estate Melnyk left to his daughters, Anna and Olivia, and it has been operating business as usual since his death in March.

 

NHL deputy commissioner Bill Daly told this newspaper in an email he couldn’t comment. Senators representatives weren’t able to comment on the matter either.

 

Melnyk purchased the Ottawa Senators and their arena, then the Corel Centre, in 2003 for $130 million (all figures U.S.). Nearly two decades later, league sources say that the $655 million valuation listed by Sportico isn’t even close to what the franchise will be worth if the Melnyk family does decide to sell a portion or its entire stake in the team.

 

Elsewhere around the league, the expected sale of the Nashville Predators to former Tennessee governor Bill Haslam will reportedly value the franchise at $775 million. The Seattle Kraken, meanwhile, paid $650 million in an expansion fee to get into the NHL.

 

Meanwhile in Ottawa, the Senators won preferred bidder status from the National Capital Commission in June to build a new rink at LeBreton Flats. The organization signed a memorandum of understanding with the NCC and has until next September to get a lease in place for the land.

 

The work to finalize the rink bid is continuing daily behind scenes.

 

Representatives of the partners in the LeBreton project—which includes Sterling Project Development, Populous, Tipping Point Sports and Live Nation—were in town last month to meet with Anthony LeBlanc, the club’s president of business operations, chief financial officer Erin Crowe and NCC officials.

 

News of the Senators sale will surely set off speculation of who’s interested.

 

In the weeks after Melnyk’s death, local businessman Roger Greenberg told CTV Ottawa he was interested in being involved with a group. He’s a partner in the Ottawa Sports and Entertainment Group, which owns the CFL’s Ottawa RedBlacks and the OHL’s Ottawa 67’s.

 

League sources also say Farm Boy executive Jeff York has met with NHL deputy commissioner Bill Daly and has a group in place. He was part of the other bid with Andre Desmarais of Power Corp. at LeBreton Flats in 2016.

 

The team could also be sold to people based in Toronto or the United States, a primary reason why the investment bank was retained.

 

Anna and Olivia Melnyk have been doing their due-diligence before determining what’s next, taking advice from their mother, Laura, the club’s financial advisors along with independent council, sources say.

 

Their father didn’t just own the Senators. There are several other businesses, including a line of beauty care products, a concussion recovery company and real estate.

 

The Senators organization is being run by LeBlanc and Crowe on the business side, while general manager Pierre Dorion is in charge of the club’s hockey operations.

 

The trio report to Sheldon Plener, a partner in the business law group at Cassels, longtime business associate Lawrence Zeifman and Senators’ chief administrative officer John Miszuk, who have been directing the team since Melnyk passed away.

 

The league office keeps in touch with Plener on a regular basis because he’s the executor of Melnyk’s estate.

Edited by Puck_Pun
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58 minutes ago, NHL HHOF said:

Are we getting that downtown Ottawa arena on that Lebreton Flatts land?

 

Maybe! 

 

It depends on how good they are at negotiation. If it does happen the team would be worth more

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1 hour ago, NHL HHOF said:

Are we getting that downtown Ottawa arena on that Lebreton Flatts land?

 

Things are going well in that direction, and it's an absolute must for the franchise to be successful.

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