GARRIOCH: Report indicates the Ottawa Senators may be putting up a 'For Sale' sign soon
Bruce Garrioch, Post Media
Nov 01, 2022
Are the Ottawa Senators about to put up a ‘For Sale’ sign at the Canadian Tire Centre?
According to a report, the franchise may be headed in that direction.
In an article released Tuesday morning on the value of all 32 NHL teams, Los Angeles-based Sportico reported the Senators’ board of directors have “already interviewed self-side bankers” and “there is significant interest in the franchise”.
“The Ottawa Senators are widely expected to be the next team to sell,” the article stated.
A spokesperson for the Senators said the organization has no comment on the report.
For those who don’t know, “self-side bankers” are advisors to the board of directors running the team on behalf of the Melnyk family. Those bankers would act as intermediaries to solicit bids which means they essentially act as a real estate agent for the team.
This is the first time since the passing of Senators’ owner Eugene Melnyk there has been any talk publicly the team may 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.
The report valued the franchise at $655 million (all figures U.S.), a rise of 21% from last year, but league sources told this newspaper that figure isn’t even close to what the franchise will be worth if the Melnyk family does decide to sell a portion or all of its stake in the team.
The Nashville Predators are about to sell for $775 million and the Seattle Kraken paid $650 in an expansion fee to get into the league. That means the value of an established Ottawa franchise will be much higher than the $655 million label that Sportico put on it.
In June, the Senators won preferred bidder status from the National Capital Commission to build a new rink at LeBreton Flats. The organization signed a memorandum of understanding with the NCC at the time and now has until next September to get a lease in place for the land.
That work to finalize the rink bid is continuing daily behind scenes
Last month, representatives of the partners in the LeBreton project were in town to meet with Anthony LeBlanc, the club’s president of business operations, chief financial officer Erin Crowe and NCC officials. Former Senators’ defenceman Chris Phillips, the club’s VP of business operations, has also played a role in the bid at LeBreton.
The partnership includes Sterling Project Development, Populous, Tipping Point Sports and Live Nation. All are well-funded and have experience in building rinks. NCC chief executive officer Tobi Nussbaum noted the depth of the club’s partnership group gave the Senators the edge.
If the lease is in place then you have to think this team will sell for closer to the $900 million to $1 billion range if the Melnyk family determines it wants to go that route. If they want to hold onto the team, they will need a partner to help them build the rink.
It’s possible one of those partners in the LeBreton bid may be among the interested parties if the Senators do go up for sale.
Of course, this is going to set off speculation of who’s interested but it’s not even known if the Melnyk family has made any firm decision.
Local businessman Roger Greenberg told CTV Ottawa in the weeks after Melnyk’s death 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.
There’s been talk in local business circles Farmboy 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.
We’ve heard these local names before but it wouldn’t surprise anybody if the team is sold it will be to people based in Toronto or the United States.
Still, this is all speculation because we don’t even know if the franchise is up for sale.
Anna and Olivia Melnyk have been doing their due-diligence before determining what’s next.
The Melnyks are taking advice from mother, Laura, the club’s financial advisors along with independent council to determine next steps. Their father didn’t just own the Senators, there’s several other businesses, including a line of beauty care products, a concussion recovery company and real estate.
NHL commissioner Gary Bettman and the league have been respectful of the fact Anna and Olivia are grieving the loss of their father. The NHL wants them to have as much time as they need to determine what’s next and the annual Melnyk Skate for Kids will return during the holiday season.
The 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 John Miszuk, the Senators’ chief administrative officer, have been directing the team since Melnyk passed away.
Plener and Ziefman had been with Melnyk for several years. The league office keeps in touch with Plener on a regular basis because he’s the executor of Melnyk’s estate.
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