Multiple possibilities for new Senators owners, not all of them in Ottawa
Bruce Garrioch, Ottawa Citizen
Nov 02, 2022 • 6 minutes ago • 4 minute read
Several potential bidders have already thrown their hats into the ring to purchase the Ottawa Senators.
League sources say there will be multiple groups interested in buying the Senators once they’re formally put up for sale by Anna and Olivia Melnyk in the next month or so.
The Melnyk daughters are expected to keep a piece of the team out of respect for their late-father Eugene, who passed away in March after a lengthy illness.
While it will likely be a month before New York-based sports banker Galatioti Sports Partners officially begin speaking to potential Senators’ suitors, a league executive told this newspaper “there will be multiple groups” making a pitch.
NHL commissioner Gary Bettman may already have someone in mind, but the organization has to go through the due-diligence process and make sure there’s somebody who’s willing to put their money where their mouth is once they’ve expressed an interest.
Here are some names this newspaper believes you should keep an eye on in the coming months:
Sources say Jeffrey and Michael Kimel, who used to own a minority piece of the Pittsburgh Penguins before they sold to the Fenway Sports Group last year, have already expressed an interest in purchasing the Senators and being part of the LeBreton Flats project.
The Toronto-based brothers are on the board of the Harlo Financial Group, which invests in real estate, wealth management, and the entertainment industry. Michael Kimel is the head of the Chase Hospitality Group.
Michael Kimel recently founded OverActive Media, which invests in e-sports, and he also served on the management committee of the Penguins.
The Kimel family has the financial wherewithal to make a deal and the knowledge needed to help build LeBreton but they’re hardly alone on that front.
Another person who has been the subject of speculation is Toronto billionaire Michael Andlauer.
The owner of the OHL’s Hamilton Bulldogs also has a 20 per cent share in the Montreal Canadiens, and is said to covet controlling interest in his own NHL team. He’s also highly respected by Bettman and deputy commissioner Bill Daly.
The owner of the Andlauer Group, which owns transport and logistics companies in Canada, he may have kicked the tires on the Ottawa franchise in the past.
Andre Desmarais of Montreal-based Power Corp, who had a link with the other group bidding for LeBreton Flats in 2016, may also dip his toe in the water.
The billionaire is close friends with Bettman and has expressed an interest in buying the Senators before.
Though we’ve heard that groups are interested locally, those with knowledge of the inner workings of the league don’t believe anybody based in Ottawa has the ability to do a deal of this size on their own, which means they’d have to be part of a larger group.
The deal could be worth between $700 million and a billion dollars (U.S.), once completed. The Penguins recently sold for $900 million and the Nashville Predators are on the verge of $775 million sale.
There will be lots of speculation about potential local buyers in the coming months. While Minto’s Roger Greenberg has stated publicly he’d like to be part of a group to buy the team, it will have to be one that has a lot of money behind it.
A league executive told this newspaper Wednesday he believes the next owner of the Senators will either be based in Toronto or in the United States. Bettman wants to keep this team in Ottawa, especially with the potential for a downtown arena on the horizon.
Why is this happening now?
The clock is ticking on a 15-month window to get a lease in place at LeBreton Flats. Even if the Melnyk family wanted to hang onto the ownership of the franchise, they would need a partner to help them finance the new rink located 10 minutes west of downtown.
A new owner could also come from the group of partners that are involved in the LeBreton bid. Those include Sterling Project Development, Populous, Tipping Point Sports and Live Nation.
Making this decision now will ensure the new owner can be involved in the negotiation process with the National Capital Commission before it’s completed. Anthony LeBlanc, the club’s president of business operations, and Erin Crowe, the chief financial officer, continue to handle those talks.
Newly elected Mayor Mark Sutclliffe can expect a call from Crowe and LeBlanc regarding the LeBreton bid, as the city of Ottawa is expected play a role in the development of the rink.
The Senators may look to model the project after the Ice District in Edmonton, where the city and the province of Alberta both provided funding for the arena. The sense is Sutcliffe is at least willing to listen to any proposal.
Stay tuned, the next eight-to-10 months will be interesting.
bgarrioch@postmedia.com
Twitter.com/sungarrioch
https://ottawacitizen.com/sports/hoc...4-f165fcf0ea74
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