News Article: Lebreton project

[YouGotAStuGoing]

This one is a "short term" line of credit, as explained in the article.

Most Businesses use this type of financing as it's more economical to pay servicing fees or interest, than using their " liquid cash".

This is spin doctoring even you should be ashamed of. Prudent and financially viable businesses don't put themselves in debt when they already have the money to pay for something.

 

[topshelf15]

This is spin doctoring even you should be ashamed of. Prudent and financially viable businesses don't put themselves in debt when they already have the money to pay for something.

They do if they dont want to use any of theirs,or if they want to show a loss to the CRA

 

[Fandlauer]

I guess it's nice we didn't have to go to Carbone on Preston st.

 

[BatherSeason]

Another official loan announcement...

Senators top up refinancing with new $30M credit facility

Are we the only professional sports franchise that announces banking transactions? This is really really bizarre, no?

 

[Fandlauer]

Are we the only professional sports franchise that announces banking transactions? This is really really bizarre, no?

"The Ottawa Senators are proud to announce an 8 year 30 million dollar deal with the Bank of Montreal." The excitement is palpable.

Someone needs to photoshop a smiling Dorion holding a BMO 30 jersey

 

[BatherSeason]

"The Ottawa Senators are proud to announce an 8 year 30 million dollar deal with the Bank of Montreal." The excitement is palpable.

Someone needs to photoshop a smiling Dorion holding a BMO 30 jersey

The team has announced more bank loans than they have player signings in the past 2 years.

 

[Tnuoc Alucard]

This is spin doctoring even you should be ashamed of. Prudent and financially viable businesses don't put themselves in debt when they already have the money to pay for something.

No, they do this all the time. Did you fiance your house or car, or did you use your "Liquid Cash" to buy it outright?

 

[danielpalfredsson]

 

[YouGotAStuGoing]

No, they do this all the time. Did you fiance your house or car, or did you use your "Liquid Cash" to buy it outright?

I'm not a prudent and financially viable business, but even if I were that's not a reasonable comparison and you know it.

 

[Qward]

If you do not have a solid grasp of business finance, please do not act like you do and spread false information around.

 

[Tnuoc Alucard]

This is spin doctoring even you should be ashamed of. Prudent and financially viable businesses don't put themselves in debt when they already have the money to pay for something.

Prudent and financially viable businesses don't cash in their Liquid cash or liquid assets, when they can secure a line of Credit, which is what this most recent announcement was about. It comes down to determining how EM wants to manage his franchises' finances.

The smart use of financing could accelerate future profits, and keeps Liquid cash or liquid assets, on hand to cover an emergency situation, and earning interest too.

There may be preferential tax reasons for using either Liquid cash or liquid assets, or financing, in certain situations.

If EM is as cheap as most people seem to think he is, then securing this LOC was the choice that saves him the most cash in the long run.

 

[Ray Kinsella]

I'm not a prudent and financially viable business, but even if I were that's not a reasonable comparison and you know it.

But the question is... did you fiancé your house? Heck... we want to know!

 

[Micklebot]

No, they do this all the time. Did you fiance your house or car, or did you use your "Liquid Cash" to buy it outright?

I don't know about Dzingel, but I financed my first car on an open loan and paid it off 2 years into a 5 year loan, then bought my next car (new) outright in cash. My house I financed because I, like most people, didn't have 300+ k available, but I suspect that when my wife and I are empty nesters and ready to downsize, we'd use the cash from the sale of our current house to buy the next house and not finance when there is no need to.

The comparisons to business decisions doesn't hold up mind you, so I'm not sure why you'd bother asking.

All that said, the team getting a line of credit isn't the same as taking out a loan, so I don't have an issue with this at all, at least on the surface. I don't have the required knowledge of the teams cash flows and expenses, nor confirmed info on their assets and liabilities, so I won't comment much on this, however, it is a bit concerning that they announced 130 mil or thereabouts in financing a short time ago, another 30 mil just now, and could potentially have another 100 mil tied up in the leagues line of credit. That potentially puts us at almost 62% of the last valuation of the team. I doubt we've maxed out all our credit options, but that's what to me has the potential to make this scary.

 

[slamigo]

Wasn’t a big balloon payment due at end of October? Did the Sens just finance a debt payment? Oof.

 

[Acidrain66]

Prudent and financially viable businesses don't cash in their Liquid cash or liquid assets, when they can secure a line of Credit, which is what this most recent announcement was about. It comes down to determining how EM wants to manage his franchises' finances.

The smart use of financing could accelerate future profits, and keeps Liquid cash or liquid assets, on hand to cover an emergency situation, and earning interest too.

There may be preferential tax reasons for using either Liquid cash or liquid assets, or financing, in certain situations.

If EM is as cheap as most people seem to think he is, then securing this LOC was the choice that saves him the most cash in the long run.

Aww theres the Count I know, you wouldn't let me down on defending your savior

 

[Nac Mac Feegle]

No, they do this all the time. Did you fiance your house or car, or did you use your "Liquid Cash" to buy it outright?

I bought my last car in cash. If you have the money available, it's the best option for folks who aren't stock market investors (like me).

 

[Qward]

Prudent and financially viable businesses don't cash in their Liquid cash or liquid assets, when they can secure a line of Credit, which is what this most recent announcement was about. It comes down to determining how EM wants to manage his franchises' finances.

The smart use of financing could accelerate future profits, and keeps Liquid cash or liquid assets, on hand to cover an emergency situation, and earning interest too.

There may be preferential tax reasons for using either Liquid cash or liquid assets, or financing, in certain situations.

If EM is as cheap as most people seem to think he is, then securing this LOC was the choice that saves him the most cash in the long run.

Please refer to my prior post.

 

[mysens]

Typically, when you already have loans that are locked in and amortized over a period of time, then apply and secure a line of credit, the LOC is for some fast cash that may be required or needed without the jumping through hoops of a loan. This may have been an exercise by EM to payoff something coming due, or maybe the interest due on a sizeable demand loan.....or this could be the cash required to sign one of our two top guns for the money up front on the new NHL salary. The only down fall to LOC is when things or other loans turn upside down, the bank can call the LOC in at any time to pay it off. But, something is still going on behind the scenes.

 

[Sensung]

Great to hear that Melnyk has borrowed even more money against the Sens.

 

[Tnuoc Alucard]

Great to hear that Melnyk has borrowed even more money against the Sens.

Do we know that he's using the Team as collateral?

 

[Qward]

Do we know that he's using the Team as collateral?

So in one breath you say that the team keeps "liquid capital" for tax reasons and in the next you question if Melnyk would use the team to back a loan?

You remind me of the people on the investment commercials mad because their mutual funds have high fees and low returns. You have no idea what you are talking about.

I tried to be nice. Twice. But for real. Enough.

 

[Ray Kinsella]

Do we know that he's using the Team as collateral?

Do we know that he isn't? Please provide a link and sources that he isn't.

And don't respond with the opposite George, just provide.

 

[Tnuoc Alucard]

Do we know that he isn't? Please provide a link and sources that he isn't.

And don't respond with the opposite George, just provide.

Point is the poster I quoted, who did not provide a link or sources, can't say he's borrowing against the team.

 

[Tnuoc Alucard]

So in one breath you say that the team keeps "liquid capital" for tax reasons and in the next you question if Melnyk would use the team to back a loan?

You remind me of the people on the investment commercials mad because their mutual funds have high fees and low returns. You have no idea what you are talking about.

I tried to be nice. Twice. But for real. Enough.

I said it may be better, for tax purposes, to NOT use Liquid cash or liquid assets, to do the things the LOC is going to be used for.

It also depends on the rate of return the Liquid cash or liquid assets are bringing in, vs the cost of using the LOC. Why forgo future interest, for a short term need for some cash, if you have a favourable interest rate with your LOC.

I would use my LOC before cashing in some liquid assets, to make a major purchase.

 

[Ray Kinsella]

Point is the poster I quoted, who did not provide a link or sources, can't say he's borrowing against the team.

Do we know that he isn't? Please provide a link and sources that he isn't.