Ottawa Senators for sale (upd: sold to Michael Andlauer)

[Karl Eriksson]

A comfort letter isn't legally binding though, so again if you're talking about investing hundreds of millions of dollars I don't know how much that moves the needle.

A lot. I used to be in m&a and managed these processes. Most valuable ones are from indigenous groups.

 

[Yukon Joe]

A lot. I used to be in m&a and managed these processes. Most valuable ones are from indigenous groups.

Ah, but indigenous groups are a whole different matter.

The SCC has ruled that in a lot of development on traditional First Nations land there is a "duty to consult". That seems to be different than needing the formal consent of the FN, but this area of law is still evolving. In these cases a "comfort letter" doesn't equal formal agreement, but probably is good enough to satisfy the duty to consult.

That doesn't take away from the fact though that in common law an "agreement to agree" is not legally binding. A letter from the NCC stating "we hope to come to an agreement with the Ottawa Senators regarding the development of a new hockey arena at Labretton flats" is almost meaningless at law.

 

[Karl Eriksson]

Ah, but indigenous groups are a whole different matter.

The SCC has ruled that in a lot of development on traditional First Nations land there is a "duty to consult". That seems to be different than needing the formal consent of the FN, but this area of law is still evolving. In these cases a "comfort letter" doesn't equal formal agreement, but probably is good enough to satisfy the duty to consult.

That doesn't take away from the fact though that in common law an "agreement to agree" is not legally binding. A letter from the NCC stating "we hope to come to an agreement with the Ottawa Senators regarding the development of a new hockey arena at Labretton flats" is almost meaningless at law.

I’m just telling you from experience on around 8 major deals (biggest was over $2B) involving everything from a mine to a ferry company to a port to an airport and a large sports complex, that comfort letters from governments and regulators are heavily valued by buyers in de-risking projects. They usually indicate an intention to negotiate in good faith and they allow buyers to use cash flow models predicated on future projects. The residual risk gets priced into the choice of discount rate, just like beta is used to apply a sense of volatility to a security.

 

[red devil]

 

[Karl Eriksson]

Toronto money. At least it’s regional. Also developers know how to develop and the Lebreton flats is raw land.

 

[Voight]

Remington had previously tried to build an arena in Markham and get a second Toronto team so they do have somewhat of a pre existing relationship with Bettman.

 

[Anisimovs AK]

Yes and no.

Lots of teams have minority owners involved, but they still have one overall majority (or at least controlling) owner. A true consortium, with multiple minority owners becomes very unwieldy if there's no one person who can say "the buck stops here".

Definitely hasnt worked for nashville...

 

[LadyStanley]

Friedman with more background re Remington, including Hamilton rink and more.

 

[LadyStanley]

Offers being received

 

[LadyStanley]

Deadline for (initial) offers today.

 

[Golden_Jet]

GARRIOCH: The bids are in and here's the latest we have on the sale of the Senators

"League sources told this newspaper Wednesday the league has received at least three bids for the Senators and possibly a fourth."

ottawasun.com

 

[LadyStanley]

3 able-to-confirm bidders, perhaps a fourth. (From 15 kick-the-tires groups.)

Remington group. With Ryan Reynolds.
Michael Andlauer.
Kimel family. Former minority owners in Pittsburgh.

Neko Sparks?

Other names Postmedia has reported that expressed interest include Neil Malhotra of Claridge Homes, André Desmarais of Powercorp., former Toronto Star executive Paul Rivet and Patrick Dovigi, the CEO of GFL Environmental.

 

[Golden_Jet]

9 bids now

NHL’s Senators Sale Draws 9 Bids, Some Topping $900 Million

The Ottawa Senators received nine bids for the team prior to the deadline, include one from Ryan Reynolds' group. Some value team at $900+ million.

www.sportico.com

 

[BMN]

(I went to post something in the wrong thread......Sens bids: carry on!)

 

[Golden_Jet]

Novy-Williams: It's pretty rare to have this many groups seriously trying to buy a sports franchise

Eben Novy-Williams from Sportico on 9 groups bidding on the Sens, whether NHL teams are undervalued, and what's next in the sale process

www.tsn.ca

 

[LadyStanley]

Friedman has update on sale in Monday podcast

 

[Neil Patrick Harris]

Moving right along.

 

[Bizz]

Reynolds gettin' paid, he'll have the cash to buy the Sens in no time.

 

[LadyStanley]

 

[LadyStanley]

2nd round...minimum bid to be taken seriously seems to be $900m, some initial bids came in below that. One bid rumored to be $925m.

 

[AintLifeGrand]

wonder if Anson Carter's Atlanta group is involved...Sens would be a big hit in Atlanta..could probably keep the same name too

 

[WeaponOfChoice]

wonder if Anson Carter's Atlanta group is involved...Sens would be a big hit in Atlanta..could probably keep the same name too

If Atlanta gets a third team before Hamilton gets its second I riot

 

[rojac]

wonder if Anson Carter's Atlanta group is involved...Sens would be a big hit in Atlanta..could probably keep the same name too

wonder if Anson Carter's Atlanta group is involved...Sens would be a big hit in Atlanta..could probably keep the same name too

It’s been stated many times that part of the condition of the sale will be keeping the team in Ottawa.

 

[Barclay Donaldson]

wonder if Anson Carter's Atlanta group is involved...Sens would be a big hit in Atlanta..could probably keep the same name too

Zero chance. It was reported earlier two conditions of the sale was (1.) no relocation and (2.) having some sort of plan involving LeBreton flats.

 

[LadyStanley]

Some further discussion on Senators sale in Monday podcast.