Confirmed with Link: Senators are for sale - and it’s a Gong Show

[Nac Mac Feegle]

I'm no expert here, but Canada has some of the lowest housing vacancy rates in the G8, and we're set to bring in 500k new Canadians, and hardly anyone is building new housing.

That all sounds like one hell of a great setup for anyone building any kind of home or condo.....doesn't it? Especially in a city that is virtually recession-proof.

 

[BonHoonLayneCornell]

A lot of interest being shown doesn't necessarily translate to a high closing price. There's always a whole lot of looky-loos who want the appearance of involvement. It's like certain people who go to restaurants they can't afford so they can see and be seen. It doesn't matter if they're eating the cheapest stuff on the menu, they're at the table and that's the whole point.

The real estate piece will certainly be interesting to the long term investor but I reckon the Canadian national TV deal will be of more immediate consequence as it comes up for renegotiation in 2025-26. The real estate slice of the equation might need to play out over 20-25 years to realize all potential and to complete all the various builds and projects associated. That's not something any investor would be basing a large percentage of the deal off of.

I guess we'll find out soon enough what the team sells for.

According to Garrioch's article a little while ago at least 2 of those parties made offers to Melnyk for $650+ mil, so there is some real genuine interest. Roger Greenberg was on TV saying he wanted in. Big players like Andre Desmarais aren't getting in there for kicks either, so while there may be some lookers, it does appear to be a bidding war in excess of the above number at minimum.

 

[coladin]

Fair enough. I guess that's for them to figure out and likely wait many years for the investment to be realized sort of like Melnyk selling for a ransom 20+ years later.

From a fan perspective, it seems not worth worrying about with so many interested parties clearly ready to undertake whatever it will take with the new arena commitment being a required inclusion of the sale.

They aren't allowed to move them, and surely, nobody would ever be foolish enough to consider paying anywhere close to the rumored price tag just to keep the team out in Kanata.

Yeah, you make some good points, and ultimately the people buying this have forecasted what this will cost. I guess on e can look at the Tampa Bay arena site, and all the investment that went into prime real estate and how well that worked out. Of course, Florida is a little more attractive year round!

There is also a huge potential for either redevlopment of the CTC or whatever else they may have planned there, as that is in the purchase price...more land!

 

[coladin]

I'm no expert here, but Canada has some of the lowest housing vacancy rates in the G8, and we're set to bring in 500k new Canadians, and hardly anyone is building new housing.

That all sounds like one hell of a great setup for anyone building any kind of home or condo.....doesn't it? Especially in a city that is virtually recession-proof.

True, but I don't see Lebreton being an affordable housing location, unless this is something negotiated with the City as part of the parcel of land, and a requirement of the "free" parcel

 

[Crosside]

GARRIOCH: As groups try to recruit Ryan Reynolds, sale of Senators may be about to heat up

LOS ANGELES — The sale of the Ottawa Senators could heat up as early as this week, and Ryan Reynolds may play a big role with the next ownership group.

ottawasun.com

 

[BonHoonLayneCornell]

GARRIOCH: As groups try to recruit Ryan Reynolds, sale of Senators may be about to heat up

LOS ANGELES — The sale of the Ottawa Senators could heat up as early as this week, and Ryan Reynolds may play a big role with the next ownership group.

ottawasun.com

• André Desmarais of Power Corp, who was part of a failed bid for the LeBreton Flats project five years ago, is tight with Bettman. There has been talk he made a pitch for the Senators several years ago but late owner Eugene Melnyk didn’t want to sell at the time;
• Hamilton billionaire Michael Andlauer, who owns 20 per cent of the Montreal Canadiens and is alternate governor for the club. He’s interesting because he’ll get backing from Habs owner Geoff Molson with the NHL’s board;
• Rocco Tullio, a Windsor-based developer who offered $650 million for the team last November before Melnyk passed away. The belief is Tullio is partnering with Andlauer to study a joint bid;
• Paul and Michael Paletta of Alinea Group Holdings have confirmed to this newspaper through a spokesperson they’re considering a bid;
• Toronto real estate developers Jeffrey and Michael Kimel, who are on the board of the Harlo Financial Group, which invests in real estate, wealth management and the entertainment industry;
• Farmboy chief executive officer Jeff York, who is trying to put together a group of local investors to partner with the new owner;
• Paul Rivett, co-owner of the Toronto Star, who is is trying to put a group together;
• Neil Malhotra of Ottawa-based Claridge Homes has stepped up his efforts to make bid because of the opportunity for real estate development. Claridge has been linked to York’s group but we’re led to believe there haven’t been any discussions.

 

[Emerica]

• André Desmarais of Power Corp, who was part of a failed bid for the LeBreton Flats project five years ago, is tight with Bettman. There has been talk he made a pitch for the Senators several years ago but late owner Eugene Melnyk didn’t want to sell at the time;
• Hamilton billionaire Michael Andlauer, who owns 20 per cent of the Montreal Canadiens and is alternate governor for the club. He’s interesting because he’ll get backing from Habs owner Geoff Molson with the NHL’s board;
• Rocco Tullio, a Windsor-based developer who offered $650 million for the team last November before Melnyk passed away. The belief is Tullio is partnering with Andlauer to study a joint bid;
• Paul and Michael Paletta of Alinea Group Holdings have confirmed to this newspaper through a spokesperson they’re considering a bid;
• Toronto real estate developers Jeffrey and Michael Kimel, who are on the board of the Harlo Financial Group, which invests in real estate, wealth management and the entertainment industry;
• Farmboy chief executive officer Jeff York, who is trying to put together a group of local investors to partner with the new owner;
• Paul Rivett, co-owner of the Toronto Star, who is is trying to put a group together;
• Neil Malhotra of Ottawa-based Claridge Homes has stepped up his efforts to make bid because of the opportunity for real estate development. Claridge has been linked to York’s group but we’re led to believe there haven’t been any discussions.

Garrioch just recycling articles at this point

 

[BonHoonLayneCornell]

Garrioch just recycling articles at this point

Lol, gotta pay them bills right! Always insightful from Bruce.

 

[Ice-Tray]

Still, interesting to ready that Reynolds is an Asset to be woed by the winning bid. Also interesting to see that the league may want him in as well.

It all looks like a very unique team sale process.

 

[BonHoonLayneCornell]

Still, interesting to ready that Reynolds is an Asset to be woed by the winning bid. Also interesting to see that the league may want him in as well.

It all looks like a very unique team sale process.

I was hoping it would be that way. With so many interested parties, it would be a shame to waste the opportunity that is Ryan Reynolds because he signed up with one bid in particular and is just cast aside otherwise.

Really looking forward to the possibility of some behind the scenes TV content of my favorite sports franchise. Just seems like that's too good to be true for the Senators.

 

[Ice-Tray]

I was hoping it would be that way. With so many interested parties, it would be a shame to waste the opportunity that is Ryan Reynolds because he signed up with one bid in particular and is just cast aside otherwise.

Really looking forward to the possibility of some behind the scenes TV content of my favorite sports franchise. Just seems like that's too good to be true for the Senators.

That’s what I’m hoping for as well, it’s a huge win for the fanbase, and the popularity of the team.

 

[Sun God Nika]

A lot of interest being shown doesn't necessarily translate to a high closing price. There's always a whole lot of looky-loos who want the appearance of involvement. It's like certain people who go to restaurants they can't afford so they can see and be seen. It doesn't matter if they're eating the cheapest stuff on the menu, they're at the table and that's the whole point.

The real estate piece will certainly be interesting to the long term investor but I reckon the Canadian national TV deal will be of more immediate consequence as it comes up for renegotiation in 2025-26. The real estate slice of the equation might need to play out over 20-25 years to realize all potential and to complete all the various builds and projects associated. That's not something any investor would be basing a large percentage of the deal off of.

I guess we'll find out soon enough what the team sells for.

And when the team sells for 800m+ We will make sure to bump a post like this.

You are suggesting highly wealthy individuals are just pretending to be interested in this team. These type of people highly value their time and aren’t stupid enough to want to pretend to be at a dinner table

 

[BankStreetParade]

According to Garrioch's article a little while ago at least 2 of those parties made offers to Melnyk for $650+ mil, so there is some real genuine interest. Roger Greenberg was on TV saying he wanted in. Big players like Andre Desmarais aren't getting in there for kicks either, so while there may be some lookers, it does appear to be a bidding war in excess of the above number at minimum.

Bids made without any due diligence I would imagine (as the team was reportedly not for sale and Melnyk wasn't interested in fielding offers). So, I guess we'll see when they all get the chance to investigate the team's financials what the winning offer will be. Hell, will be interesting to see how many groups stay involved after the disclosure of financial statements.

The team is obviously not going to get sold for a discount but I'm also not inclined to believe some of the eye-watering numbers being discussed either. A lot of the "interested" parties are still in the "exploring a bid" or "trying to put together a group" phase of interest.

 

[bert]

A lot of interest being shown doesn't necessarily translate to a high closing price. There's always a whole lot of looky-loos who want the appearance of involvement. It's like certain people who go to restaurants they can't afford so they can see and be seen. It doesn't matter if they're eating the cheapest stuff on the menu, they're at the table and that's the whole point.

The real estate piece will certainly be interesting to the long term investor but I reckon the Canadian national TV deal will be of more immediate consequence as it comes up for renegotiation in 2025-26. The real estate slice of the equation might need to play out over 20-25 years to realize all potential and to complete all the various builds and projects associated. That's not something any investor would be basing a large percentage of the deal off of.

I guess we'll find out soon enough what the team sells for.

What do you think its going to sell for?

 

[BankStreetParade]

And when the team sells for 800m+ We will make sure to bump a post like this.

You are suggesting highly wealthy individuals are just pretending to be interested in this team. These type of people highly value their time and aren’t stupid enough to want to pretend to be at a dinner table

Are some pretending? Maybe. Are some really serious? Definitely. Are some getting their feet wet on the process for a more serious bid down the road for another franchise? Also maybe. I've worked in really high end restaurants for a long time, frequented by the very same type of clientele we're discussing here, and you wouldn't believe how much shit these guys talk. Some of them just want to be seen as having been part of the conversation, there's no question in my mind. That doesn't mean all of them but there's definitely a good number of the 20 or so groups/purchasers believed to be involved who are.

 

[Pierre from Orleans]

Just make sure deadpool is part owner.

 

[Crosside]

Interesting that not necessarily the group that make the best offer, would be necessary the new owner.

 

[Silky Johnson]

I don't want any celebrities. Give me real business people. Don't want any stupid shows. This is not a circus and reality TV project. Ok, no one make any comments about being a curcus lol

You have obviously not watched Welcome to Wrexham if you think it is a reality TV "circus".

It's a powerful and compelling documentary about a passionate but down and out team/fan base bring brought back to like by two celebrity owners.

Ryan and Rob show nothing but love of sport, commitment to a community and a strong desire to succeed. Its really a very touching series.

We should be so lucky to have people like that in our ownership group, celebrity or not.

The added revenue RR could bring with his marketing abilities would be gravy.

 

[BankStreetParade]

What do you think its going to sell for?

I think $700M is more than fair, considering the reality of the market and the need to also front the money for a new arena build. I've seen $900M-$1B mentioned in some articles and in commentary and I think that's absolutely insane. I just don't know how an investor, or a group of investors, recoups their money on that type of sale price.

 

[PlayersLtd]

A lot of interest being shown doesn't necessarily translate to a high closing price. There's always a whole lot of looky-loos who want the appearance of involvement. It's like certain people who go to restaurants they can't afford so they can see and be seen. It doesn't matter if they're eating the cheapest stuff on the menu, they're at the table and that's the whole point.

The real estate piece will certainly be interesting to the long term investor but I reckon the Canadian national TV deal will be of more immediate consequence as it comes up for renegotiation in 2025-26. The real estate slice of the equation might need to play out over 20-25 years to realize all potential and to complete all the various builds and projects associated. That's not something any investor would be basing a large percentage of the deal off of.

I guess we'll find out soon enough what the team sells for.

What exactly are you basing this on? I don't think the ultra high net worth are the type to posture on something like this if they aren't serious. They might waste a lot of things but time isn't really one of them.

 

[BankStreetParade]

What exactly are you basing this on? I don't think the ultra high net worth are the type to posture on something like this if they aren't serious. They might waste a lot of things but time isn't really one of them.

You think these types of people are sitting there reading spreadsheets and financial disclosure documents? They have people who do it for them - lawyers, accountants, business advisors, etc. They aren't "wasting" their own time on the due diligence. Not to mention, rich people posture all the time about being in deals or working on deals. What are you even saying lol?

 

[PlayersLtd]

You think these types of people are sitting there reading spreadsheets and financial disclosure documents? They have people who do it for them - lawyers, accountants, business advisors, etc. They aren't "wasting" their own time on the due diligence. Not to mention, rich people posture all the time about being in deals or working on deals. What are you even saying lol?

I'm saying these people value their own integrity and time and are not 'looky loos' as you put it. You sound like you are judging and belittling the character of someone without actually knowing many people in that demographic to base it off.

If you are putting your name out there as a possible bidder it is because your are seriously contemplating it, not because you're trying to score cheap points with chicks at the bar.

 

[Nac Mac Feegle]

True, but I don't see Lebreton being an affordable housing location, unless this is something negotiated with the City as part of the parcel of land, and a requirement of the "free" parcel

Isn't there also a bylaw of some sort requiring mixed housing for developers? Perhaps not at the Flats, but a commitment to build lower income housing if you're also building the high end stuff (and everything seems unaffordable these days!)?

 

[Loach]

Are some pretending? Maybe. Are some really serious? Definitely. Are some getting their feet wet on the process for a more serious bid down the road for another franchise? Also maybe. I've worked in really high end restaurants for a long time, frequented by the very same type of clientele we're discussing here, and you wouldn't believe how much shit these guys talk. Some of them just want to be seen as having been part of the conversation, there's no question in my mind. That doesn't mean all of them but there's definitely a good number of the 20 or so groups/purchasers believed to be involved who are.

So, like yer a waiter/bartender?

 

[Tuna99]

What do you think its going to sell for?

the announced price will be $1 billion, but on paper the sale price will be $850 million.