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

[Que]

Kinda off topic but does a potential sale of the Senators have an effect on the cap next season?

As in could a sale or deep pocket new owner or group offset losses from COVID to raise the salary cap?

 

[DrSense]

Kinda off topic but does a potential sale of the Senators have an effect on the cap next season?

As in could a sale or deep pocket new owner or group offset losses from COVID to raise the salary cap?

No, the cap is linked to revenue. The sales of the Sens won't impact revenue from a league wide perspective. Also, it's not like expansion where the $'s of the sale flow to the current owners. The sale of the Senators will go to Melnyk's estate (daughters) and also used to pay off his debts.

Now is it possible a new ownership group will lead to higher revenue for the Sens, thereby increasing the cap a smidge? Possible, but the team's appeal impacts revenue more than new owners, so don't expect any impact on the cap. For the Sens, it is likely the team will see an expanded budget to support the team going forward, as most new ownership groups invest material $s at the beginning of their tenure to make an impact.

 

[Tnuoc Alucard]

No, the cap is linked to revenue. The sales of the Sens won't impact revenue from a league wide perspective. Also, it's not like expansion where the $'s of the sale flow to the current owners. The sale of the Senators will go to Melnyk's estate (daughters) and also used to pay off his debts.

Now is it possible a new ownership group will lead to higher revenue for the Sens, thereby increasing the cap a smidge? Possible, but the team's appeal impacts revenue more than new owners, so don't expect any impact on the cap. For the Sens, it is likely the team will see an expanded budget to support the team going forward, as most new ownership groups invest material $s at the beginning of their tenure to make an impact.

The expansion fees, that every owner shared when both the Knights and Kraken entered the NHL also had zero impact on the Cap, as it was not HRR, but compensation for each owners loss of market share…. Their slice of the “NHL pie” So to speak became a little thinner.

each owner received their share of the expansion fees, and did with it as they chose, they were not required to reinvest in their franchise, Arena or anything related to the operation of their team…

 

[Que]

No, the cap is linked to revenue. The sales of the Sens won't impact revenue from a league wide perspective. Also, it's not like expansion where the $'s of the sale flow to the current owners. The sale of the Senators will go to Melnyk's estate (daughters) and also used to pay off his debts.

Now is it possible a new ownership group will lead to higher revenue for the Sens, thereby increasing the cap a smidge? Possible, but the team's appeal impacts revenue more than new owners, so don't expect any impact on the cap. For the Sens, it is likely the team will see an expanded budget to support the team going forward, as most new ownership groups invest material $s at the beginning of their tenure to make an impact.

I was more wondering if it was legal for a new ownership group to pay the remaining debt owed from the league in regards to COVID loans.

Imagine the owners of the Sens being the reason escrow went down early and the cap up early.

Free agents don’t want to sign here? After that I think we’re a preferred destination.

 

[Golden_Jet]

The players owe the debt , not the owners.

Why would a team pay off the debt on behalf of all the players in the league.

 

[Que]

The players owe the debt , not the owners.

Why would a team pay off the debt on behalf of all the players in the league.

Flexing.

I think the total cost of the deal will be north of 1.2 billion and may come on at 1.6 or greater. Tacking on another 80 million or something isn’t really noticed at that point.

If you’re a new owner you want to make a good impression on everyone; the owners, the players, the fans. Raising the cap and/or lowering escrow would be mutually beneficial for all parties.

 

[Golden_Jet]

Flexing.

I think the total cost of the deal will be north of 1.2 billion and may come on at 1.6 or greater. Tacking on another 80 million or something isn’t really noticed at that point.

If you’re a new owner you want to make a good impression on everyone; the owners, the players, the fans. Raising the cap and/or lowering escrow would be mutually beneficial for all parties.

Ok if you think so, no owner has ever done that in any league, but then again it wouldn’t be allowed anyways.

 

[UglyPuckling]

Flexing.

I think the total cost of the deal will be north of 1.2 billion and may come on at 1.6 or greater. Tacking on another 80 million or something isn’t really noticed at that point.

If you’re a new owner you want to make a good impression on everyone; the owners, the players, the fans. Raising the cap and/or lowering escrow would be mutually beneficial for all parties.

Ok if you think so, no owner has ever done that in any league, but then again it wouldn’t be allowed anyways.

The CBA is basically the rules the league and everyone involved follows. Revenue sharing (aka HRR) is spelled out in the CBA. I don't think there was any provision in the CBA that would allow an owner to contribute additional money & to reduce the players share. Interesting subject though.

Having said that, I don't see any motivation for the new Senators ownership group to do what is being suggested. I think they'd want to be viewed as good corporate citizens and would also be highly motivated to recoup their huge investment.

If they stick to their knitting so to speak and boost attendance and revenues, they will be making the best contribution they can make to all parties involved.

I also think some are a little myopic when it comes to the benefits of a rising cap. Not only will the Senators benefit, but so will the other 31 teams. Player's salaries will rise as a consequence, and competition for players that will improve a roster will become higher. The flat cap (COVID) environment was likely better for teams with cap room (versus those teams that were capped out).

 

[Big Muddy]

The CBA is basically the rules the league and everyone involved follows. Revenue sharing (aka HRR) is spelled out in the CBA. I don't think there was any provision in the CBA that would allow an owner to contribute additional money & to reduce the players share. Interesting subject though.

Having said that, I don't see any motivation for the new Senators ownership group to do what is being suggested. I think they'd want to be viewed as good corporate citizens and would also be highly motivated to recoup their huge investment.

If they stick to their knitting so to speak and boost attendance and revenues, they will be making the best contribution they can make to all parties involved.

I also think some are a little myopic when it comes to the benefits of a rising cap. Not only will the Senators benefit, but so will the other 31 teams. Player's salaries will rise as a consequence, and competition for players that will improve a roster will become higher. The flat cap (COVID) environment was likely better for teams with cap room (versus those teams that were capped out).

A fan base can be myopic at times. I think we caught up with summer of Pierre and the moves we made without thinking as much about that other teams weren't static and taking steps to improve as well. New Jersey and Buffalo are 2 teams (there's probably other examples as well) I think fit this scenario and have made it a bit harder for us to improve in the Eastern Conference.

 

[Cosmix]

A fan base can be myopic at times. I think we caught up with summer of Pierre and the moves we made without thinking as much about that other teams weren't static and taking steps to improve as well. New Jersey and Buffalo are 2 teams (there's probably other examples as well) I think fit this scenario and have made it a bit harder for us to improve in the Eastern Conference.

I think we improved the top 6 but weakened the bottom 6 and did little to improve the D other than insert Sanderson into the 2nd pair. The coaching staff is still the same, as is the GM, and ownership.

 

[Big Muddy]

I think we improved the top 6 but weakened the bottom 6 and did little to improve the D other than insert Sanderson into the 2nd pair. The coaching staff is still the same, as is the GM, and ownership.

Sure, I agree.

My post was about the other side of the coin though & what other teams did. It was an external versus internal focus because it's not only what we do, or don't do. Sometimes we are too focused just on the internal elements. What UP mentioned about other teams having more money to spend made me think of this. What the other teams are doing is also very important.

 

[DrSense]

The expansion fees, that every owner shared when both the Knights and Kraken entered the NHL also had zero impact on the Cap, as it was not HRR, but compensation for each owners loss of market share…. Their slice of the “NHL pie” So to speak became a little thinner.

each owner received their share of the expansion fees, and did with it as they chose, they were not required to reinvest in their franchise, Arena or anything related to the operation of their team…

By almost zero impact, you mean SOME impact. But to your point, it is certainly not an obligation to do so.

However, history has shown when an expansion fee is dispersed, there is bump in team spending the next year league wide. It's not like the owners didn't have enough cash before (they are billionaires), but the expansion funds sit in the franchise as it's own business unit, and it's not a simple tax move to simply take the ~$30 million out. It's taxable and a pain. So these billionaires can either sit on the higher cash balance in their pro franchise, take it out and get a tax hit, or provide some of it to the executive team to invest in staff, players etc. Many owners choose door #3.

 

[Beech]

any updates, rumours, etc. It sure seems quiet.

 

[Micklebot]

any updates, rumours, etc. It sure seems quiet.

Going off memory but, Garrioch updated things in intermission last game, league is still doing vetting of candidates and the teams financial statements haven't been opened up for viewing yet as a result. Garrioch speculates we won't know until end of March

 

[Golden_Jet]

The expansion fees, that every owner shared when both the Knights and Kraken entered the NHL also had zero impact on the Cap, as it was not HRR, but compensation for each owners loss of market share…. Their slice of the “NHL pie” So to speak became a little thinner.

each owner received their share of the expansion fees, and did with it as they chose, they were not required to reinvest in their franchise, Arena or anything related to the operation of their team…

Ya probably from the Kraken expansion fees, owners used it to help offset the huge losses during Covid.

 

[Bileur]

Another potential Senators suitor is poised to make a bid: The latest on the team's sale

A group led by Los Angeles-based entrepreneur Neko Sparks is preparing a bid to purchase the Senators when the sale process formally opens.

theathletic.com

Some really interesting stuff in here if the group has the $$.

 

[Micklebot]

Another potential Senators suitor is poised to make a bid: The latest on the team's sale

A group led by Los Angeles-based entrepreneur Neko Sparks is preparing a bid to purchase the Senators when the sale process formally opens.

theathletic.com

Some really interesting stuff in here if the group has the $$.

Idk how I feel about a consortium that large, 13-15 investors? Everything else about it sounds great though.

 

[BonHoonLayneCornell]

Idk how I feel about a consortium that large, 13-15 investors? Everything else about it sounds great though.

Getting closer to the $1 billion number tossed out there early on. Crazy.

“They are looking at going to upwards of $950 million for the team. If they have to go there, they will,” says the source. “They have the backers and the financial instruments to pull this off.”

 

[Big Muddy]

Another potential Senators suitor is poised to make a bid: The latest on the team's sale

A group led by Los Angeles-based entrepreneur Neko Sparks is preparing a bid to purchase the Senators when the sale process formally opens.

theathletic.com

Some really interesting stuff in here if the group has the $$.

Idk how I feel about a consortium that large, 13-15 investors? Everything else about it sounds great though.

Is there any highlights (a few key sentences) from the article that someone could share? Thanks.

 

[BonHoonLayneCornell]

Is there any highlights (a few key sentences) from the article that someone could share? Thanks.

They sound like about the opposite of Melnyk.

“One of the major partners is a major force in the music industry. He has worked with everybody from Jay Z to The Weeknd to Drake,” says a source. “They have relationships with individuals with high visibility that can be ambassadors for the team.”

The Sparks group believes they can help generate significant revenue in a downtown arena at LeBreton Flats by attracting concerts, festivals and other events using their connections in the entertainment industry.

“They also have solid plans on how to fill the arena on the other 300 days when the Senators aren’t playing,” says a source.

“They think the Senators are at the bottom of the list in terms of franchise valuation and they see a lot of ways to increase that valuation,” says a source.

The prospective ownership group has a vision of merging technology and culture while watching a Senators game to make it an immersive, inclusive experience “whether someone is at the arena or not.”

 

[Joeyjoejoe]

Wait I thought they opened the books to the interested parties back in the middle of December? Mendes's article states that they won't be doing that until 2 weeks from now. That NY based firm sure is slow as shit to moving this along.

 

[Big Muddy]

They sound like about the opposite of Melnyk.

“One of the major partners is a major force in the music industry. He has worked with everybody from Jay Z to The Weeknd to Drake,” says a source. “They have relationships with individuals with high visibility that can be ambassadors for the team.”

The Sparks group believes they can help generate significant revenue in a downtown arena at LeBreton Flats by attracting concerts, festivals and other events using their connections in the entertainment industry.

“They also have solid plans on how to fill the arena on the other 300 days when the Senators aren’t playing,” says a source.

“They think the Senators are at the bottom of the list in terms of franchise valuation and they see a lot of ways to increase that valuation,” says a source.

The prospective ownership group has a vision of merging technology and culture while watching a Senators game to make it an immersive, inclusive experience “whether someone is at the arena or not.”

Thanks.

 

[JackieDaytona]

I dunno how I feel about a group of SoCal richies with ties to entertainment and tech industries and big ideas about how to change the ‘experience’ of watching hockey taking over tbh. What do they know about hockey, about hockey fandom in Canada, about the culture that already exists? Not to say they couldn’t get it right or that changes aren’t welcomed (change will be good imo), just concerns here over other hinted groups who might have a more conventional approach, and understand things from a personal firsthand perspective in terms of Canadian culture and hockey.

Ultimately we don’t need someone to come in and IDEO the sens with disruptive design approaches and see the opportunity as a plaything experiment space(especially as a committee), we just need deep pockets and committed support for team and community.

 

[Cosmix]

They sound like about the opposite of Melnyk.

“One of the major partners is a major force in the music industry. He has worked with everybody from Jay Z to The Weeknd to Drake,” says a source. “They have relationships with individuals with high visibility that can be ambassadors for the team.”

The Sparks group believes they can help generate significant revenue in a downtown arena at LeBreton Flats by attracting concerts, festivals and other events using their connections in the entertainment industry.

“They also have solid plans on how to fill the arena on the other 300 days when the Senators aren’t playing,” says a source.

“They think the Senators are at the bottom of the list in terms of franchise valuation and they see a lot of ways to increase that valuation,” says a source.

The prospective ownership group has a vision of merging technology and culture while watching a Senators game to make it an immersive, inclusive experience “whether someone is at the arena or not.”

I am doubtful of the Sparks group being able to make a higher acceptable bid than some of the other potential bidders. Too many individuals involved.

 

[Adele Dazeem]

I dunno how I feel about a group of SoCal richies with ties to entertainment and tech industries and big ideas about how to change the ‘experience’ of watching hockey taking over tbh. What do they know about hockey, about hockey fandom in Canada, about the culture that already exists? Not to say they couldn’t get it right or that changes aren’t welcomed (change will be good imo), just concerns here over other hinted groups who might have a more conventional approach, and understand things from a personal firsthand perspective in terms of Canadian culture and hockey.

Ultimately we don’t need someone to come in and IDEO the sens with disruptive design approaches and see the opportunity as a plaything experiment space(especially as a committee), we just need deep pockets and committed support for team and community.

Oh so you want your proverbial cake and to eat it too.