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

[Tuna99]

That's one of the things (along with Reynolds) that worries me.

What happens 5-10 years down the line when the area is developed, there is nothing more to build, and the team's "Deadpool surge" has faded? Will all these new owners still be committed to building a strong organization once all the hype and fanfare (and fickle trends of the day) are over?

All I want is a rich group who wants to be here for the long haul. Who will invest in a high quality building and surrounding area, who will put money into the team consistently both in Ottawa and Belleville to have a strong NHL team and developmental team going forward.

That doesn't necessarily mean winning Cups or making the playoffs or hitting the cap every year, either. It means having a full front office and scouting staff, making sure the players have all the tools they need to develop in Belleville, having a good in-game experience for fans (hot water in the bathrooms, solid vendors for snacks, high quality ice for a fun & fast game, etc). Running a quality organization.

you had me at hot-water

 

[coladin]

Bratty is worth 1.39, but the article states the group has several partners, so if those partners collectively are worth another ~700 that's pretty good.

Andlaur was previously mentioned as the frontrunner, I'm not sure how accurate it is but Google suggests he's worth 1.2 b, so same ballpark, no? He partnering with Rocco Tullio apparently, no clue what he's worth but it's enough to have allegedly made an offer before Melnyk passed away.

Personally , I wouldn’t focus too much on net worth. They have a 4B project in Markham, and this venture would be half that.

It is all about what they can borrow, and any of the fellas looking to buy the team will have no issues borrowing whatever they need.

 

[HoweHullOrr]

Ryan Reynolds is the kingmaker. Remington Group knows this and likely have given him some nice equity/goodies in their partnership.

The NHL Board of Governors will do as Bettman says, as they have done for the last 30 years. Bettman will sell them on the influencer/media value of Reynolds, which will look especially valuable in the face of Bally Sports busting.

Nice theory, but it's the other way around. Bettman finds out what the Board wants, and then promotes & advances those objectives.

The NHL has a constitution and a Board of Governors. The constitution dictates how decisions are made. In Article 2.1.b. of the Constitution it states the purpose of the Constitution and League is "The promotion of the common interests of members of the League, each member being an owner of a professional hockey club".

Bettman serves at the pleasure of the Board. He can be fired by the Board, and the Board can appoint another Commissioner which of course is laid out in the Constitution as well. This is the way all corporations are run as well, not just the NHL.

The Board can decide to reject a an offer from a prospective owner to purchase a NHL club. This happened with Balsillie's attempt to purchase the Phoenix Coyotes. "The criteria set forth in the [NHL] constitution and bylaws relates to financial wherewithal, character, integrity and the view whether or not the other owners would deem you a good partner," Bettman said. When asked why Reinsdorf's group's application was approved, Bettman said, "That's a question better directed to the governors because they're the ones who vote."

In the sale of the Penguins to FSG (Fenway), the Penguins owner had already reached an agreement for the sale of the Penguins to Fenway and 2 weeks later the Board approved the agreement that had been reached and the sale: "The approval from the Board of Governors comes less than two weeks after the Penguins reached an agreement for Fenway Sports Group to acquire controlling interest in the team.".

Bettman isn't a pied piper telling a hapless bunch of successful, powerful, uber-wealthy billionaires what to do. For those that have experience in corporate governance, the NHL constitution and the way it is run is very similar to corporations and the idea that Bettman is a king or autocrat that tells owners/Board of Governors what to do even if its against their wishes is pretty far fetched. Bettman's success no doubt is that he understands what his BoG wants and has helped orchestrate that in the past. Bettman wouldn't be where he is today if he didn't do this and was going against the wishes of the BoG.

 

[Mingus Dew]

Personally , I wouldn’t focus too much on net worth. They have a 4B project in Markham, and this venture would be half that.

It is all about what they can borrow, and any of the fellas looking to buy the team will have no issues borrowing whatever they need.

Spot on as usual when it comes to development matters.

A lender's primary concern when sizing a real estate loan is the value of the collateral. The sponsor standing behind the deal needs to be credit worthy but only enough to backstop the limited recourse obligations.

 

[HoweHullOrr]

Personally , I wouldn’t focus too much on net worth. They have a 4B project in Markham, and this venture would be half that.

It is all about what they can borrow, and any of the fellas looking to buy the team will have no issues borrowing whatever they need.

What's that old expression those that don't need the money are the ones that can get loans (something to that effect).

I think it's the stability of the ownership's wealth. Melnyk was much richer when he first purchased the Senators but then things happened (his divorce, drug patents, lawsuits). So, perhaps the focus is more the stability or pervasiveness of the wealth, or looking at it from the opposite angle being more impervious to fluctuations or other external factors. Real estate can be a little volatile I suppose, but that's another topic for discussion (and a large one no doubt).

 

[Mingus Dew]

What's that old expression those that don't need the money are the ones that can get loans (something to that effect).

I think it's the stability of the ownership's wealth. Melnyk was much richer when he first purchased the Senators but then things happened (his divorce, drug patents, lawsuits). So, perhaps the focus is more the stability or pervasiveness of the wealth, or looking at it from the opposite angle being more impervious to fluctuations or other external factors. Real estate can be a little volatile I suppose, but that's another topic for discussion (and a large one no doubt).

RE loans are primarily underwritten based on appraised value of the real estate in question, as that is the security for the borrowing.

The developer behind the deal usually has to put up some guaranties so some creditworthiness is required, but not that much.

For example, the guarantor of a $200mm construction loan may be required to maintain a net worth in the $50mm range (exclusive of the value of the property).

 

[Micklebot]

Personally , I wouldn’t focus too much on net worth. They have a 4B project in Markham, and this venture would be half that.

It is all about what they can borrow, and any of the fellas looking to buy the team will have no issues borrowing whatever they need.

Agreed, also those Net worth estimates aren't always accurate anyways. With the shear volume in interested parties, i don't think finances will hold whoever wins the bid back,

 

[HoweHullOrr]

RE loans are primarily underwritten based on appraised value of the real estate in question, as that is the security for the borrowing.

The developer behind the deal usually has to put up some guaranties so some creditworthiness is required, but not that much.

For example, the guarantor of a $200mm construction loan may be required to maintain a net worth in the $50mm range (exclusive of the value of the property).

Yes, true. I've been through the process before.

 

[otown]

Dreger said it’s Remington group or bust for Ryan

I don't necessarily buy that. If the Remington group is rejected there is nothing stopping the potential purchaser from reaching out to Reynolds after the fact.

 

[Emerica]

I don't necessarily buy that. If the Remington group is rejected there is nothing stopping the potential purchaser from reaching out to Reynolds after the fact.

They may have just offered him a bigger piece of the pie compared to the other groups, but like you said, nothing is stopping them of circling back once the preferred bidder is chosen.

 

[Tuna99]

I don't necessarily buy that. If the Remington group is rejected there is nothing stopping the potential purchaser from reaching out to Reynolds after the fact.

Honestly the real value RR brings is the TV show, apart from that lots of celebrities own pro franchises and it doesn’t move the needle at all - what is moving the needle is the Disney+ show and the fan investment.

RR the man doesnt offer much after the first 24 hours - RR the content creator does. He can make Ottawa look amazing, and that’s what the NHL is after

 

[AchtzehnBaby]

I don't necessarily buy that. If the Remington group is rejected there is nothing stopping the potential purchaser from reaching out to Reynolds after the fact.

Totally agree. I figure he had to pair with someone "officially" to share financials, and planning.

 

[coladin]

Spot on as usual when it comes to development matters.

A lender's primary concern when sizing a real estate loan is the value of the collateral. The sponsor standing behind the deal needs to be credit worthy but only enough to backstop the limited recourse obligations.

And I imagine Remington will be forming lucrative alliances for the builds in Ottawa. Tomlinson. Lafarge. Kavanaugh. Many spinoffs upcoming to many groups that are all local.

What's that old expression those that don't need the money are the ones that can get loans (something to that effect).

I think it's the stability of the ownership's wealth. Melnyk was much richer when he first purchased the Senators but then things happened (his divorce, drug patents, lawsuits). So, perhaps the focus is more the stability or pervasiveness of the wealth, or looking at it from the opposite angle being more impervious to fluctuations or other external factors. Real estate can be a little volatile I suppose, but that's another topic for discussion (and a large one no doubt).

The Bratty family have generational wealth. And Real Estate is only volatile in one direction...up!

Agreed, also those Net worth estimates aren't always accurate anyways. With the shear volume in interested parties, i don't think finances will hold whoever wins the bid back,

And that 1.6B or whatever it was in 2015 or 2016 is probably north of 2.5B today...

 

[Gil Gunderson]

dissapointed Reynolds aligned with a group. Thought he would just chill and let the groups come to him. Maybe some groups don’t want him

I can see several groups not wanting someone else to be a the face of ownership. Much of owning a sports team is about ego and being part of the club.

At the same time, Reynolds probably held out for a group that has a good shot at getting in Bettman's good graces. Remington is already involved in the NHL and the Sens need a developer for a new arena.

 

[coladin]

I can see several groups not wanting someone else to be a the face of ownership. Much of owning a sports team is about ego and being part of the club.

At the same time, Reynolds probably held out for a group that has a good shot at getting in Bettman's good graces. Remington is already involved in the NHL and the Sens need a developer for a new arena.

Which is what I said a while ago as well. Reynolds needs the perfect partner that will allow him to do what he does best. Billionaires are quite egotistical, so he may have the right group here.

 

[Ice-Tray]

Nice theory, but it's the other way around. Bettman finds out what the Board wants, and then promotes & advances those objectives.

The NHL has a constitution and a Board of Governors. The constitution dictates how decisions are made. In Article 2.1.b. of the Constitution it states the purpose of the Constitution and League is "The promotion of the common interests of members of the League, each member being an owner of a professional hockey club".

Bettman serves at the pleasure of the Board. He can be fired by the Board, and the Board can appoint another Commissioner which of course is laid out in the Constitution as well. This is the way all corporations are run as well, not just the NHL.

The Board can decide to reject a an offer from a prospective owner to purchase a NHL club. This happened with Balsillie's attempt to purchase the Phoenix Coyotes. "The criteria set forth in the [NHL] constitution and bylaws relates to financial wherewithal, character, integrity and the view whether or not the other owners would deem you a good partner," Bettman said. When asked why Reinsdorf's group's application was approved, Bettman said, "That's a question better directed to the governors because they're the ones who vote."

In the sale of the Penguins to FSG (Fenway), the Penguins owner had already reached an agreement for the sale of the Penguins to Fenway and 2 weeks later the Board approved the agreement that had been reached and the sale: "The approval from the Board of Governors comes less than two weeks after the Penguins reached an agreement for Fenway Sports Group to acquire controlling interest in the team.".

Bettman isn't a pied piper telling a hapless bunch of successful, powerful, uber-wealthy billionaires what to do. For those that have experience in corporate governance, the NHL constitution and the way it is run is very similar to corporations and the idea that Bettman is a king or autocrat that tells owners/Board of Governors what to do even if its against their wishes is pretty far fetched. Bettman's success no doubt is that he understands what his BoG wants and has helped orchestrate that in the past. Bettman wouldn't be where he is today if he didn't do this and was going against the wishes of the BoG.

This place is classic for arguing to the extreme. No one described Gary as the pied piper, and no one described the BOG as hapless…

This was lots of words to simply try and downplay Bettman’s influence on the BOG. I’m surprised to see such naivety in here to be honest.

It’s like folks just read the league constitution, quote it, but haven’t been watching how the league actually operates.

Bettman “works for the owners”, but the owners aren’t sitting around running the NHL, that’s what Gary has been doing, and his influence on what directions the league takes is enourmous. That’s what happens when you hire the right guy for the job (from an ownership perspective). He is literally the guy who informs the decisions they make at BOG meetings.

They tend to take the advice of the guy they hired to advise them and run the league… shocking!

That’s why when people say that if Gary wants RR in the ownership group because he see tremendous publicity and league revenue opportunities there, you can bet that the BOG is going to back that presentation.

The league will get who they want in the owners box, especially since they have a ton of options here, and it’s not up to the Melnyks, but at the end of the day if folks want to believe that it comes down to what the BOG think, and that Bettman is just the front man, so be it.

 

[topshelf15]

Getting proper ownership will grow this franchise and fanbase to where it should have been many moons ago...Which is self reliant..Fans will support their teams through thick and thin if there is an understanding between ownership will do the same

 

[Tuna99]

Getting proper ownership will grow this franchise and fanbase to where it should have been many moons ago...Which is self reliant..Fans will support their teams through thick and thin if there is an understanding between ownership will do the same

New Ownership has to do a love fest - a massive summer tailgate party at the stadium with a day of free parking would be really fun.

 

[Ice-Tray]

New Ownership has to do a love fest - a massive summer tailgate party at the stadium with a day of free parking would be really fun.

Satellite love fest a too please…. If RR is in, he can bring the noise to B.C.

 

[AchtzehnBaby]

Satellite love fest a too please…. If RR is in, he can bring the noise to B.C.

I will be at the new Toronto ownership party

 

[Golden_Jet]

Honestly the real value RR brings is the TV show, apart from that lots of celebrities own pro franchises and it doesn’t move the needle at all - what is moving the needle is the Disney+ show and the fan investment.

RR the man doesnt offer much after the first 24 hours - RR the content creator does. He can make Ottawa look amazing, and that’s what the NHL is after

RR brings exposure to all of NHL, 100 million in social media followers .

 

[Oscar The Grouch]

Nice theory, but it's the other way around. Bettman finds out what the Board wants, and then promotes & advances those objectives.

The NHL has a constitution and a Board of Governors. The constitution dictates how decisions are made. In Article 2.1.b. of the Constitution it states the purpose of the Constitution and League is "The promotion of the common interests of members of the League, each member being an owner of a professional hockey club".

Bettman serves at the pleasure of the Board. He can be fired by the Board, and the Board can appoint another Commissioner which of course is laid out in the Constitution as well. This is the way all corporations are run as well, not just the NHL.

The Board can decide to reject a an offer from a prospective owner to purchase a NHL club. This happened with Balsillie's attempt to purchase the Phoenix Coyotes. "The criteria set forth in the [NHL] constitution and bylaws relates to financial wherewithal, character, integrity and the view whether or not the other owners would deem you a good partner," Bettman said. When asked why Reinsdorf's group's application was approved, Bettman said, "That's a question better directed to the governors because they're the ones who vote."

In the sale of the Penguins to FSG (Fenway), the Penguins owner had already reached an agreement for the sale of the Penguins to Fenway and 2 weeks later the Board approved the agreement that had been reached and the sale: "The approval from the Board of Governors comes less than two weeks after the Penguins reached an agreement for Fenway Sports Group to acquire controlling interest in the team.".

Bettman isn't a pied piper telling a hapless bunch of successful, powerful, uber-wealthy billionaires what to do. For those that have experience in corporate governance, the NHL constitution and the way it is run is very similar to corporations and the idea that Bettman is a king or autocrat that tells owners/Board of Governors what to do even if its against their wishes is pretty far fetched. Bettman's success no doubt is that he understands what his BoG wants and has helped orchestrate that in the past. Bettman wouldn't be where he is today if he didn't do this and was going against the wishes of the BoG.

Thanks for that lecture in corporate governance. You definitely took my post too literally.

Bettman is the kind of CEO that can convince the board what move to make and why, while letting them think it was their idea. I'm sure the BoG wants RR on board.

 

[Tuna99]

RR brings exposure to all of NHL, 100 million in social media followers .

Yes, but nobody in Krakow is going to buy a Sens jersey because RR bought the team, but they will buy a Sens jersey after they see what the Sens Zamboni driver has been through during a tough week and have become emotionally invested in the team.

 

[Ice-Tray]

That’s the thing, it’s the right time to follow this team on the rise, and RE has the star power to make it worth a watch by a pretty massive audience.

That and the cameos from his buddies, and the characters we have on this team…. Could finally be some glorious Sens TV, aside from, you know, the hockey

 

[Tuna99]

That’s the thing, it’s the right time to follow this team on the rise, and RE has the star power to make it worth a watch by a pretty massive audience.

That and the cameos from his buddies, and the characters we have on this team…. Could finally be some glorious Sens TV, aside from, you know, the hockey

If the team is making the playoffs and rising and you have the entire Ottawa Valley invested in the team - it’ll be a hit. RR is going to make Ottawa into something nobody else can do and people said couldn’t ever be done - RR will make Ottawa cool.