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

[Ice-Tray]

This and the fact this group let RR managing the team. With Andlauer that like hockey and would be the majority owner. Reynolds would not have a big word on who hiring. Reynolds like to have the best at every position at all costs

Well I think everyone in here would like to see the best in every position….. that would be new and cool!

 

[Que]

Exactly how do they justify a one billion dollar price tag?

I know the surrounding development is big money...but what makes them think they can make that much profit on the development to cover the costs of an NHL team that supposedly has to make the second round to break even from year to year?

I think the value of the CTC can’t be underestimated. That alone could turn into a massive windfall.

This and the fact this group let RR managing the team. With Andlauer that like hockey and would be the majority owner. Reynolds would not have a big word on who hiring. Reynolds like to have the best at every position at all costs

That would be pretty cool @Crosside having Reynolds manage the team! I’m assuming in a POHO role with Dorion getting a 1 year grace period?

 

[boxbox]

Exactly how do they justify a one billion dollar price tag?

I know the surrounding development is big money...but what makes them think they can make that much profit on the development to cover the costs of an NHL team that supposedly has to make the second round to break even from year to year?

well it becomes an expensive asset in their possession, and there are only 32 available in the world and not often become available to buy...also 1 billion is not what it was even like 5 years ago ... the Broncos sold for almost 5 billion and Man U many believe could fetch close to 7 billion...I am fully aware the Senators are not on their level but they are a team in a major sport league nonetheless ... MLB teams give out 300-400 million dollar deals to players for 10 season of service hoping they bring success individual and team alike /interest in the team/ marketability...now all of the sudden 1 billion for something that is yours and you own 100 % almost seams like a bargain. Even if you just let it sit and just pay all the bills on time chances are in 5 years that 1 billion investment is now worth 1.1 billion and just like that you have you an extra 100 million. 100 million is FU MONEY for 99.5% of the worlds population. The best part tho ? well if you run it well and take care of it with respect, help it become successful and do whats necessary for that to become a trademark . to one day it reward you with a shiny object... lost in the euphoria of winning a couple more shiny objects the thought of letting it go never crosses your mind...until the day when a group Sheiks walk into your office and offer you 4 billion for it ...

 

[Crosside]

I think the value of the CTC can’t be underestimated. That alone could turn into a massive windfall.



That would be pretty cool @Crosside having Reynolds manage the team! I’m assuming in a POHO role with Dorion getting a 1 year grace period?

Yes and Trotz for coach

 

[Silky Johnson]

Because some offers have the ability to make the league a ton more money, and more exposure, not just cash for the outgoing owner.

It’s the reason why Bettman has been apparently counselling RR on his moves.

The money has to be on par across the competing bids to make the outgoing owner happy, the rest is on what the incoming owner has to offer.

Do not underestimate how a higher valuation for the team benefits the other owners.

Forbes valuations are just estimates. Actual, real life examples of money paid for a franchise moves valuations more than anything.

Say the Sens sell for 100M more then expected with multiple bidders and no specific conditions indicating that the price is an outlier.

With Ottawa being a midling value team, that would indicate a 3.2 Billion dollar increase in the perceived value of the league.

I promise you the owners of the league and Bettman would be very happy with that.

The ability of one owner over another to generate revenue is much more subjective. All likely bid winners will have somewhat deep pockets and will do a new Lebreton Arena deal. If not they would be stupid to outbid the others. RR may be a factor in this however, all but one group is reported to be open to his involvement.

Its hard to imagine a realistic scenario where a considerably higher sales price would not be accepted by all parties.

Note: If you think the 100M above estimated sale price is unlikely and doubt what the actual sale price does to Forbes valuations consider this.

The Forbes valuations for Ottawa in 2019 was 445M, it has increased to 800M as of this last December. Considering there was almost no difference (other then the COVID drop) in Hockey revenue over this period, how much of it is due to the Senators rumoured selling price of 800M - a 355M increase?

 

[Nac Mac Feegle]

well it becomes an expensive asset in their possession, and there are only 32 available in the world and not often become available to buy...also 1 billion is not what it was even like 5 years ago ... the Broncos sold for almost 5 billion and Man U many believe could fetch close to 7 billion...I am fully aware the Senators are not on their level but they are a team in a major sport league nonetheless ... MLB teams give out 300-400 million dollar deals to players for 10 season of service hoping they bring success individual and team alike /interest in the team/ marketability...now all of the sudden 1 billion for something that is yours and you own 100 % almost seams like a bargain. Even if you just let it sit and just pay all the bills on time chances are in 5 years that 1 billion investment is now worth 1.1 billion and just like that you have you an extra 100 million. 100 million is FU MONEY for 99.5% of the worlds population. The best part tho ? well if you run it well and take care of it with respect, help it become successful and do whats necessary for that to become a trademark . to one day it reward you with a shiny object... lost in the euphoria of winning a couple more shiny objects the thought of letting it go never crosses your mind...until the day when a group Sheiks walk into your office and offer you 4 billion for it ...

It's insane. Then when it's time for a new CBA the owners cry poor and claim they're not making any money.

 

[AchtzehnBaby]

Eugene was not stupid when he said. Someone have to offer me 700m to start talking.

Yeah and I remember some saying he should have accepted $450m - crazy

 

[Cosmix]

Daly noted the club may not go to the highest bidder and the owner has to be the right fit.

“You look at all aspects (of potential owners). It’s important to have solid ownership with the financial wherewithal and the (right) structure of the ownership groups,” Daly said. “There’s also potential synergies with the team and the market. Those are all relevant factors.

“Galatioto Sports Partners, who are running the bidding process, want to maximize the value. I think ultimately we’d like to maximize the value and we know the club would like to maximize the value. But value has a number of ways of being defined. You look at a variety of factors and ultimately you pick what’s the best fit.”

Hmmm sounds an awful lot like the NHL will get "their guy" to me at the end of the day.....

This basically confirms my thoughts that echoed these words verbatim last night....

It means that the owner and the league must both agree on the sale; not that one dictates who the buyer will be and the price to be paid. Some accommodation would have to be made if there is a disagreement, such as the league compensating the Melnyks in some way for the difference in price, in order to avoid going to court.

 

[Samsquanch]

It means that the owner and the league must both agree on the sale; not that one dictates who the buyer will be and the price to be paid. Some accommodation would have to be made if there is a disagreement, such as the league compensating the Melnyks in some way for the difference in price, in order to avoid going to court.

It means exactly what was written. I can read just fine thanks.

It's not just going to the highest bidder. Period.

 

[Cosmix]

This and the fact this group let RR managing the team. With Andlauer that like hockey and would be the majority owner. Reynolds would not have a big word on who hiring. Reynolds like to have the best at every position at all costs

RR will not be "managing the team". He will be doing PR for the team and possibly get a small part of the ownership (less than 5%).

 

[Golden_Jet]

It means that the owner and the league must both agree on the sale; not that one dictates who the buyer will be and the price to be paid. Some accommodation would have to be made if there is a disagreement, such as the league compensating the Melnyks in some way for the difference in price, in order to avoid going to court.

Lol, there is no compensation, there is no going to court.

 

[coladin]

"Generational wealth" sounds super gross tbh. It's sounds like "pedigree".

I'm in a weird place. It sounds like whoever is going to be buying the Senators should be spending that money to combat climate change or something. There is no way I'm not gonna low-key hate our ownership.

Well, if it makes you feel any better, generational wealth is usually pretty safe and boring. Won’t hear many securities commissions, fraud, etc…like first time billionaires!

 

[coladin]

Good on you for raising rent on people during an incredibly tough time!

Just me? And where did I say I raised my rents. Don’t judge without knowing anything because I am sure as hell you couldn’t tolerate being judged the way you live.

 

[coladin]

I just want an ownership group that is in it for the long haul. One that won't lose interest and half ass things once the shiny new toy phase has passed (and once all the land has been developed). That's why I'm wary of any celebrity (and some of these developers) being such a big part of any new ownership.

Same.

 

[Pierre from Orleans]

Yeah and I remember some saying he should have accepted $450m - crazy

Was that said before the surrounding land and development was part of the deal? I have a feeling it was...

 

[Golden_Jet]

Just me? And where did I say I raised my rents. Don’t judge without knowing anything because I am sure as hell you couldn’t tolerate being judged the way you live.

Post 1104, my properties and rents all skyrocketed during Covid, is the post that l’auvelette responded too.

 

[coladin]

Post 1104, my properties and rents all skyrocketed during Covid, is the post that l’auvelette responded too.

I know what he said. I didn’t “raise” rents. In fact, my company was one of the only that froze rents in 2020. Coupled with the government freezing them in 2021, this has dramatically changed the arc of rents .

New rents is a whole different ballgame. Those rents are up, an lot. And I am always below market. But people can judge all they want, but they really don’t know any of the facts of how businesses run or need to be run.

 

[Tuna99]

If the winning bidder (or joint venture) doesn't have Reynolds on its team, it doesn't seem like there's anything that precludes them from hiring his services to do his thing after the award of the franchise has been made.

I agree but I think where the negotiations get sticky is how do you divide the money between RR and the Senators when a kid in China is buying a Sens hat because he saw the show RR produced. RR will want his share of that revenue increase because he has it all at Rexham - maybe you could pay him enough but he’s seems to want his fingers in every piece of the pie not just the profits from the screen part of it - he wants his cut of the brand, merchandise, Corporate money, increased ticket sales

 

[Tnuoc Alucard]

the Senators have one of the higher regional TV deals in the league.

This very well may be the case…. But a 30 second spot on a Sens broadcast for McDonalds costs an 1/8 of the same spot on Leafs broadcast….. more eyeballs equals higher cost…. So because of Ottawa being a small Canadian market, they reap in fewer dollars in advertising dollars than the larger markets…. Economics 101

It was the sum of the parts. Melnyk being a shitty owner played into it like the other factors. Pretending otherwise is silly.

Again, only a tiny minority on the entire Ottawa fan base thought EM was a shitty owner, and yes most did not think he was the best they could do, and did not allow it to influence them into attending games or not.

 

[Silky Johnson]

RR will not be "managing the team". He will be doing PR for the team and possibly get a small part of the ownership (less than 5%).

5% could be 40-50M. I seriously doubt he goes in for that much.

Maybe a partner gives him more equity for perceived marketing value, but I doubt he pays more then 10M out of his pocket.

 

[Wondercarrot]

This very well may be the case…. But a 30 second spot on a Sens broadcast for McDonalds costs an 1/8 of the same spot on Leafs broadcast….. more eyeballs equals higher cost…. So because of Ottawa being a small Canadian market, they reap in fewer dollars in advertising dollars than the larger markets…. Economics 101


Again, only a tiny minority on the entire Ottawa fan base thought EM was a shitty owner, and yes most did not think he was the best they could do, and did not allow it to influence them into attending games or not.

lol, I’ll take conjecture & things you don’t know for $1000 Alex.
EM was responsible for the destruction of the relationship between the business community and the Senators.
Cost the team piles of money and goodwill in the community, as well as many knock on effects including the failure of its charitable foundation.
Those are facts.

 

[Golden_Jet]

This very well may be the case…. But a 30 second spot on a Sens broadcast for McDonalds costs an 1/8 of the same spot on Leafs broadcast….. more eyeballs equals higher cost…. So because of Ottawa being a small Canadian market, they reap in fewer dollars in advertising dollars than the larger markets…. Economics 101


Again, only a tiny minority on the entire Ottawa fan base thought EM was a shitty owner, and yes most did not think he was the best they could do, and did not allow it to influence them into attending games or not.

Links to cost of your ad prices.

TSN sells its ads as one channel and not five, all that matters to advertisers is that they're reaching more viewers.

 

[Que]

5% could be 40-50M. I seriously doubt he goes in for that much.

Maybe a partner gives him more equity for perceived marketing value, but I doubt he pays more then 10M out of his pocket.

I could see Reynolds being as high as a 25% owner.

The league desperately needs his celebrity status to gain viewership. I think he’d have that much in the bank by now, considering he sold his gym company for 400 million, made buku bux of the Deadpool series and was reportedly set to make 280 million from the sale of Mint Mobile to Verizon/T-Mobile (from what I remember anyways).

I could be wrong but I suspect Reynolds partnered with Remington to get his foot in the door in the commercial real estate game. The condo’s that could be built on the land where the current CTC sits and around the Lebretton Flats area could generate more wealth annually than the team itself.

 

[Golden_Jet]

I could see Reynolds being as high as a 25% owner.

The league desperately needs his celebrity status to gain viewership. I think he’d have that much in the bank by now, considering he sold his gym company for 400 million, made buku bux of the Deadpool series and was reportedly set to make 280 million from the sale of Mint Mobile to Verizon/T-Mobile (from what I remember anyways).

I could be wrong but I suspect Reynolds partnered with Remington to get his foot in the door in the commercial real estate game. The condo’s that could be built on the land where the current CTC sits and around the Lebretton Flats area could generate more wealth annually than the team itself.

Assuming the land zoning designation can be changed at CTC. I think 10% would be the highest for RR.

 

[Que]

Assuming the land zoning designation can be changed at CTC. I think 10% would be the highest for RR.

Can’t see how they couldn’t. The CTC borders residential land developments, is a relatively tall structure to allow for condo development and if the developers were to build shopping centres withen the project you keeping the commercial zoning requirements and just amending the current land zoning regulations.

Mind you, I work in retail - so I’m just purely speculating here.