Speculation: Theory as to why Eugene Melnyk backtracked on LeBreton

[Silencio]

It seems to me the league wants to expand to 34 teams and has identified Seattle, Quebec, and Houston as their targets for new teams. They won't pass up on the expansion fees to let a team move to any of those places, which limits the viability of relocation. A relocation fee would likely easily exceed 100m at this point, my guess is around 150m, given that Atlanta had to pay 60 mil to move to Winnipeg when franchise were valued at roughly half of what they are today.

So, for Melnyk to move, he needs to pony up 150m in relocation fees, find a suitable market that will lease him a building on a sweetheart deal or has a space for him to build a new arena (which he and whoever he partners with would be on the hook for ~500+ mil to build). When the team is already servicing as much debt as it's rumoured to be, that's a lot of extra costs to change markets with no guarantee that it will result in a better situation than he currently has.

Assuming Quebec, Seattle and Houston get expansion teams, what North American cities would even be left for relocation? Kansas City? Portland? Milwaukee?....Atlanta? (lol)

 

[BonkTastic]

It seems to me the league wants to expand to 34 teams and has identified Seattle, Quebec, and Houston as their targets for new teams.

Did something happen this week that I missed?

Last I heard, the league wants to stop at 32, and save Houston / Quebec for relocation (which they would add "relocation fees" charged to the new owner in addition to the sale price of the club).

 

[Tnuoc Alucard]

I think Atlanta's was 60 because everyone needed the Thrashers to get out of town. They got kicked out of their arena and had nowhere to play.

Phoenix's fee was set to 195 million in 2009. You'd have to think Ottawa's would be at least 300 million with the increase in league value and all. That would already probably be more than Melnyk's share of the Lebreton arena cost.

This is of course only a scenario where he threatens to sue the NHL and the board of governers.

NHL says Coyotes relocation fee up to $195M

 

[Tnuoc Alucard]

Agreed.

I just don't see how he could possibly end up in a better financial situation in another city. Lebreton rivals the best locations in the entire country, and he already has an established Senators fanbase here.

Even a city like Hamilton is no guarantee of success...all we have to do is look at the red-headed stepchildren in the Islanders and Devils in NYC to see how a huge markets treats the johnny come lately teams in comparison to their beloved Rangers. If Leaf fans in Ottawa won't convert to the Sens, why would the folks in the GTA migrate to a team in Hamilton?

Also, Hamilton never comes up in any discussion about expansion, only as a potential re-location site, when Jim Balsillie was contemplating buying the Coyotes and moving them to Hamilton.

 

[DylanSensFan]

Also, Hamilton never comes up in any discussion about expansion, only as a potential re-location site, when Jim Balsillie was contemplating buying the Coyotes and moving them to Hamilton.

Maybe he will buy the Senators and keep them in Ottawa (LaBreton Flats)? One can dream...

 

[Gil Gunderson]

Also, Hamilton never comes up in any discussion about expansion, only as a potential re-location site, when Jim Balsillie was contemplating buying the Coyotes and moving them to Hamilton.

Isn't Copps Coliseum already aging fast? The NHL would want a new arena or millions in renovations at the very least.

 

[Stylizer1]

Agreed.

I just don't see how he could possibly end up in a better financial situation in another city. Lebreton rivals the best locations in the entire country, and he already has an established Senators fanbase here.

Even a city like Hamilton is no guarantee of success...all we have to do is look at the red-headed stepchildren in the Islanders and Devils in NYC to see how a huge markets treats the johnny come lately teams in comparison to their beloved Rangers. If Leaf fans in Ottawa won't convert to the Sens, why would the folks in the GTA migrate to a team in Hamilton?

The Devils are in New Jersey. The Islanders have only been in NYC for less than 3 years and will be moving back to long island. Islanders have a huge following.

 

[Tnuoc Alucard]

Maybe he will buy the Senators and keep them in Ottawa (LaBreton Flats)? One can dream...

I think Melnyk stated, quite clearly, that the Senators are not for sale.

A dream it must remain, until he changes his mind.

 

[Gil Gunderson]

I think Melnyk stated, quite clearly, that the Senators are not for sale.

A dream it must remain, until he changes his mind.

I honestly can't see him owning the team for much longer if he can't come up with the dough for Lebreton.

It's going to reach a boiling point. Cap is going up and he's bleeding money. If he can't keep star players, it's only going to get worse. He's already tarnished his legacy with the fanbase and that won't help attendance very much.

I'm optimistic that he'll sell sooner or later. The only thing I'm worried about is if it's too late and Karlsson walks/gets traded for cost-control.

Even with Lebreton, I don't see this team ever winning a Cup, let alone becoming a perennial contender with this buffoon spending the bare minimum to keep the team afloat. I don't think he would spend like a contender even with every game selling out.

 

[Nac Mac Feegle]

The Devils are in New Jersey. The Islanders have only been in NYC for less than 3 years and will be moving back to long island. Islanders have a huge following.

It's all still Greater New York, the same way Hamilton is part of the GTA. People are loathe to move away from the original team in the roost.

 

[JD1]

Isn't Copps Coliseum already aging fast? The NHL would want a new arena or millions in renovations at the very least.

that rink is older that the CTC

 

[Micklebot]

I think Melnyk stated, quite clearly, that the Senators are not for sale.

A dream it must remain, until he changes his mind.

Pretty sure OJ said he didn't do it..

It's somewhat strange that this actually has to be said, but sometimes people don't tell the truth when they feel it's in their best interest to lie.

 

[Tnuoc Alucard]

I honestly can't see him owning the team for much longer if he can't come up with the dough for Lebreton.

It's going to reach a boiling point. Cap is going up and he's bleeding money. If he can't keep star players, it's only going to get worse. He's already tarnished his legacy with the fanbase and that won't help attendance very much.

I'm optimistic that he'll sell sooner or later. The only thing I'm worried about is if it's too late and Karlsson walks/gets traded for cost-control.

Even with Lebreton, I don't see this team ever winning a Cup, let alone becoming a perennial contender with this buffoon spending the bare minimum to keep the team afloat. I don't think he would spend like a contender even with every game selling out.

- He's not spending the "bare minimum", Ottawa is in the top third of the league re payroll for players

 

[BonkTastic]

that rink is older that the CTC

Way older.

Copps opened in like '85, I think?

 

[Tnuoc Alucard]

Pretty sure OJ said he didn't do it..

It's somewhat strange that this actually has to be said, but sometimes people don't tell the truth when they feel it's in their best interest to lie.

So an owner of a Pro Sports team, being asked if he has any intention of selling his team .............. is the SAME thing, in your mind, as the Prime Suspect in and double homicide being asked if he did it.

 

[Tnuoc Alucard]

Assuming Quebec, Seattle and Houston get expansion teams, what North American cities would even be left for relocation? Kansas City? Portland? Milwaukee?....Atlanta? (lol)

Ottawa and Calgary twitch uncomfortably as U.S.-based billionaires grow fond of the NHL

 

[BonkTastic]

The Islanders have only been in NYC for less than 3 years and will be moving back to Long Island.

They never left Long Island.

 

[stempniaksen]

- He's not spending the "bare minimum", Ottawa is in the top third of the league re payroll for players

Cap =/= Money spent

 

[BonkTastic]

So an owner of a Pro Sports team, being asked if he has any intention of selling his team .............. is the SAME thing, in your mind, as the Prime Suspect in and double homicide being asked if he did it.

Dude. Are you for real right now?

His point was just that people sometimes don't tell the truth. He's not saying that Melnyk's public statements are in any way ethically, morally or criminally equivalent to a double homicide, he's just using a high-profile (and therefore easily recognizable) example of a time when a human being lied about a thing once upon a time, as humans occasionally do.

Calm the hell down, jeez.

 

[Fandlauer]

Ottawa and Calgary twitch uncomfortably as U.S.-based billionaires grow fond of the NHL

Meh, at this point, if they're gonna move then so be it. I'm not going to be held hostage by a Scumbag like Eugene Melnyk.

If the NHL doesn't want the opportunity to develop Lebreton, then sayonara NHL. I stopped watching the NFL completely when the Chargers left and this will be no different. It's not like we are going to ever win anything with Melnyk as the owner anyway, although I'm sure you think he's still committed to bringing a cup to Ottawa because that's what he said several years ago right? He's going to bring a cup to Ottawa, spend when the time is right, slash everything to the bare bone, cut player salary, develop Lebreton, not develop Lebreton, and move the team.

 

[Tnuoc Alucard]

Cap =/= Money spent

Ottawa Senators - CapFriendly - NHL Salary Caps

 

[Grizwald]

- He's not spending the "bare minimum", Ottawa is in the top third of the league re payroll for players

I don't believe the issue is with Melnyk and his spending on players' salaries. The issue is with Melnyk running an unprofessional organization and with his character, of which he has none. Melnyk, though, isn't spending any money anywhere else in the organization, he himself called it bare-boned. Melnyk alone is driving his franchise into the ground and has only himself to blame.

 

[Micklebot]

So an owner of a Pro Sports team, being asked if he has any intention of selling his team .............. is the SAME thing, in your mind, as the Prime Suspect in and double homicide being asked if he did it.

In that in both cases they have incentive to say one thing regardless of whether it's true or not? Absolutely. You'd have to be pretty niaive to think that Melnyk always tells nothing but the truth, all the time. It would be a different issue all together if there were no suitors out there looking to buy, and he was potentially trying to draw interest, but, if he has any desire to sell right now, he's trying to push the price up, so he plays his cards close rather than come out and lose any leverage he has.

 

[Tnuoc Alucard]

Dude. Are you for real right now?

His point was just that people sometimes don't tell the truth. He's not saying that Melnyk's public statements are in any way ethically, morally or criminally equivalent to a double homicide, he's just using a high-profile (and therefore easily recognizable) example of a time when a human being lied about a thing once upon a time, as humans occasionally do.

Calm the hell down, jeez.

Can you, or anyone give me one logical reason for the Owner to lie about his intentions of whether or not he's selling the team?

 

[BatherSeason]

Can you, or anyone give me one logical reason for the Owner to lie about his intentions of whether or not he's selling the team?

Dude, there are literally three full threads that give you many logical reasons, you are just choosing to discredit anyone who doesn't share the same opinion as you. Maybe his intention isn't to sell, but when you embarrass the NHL, perhaps they force you out somehow.