[News] Senators exploring sale of team

[speede5]

Originally Posted by brocoli

I'm hoping that no matter what with this deal, Snoop is able to find a footing within the NHL. His idea to improve grassroots hockey and grow the game for minority players is a large, untapped market within the US that could do wonders for the game with the funding he could provide.
Add in that he seems to love the game and has a personality to be out there for it. I'm pulling for him somewhere within NHL ownership

How do you grow the sport at a grassroots level in a world where parents are spending tens of thousands of dollars a year on their kids hockey. The sport is becoming more elitist by the year.

[hjerk]

Originally Posted by sureLoss

Reynolds is out per ESPN. Reason is not given, but article says that Reynold's group asked for an exclusive window to finish the deal, but was denied.

https://twitter.com/user/status/1656768096630128642

Maybe now Deadpool can buy the Flames instead

[FlamesAddiction]

Originally Posted by hjerk

Maybe now Deadpool can buy the Flames instead

He does have Alberta heritage....

[Cleveland Steam Whistle]

Originally Posted by Sidney Crosby's Hat

And how's that working out?

The weird thing is, the answer to that question is actually, it's working out just fine, in fact good.

Very strange how Edwards has somehow been vaulted to evil status by Flames fans for literally no reason at all. Damn you Edwards for being committed to keeping NHL hockey in Calgary and investing healthily in this team year over year, damn you!

[liamenator]

For those following this: today is the deadline for binding bids. Garrioch reported that groups led by Andlauer, the Kimel brothers (feat. The Weeknd), and Neko Sparks (feat. Snoop) have or will submit bids. No word yet on the other three.

It was reported today that the Sparks group has brought a number of First Nation communities into the fold: https://www.sportsnet.ca/nhl/article...e-in-senators/

There has also been some chatter that Reynolds' silence since the Remington group walked away suggests he may yet become involved. But I think this is unlikely.

[liamenator]

Update: four bids came in, one of which reached $1-billion USD. They are: Andlauer, Kimel bros., Sparks, and Steve Apostolopoulos. The latter recently bid $6B for the Washington Commanders but lost out. No word which of the bids hit $1B.


There was a report by Front Office Sports that there might be an issue with one of the bids. I'm speculating, but given that the Sparks group has by far the most partners and moving parts, it would not surprise me if it was that one.


Reynolds met with both Andlauer and the Kimels in the Fall to discuss a possible partnership before he went with Remington. There's a chance they circle back on that should one of those two win the bid.

[Kipper_3434]

Can someone please explain to me what about the Sens is worth $1 000 000 000? Is their brand somehow stronger than I imagined? Though maybe 600-700m

[liamenator]

Originally Posted by Kipper_3434

Can someone please explain to me what about the Sens is worth $1 000 000 000? Is their brand somehow stronger than I imagined? Though maybe 600-700m

Land. With the Sens come several lucrative development sites for a downtown arena, plus like 70 acres in Kanata where the current rinks sits.

Goodwill. Land deals with sports teams at the centre help investors and developers cultivate public support for their projects. (In Ottawa, groups have been trying to develop LeBreton flats for 20+ years).

Scarcity. The last Canadian NHL team sold in 2012.

Status. Billionaires increasingly want into the pro sports club.

Financialization. Franchises are assets that can be leveraged to the benefit of other investments and offer opportunities for, ahem, "creative" tax scenarios.

Intellectual property. Reynolds and McElhenney showed with Wrexham how sports teams can be monetized in ways far beyond gate receipts and jersey sales.

[Snuffleupagus]

Originally Posted by liamenator

Update: four bids came in, one of which reached $1-billion USD. They are: Andlauer, Kimel bros., Sparks, and Steve Apostolopoulos. The latter recently bid $6B for the Washington Commanders but lost out. No word which of the bids hit $1B.


There was a report by Front Office Sports that there might be an issue with one of the bids. I'm speculating, but given that the Sparks group has by far the most partners and moving parts, it would not surprise me if it was that one.


Reynolds met with both Andlauer and the Kimels in the Fall to discuss a possible partnership before he went with Remington. There's a chance they circle back on that should one of those two win the bid.

Unless it was an extremely small stake I highly doubt Andlauer would be interested in a partnership with Reynolds, he already has Rocco Tullio in his pocket and that's more likely to do with the real estate development of Lebreton flats than anything, if Andlauer buys the team he will want 70%+ of the team.

[getbak]

I think any of these celebrity investments will always be small stakes. They're more about the name factor than actual control over the team.

Reynolds' net worth is estimated to be about $350 million and Snoop's is about $150 million. That's a lot of money, but it's not NHL owner money.

[liamenator]

Originally Posted by Snuffleupagus

Unless it was an extremely small stake I highly doubt Andlauer would be interested in a partnership with Reynolds, he already has Rocco Tullio in his pocket and that's more likely to do with the real estate development of Lebreton flats than anything, if Andlauer buys the team he will want 70%+ of the team.

It would probably be 10% or less, which is probably not much less than what his stake would have been with Remington, and I am almost certain that each of the groups would bring him on board if put their bid over the top.

In fact, that was the advice Bettman & the league gave Reynolds in the Fall when he expressed interest. They told him to hang back and that they'd facilitate his ability to join whatever group emerged from the bidding process. This is what Jeff York & his group of local investors are doing and it looks like they'll have a ~10% stake no matter who wins.

Really, Reynolds bungled his own chances at this by allowing himself to be wooed by Chris Bratty and Remington. That initial mistake was compounded by the group's atrocious tactical approach. Their media blitz created a lot of public support for their group but annoyed the league, and it didn't push the league/GSP/Sens board to accelerate or alter the sale process. Then, instead of hanging back and letting it play out, they tried strong-arm tactics that Bettman and the NHL hate -- leaking the $1B valuation, demanding a 30-day window of exclusivity, then very publicly announcing they are walking away.

Meanwhile, most other groups have read the room correctly and are following the NHL's instructions not to negotiate publicly. Sparks' group has used the media a bit through Snoop, but it's been mostly positive and hopeful rather than pushy and manipulative.

Maybe now Reynolds has finally listened and is waiting in the wings, but it's equally possible that he's squandered whatever goodwill and support he had in the league office and won't be brought back in.

[mile]

https://twitter.com/user/status/1667188283250556930

[sureLoss]

Feels like you could do a Succession type TV show about the Ottawa Senators.

[getbak]

That sounds like Apostolopoulos is trying to get things moving rather than actually pulling out.

[bluejays]

I think a few commentators talked about the complexity of a deal. I imagine there is financing involved so banks need to check out AML aspects, and other number crunching to go with it. Then lawyers looking over the paperwork and stuff. Plus if it’s crown land involved look up why the Jays couldn’t redo skydome as originally intended. It’s complex.

[liamenator]

Some updates on this saga from around Ottawa:

• Bruce Garrioch reporting that Andlauer's group is the front-runner, but the Kimels are still right there, and everyone is getting impatient with the board and the estate.

• The league finally appears to be pushing hard to get this done. There's a lot at stake for Bettman et al. given that a $1B+ sale of the Sens will reset the valuation table for all NHL franchises. So he's endured more BS than usual around this sale, but it seems he's reached his limit. League leaks to Garrioch have taken on a more aggressive tone over the last couple of days.

• Steve Apostolopoulos had the highest and "cleanest" bid ($1B) but pulled out amid frustrations with the pace and tenor of negotiations. Apparently conditions around the Melnyk sisters keeping 10% became increasingly irritating (TSN's Shawn Simpson tweeted some details that the board was asking that the sisters be insulated from losses or cash calls, that some of their back taxes be paid, etc.).

• There's a chance Apostolopoulos could be drawn back in, but seems unlikely.

• The Sparks-Snoop bid is technically still in, but only as a fall back. Tbh, I am surprised they're allowing their bid to be so clearly used as a pawn in negotiations.

• I wrote a short piece for The Conversation last month about changing dynamics in sports ownership that was inspired, in part, by some of the conversations in this thread: https://theconversation.com/the-otta...r-power-205799

[sureLoss]

per Garrioch the estate is closing on a sale to a preferred bidder in the next few days

https://twitter.com/user/status/1668391023880314880

[sureLoss]

Michael Andlauer is the new owner of the Senators pending BOG approval. Deal has been reached in principle.

https://twitter.com/user/status/1668603556251815936

[marsplasticeraser]

Originally Posted by Cleveland Steam Whistle

The weird thing is, the answer to that question is actually, it's working out just fine, in fact good.

Very strange how Edwards has somehow been vaulted to evil status by Flames fans for literally no reason at all. Damn you Edwards for being committed to keeping NHL hockey in Calgary and investing healthily in this team year over year, damn you!

The flames made $41 million in 2022. He is not a benevolent owner. He is a lazy owner. There are a ton of lazy business owners.

For Murray Edwards he puts no effort into a business that produces substantial, risk free operating income every year.

He is a terrible owner because he doesn’t care about the on-ice or off-ice product.

[sureLoss]

https://twitter.com/user/status/1668610373333704705

https://twitter.com/user/status/1668621826799583239