GARRIOCH: 'Multiple bidders' for the Senators as bankers study offers
Bruce Garrioch
Published Mar 09, 2023
The Ottawa Senators are a hot commodity.
League sources told Postmedia Thursday “multiple bidders” have entered proposals for purchasing the franchise, but wouldn’t confirm a report by Los Angeles-based Sportico that stated nine groups have entered bids to buy the Senators.
The report said some groups are willing to pay more than $900 million (all figures U.S.) for the club.
That figure isn’t exactly shocking. It’s consistent with NHL deputy commissioner Bill Daly recently stating that he felt the price tag would be in excess of $800 million and could be as high as $1 billion by the time the sale is completed.
Postmedia has only been able to confirm four of the bidders’ names, but has been told “there’s more than four.” We noted Wednesday there could be more bidders and if it’s as high as the reported nine, that would push up the asking price.
This newspaper also reported the first round of bids was due on the desk of New York-based banker Galatioto Sports Partners Monday. The expectation is the number will be culled to a shortlist as soon as possible and then the serious work will begin.
There’s not a lot of risk involved for the groups that have entered bids because these are just non-binding first bids to get bidders to the next round. The number of groups will be trimmed and then there will be another round as the work intensifies.
The league’s head office will work with GSP throughout this process to make sure the right ownership group is put in place with a commitment to keep the team in Ottawa.
NHL commissioner Gary Bettman stated last month more than 15 groups were permitted to look at the club’s financials and a copy of the memorandum of understanding with the National Capital Commission for a new rink at LeBreton Flats.
These talks have entered a delicate stage and the NHL’s head office would like to have the new owners in place by July 1. But don’t hold anyone to that date because those have always been moving targets throughout these talks.
A source told this newspaper Monday the league expected a “number of bids” but even those involved in the process didn’t believe there would be more than six. This is an attractive deal because there’s also the opportunity to build a new rink at LeBreton Flats.
Postmedia has confirmed that these four groups have made bids:
- The Remington Group: A Markham-based developer led by Christopher Bratty that includes Vancouver-born actor Ryan Reynolds as a partner. We’re led to believe they’ve got a pretty powerful group and strong bid. Reynolds and his Los Angeles-based production company Maximum Effort bring the element of exposure around the world the NHL badly craves. Bettman wants Reynolds involved.
- Michael Andlauer: The Toronto-based healthcare billionaire owns a portion of the Montreal Canadiens. Burlington billionaires Paul and Michael Paletta of Allinea Group Holdings have joined his group. Andlauer was also in discussions with Oshawa Generals owner Rocco Tullio about a possible partnership. It’s possible he entered this process on his own and is another one of the bidders.
- Jeffrey and Michael Kimel: The Toronto-based real estate magnates own the Harlo Financial group. They attempted to partner with Melnyk on the bid for LeBreton Flats, but he wanted to wait to see what happened. The Kimel family sold its share in the Pittsburgh Penguins in 2021 to the Fenway Sports Group.
- Neko Sparks: A Los Angeles-based producer, he’s put together a consortium and Postmedia reported Wednesday it’s believed he filed his group’s bid to GSP two weeks ago. Sources say Sparks has connections in the music industry and wants to make the building a destination for concerts.
- Other names Postmedia has noted that have expressed interest include: Neil Malhotra of Claridge Homes, André Desmarais of Powercorp., former Toronto Star executive Paul Rivet and Patrick Dovigi, the CEO of GFL Environmental. We haven’t been able to confirm whether any of those businesspeople made bids or are involved with other groups.
We’ve also reported Farm Boy CEO Jeff York has been seeking $5 million from local investors to partner with Andlauer at $100 million. He could shop that investment elsewhere if Andlauer’s bid is unsuccessful.
As this newspaper reported last month, once the first round of bidding is complete, the shortlisted buyers will do a site visit at Canadian Tire Centre and are expected to tour LeBreton Flats to look at the home of the club’s new rink.
It’s believed they’ll receive presentations from the chief financial officer Erin Crowe and president of business operations Anthony LeBlanc on where the franchise is headed, plus the memorandum of understanding the club signed with NCC.
It will be up to the new owners to get a lease in place with the NCC. Crowe, LeBlanc and Chris Phillips, the club’s VP of business, have been meeting with NCC officials weekly to keep the process moving along with a deadline to have a deal done by the fall.
https://ottawasun.com/sports/hockey/...s-study-offers
Prev
Linear Mode
