According to reports, no less than 20 potential buyers have expressed interest in purchasing the Ottawa Senators in the weeks following the announcement that the club would be put up for sale.
As a condition of the sale, the new owners must agree to keep the club in Ottawa, however that hasn’t deterred potential investors from doing their due diligence on an acquisition.
Actor Ryan Reynolds made national headlines in early November when it was revealed that he had an interest in becoming a minority owner of the team. In the days since, other A-List celebrities such as Sandra Oh, and musician The Weeknd have also expressed a desire to become part of an ownership group.
While the starpower is certainly an attractive addition to any investment group, any such partnerships would involve exceptionally small portions of the actual ownership stake in the team.
With Sportico’s valuation of $655M for the club being deemed “conservative” by most industry insiders, many expect the final sale price to land somewhere in the neighbourhood of $800M-$1B when all is said and done. A notion seeming more and more likely as additional parties enter the bidding process.
Instead it will be deep pocketed investors from the business world who ultimately pony up the lion’s share of funding in a deal with Anna & Olivia Melnyk. Amongst those rumoured to be putting together consortiums are Farmboy CEO Jeff York & Toronto Star co-owner Paul Rivett, and Michael Andlauer and Rocco Tullio who own the Hamilton Bulldogs and Oshawa Generals.
Also doing their homework on a theoretical purchase are Paul and Michael Paletta of Alinea Group Holdings, and Neil Malhotra of Claridge Homes in Ottawa.
Senators legend Daniel Alfredsson has long made it known that if the team were ever put up for sale he would jump at the opportunity to become part of an ownership group. However given the substantial price tag, Alfie can afford to bide his time and see who emerges as the frontrunner in a sale before joining a group in an official capacity.
While the final price will fall well short of recent professional sports club figures such as Chelsea FC or the Denver Broncos, a large factor in the final numbers is the preferred bidder status at LeBreton Flats that the organization was awarded.
“The real estate component makes it an attractive option,” a league source told Bruce Garrioch. “If this was just a team in Kanata, I don’t think there’d be this much interest.”
According to reports, league executives have made it known they’d like an update as to where negotiations stand with potential ownership groups by mid-January. At the moment, those who have expressed a genuine interest in purchasing the club are signing non-disclosure agreements in order to review the Senators recent financial statements.
When Eugene Melnyk purchased the Ottawa franchise out of bankruptcy for $130M in 2003, he was reportedly the only bidder who contacted the league with a desire to keep the club in Ottawa. Several US based groups expressed interest in buying the Sens, but each of them did so with the understanding that a sale would be contingent on moving the team to the states.
Fast forward to 2022 and it’s a stark contrast in the level of interest regarding the club, with each suitor also being acutely aware that the team isn’t going anywhere anytime soon.
“Everybody knows what the rules of the game are, which is this team is staying in Ottawa and you’re looking to purchase this team and operating in Ottawa,” Daly said following the GM’s meetings in Toronto Nov. 15th.
Because a lease deal is required for the LeBreton project by September of 2023, it’s more probable than not that an announcement will be made regarding new ownership before the season is complete.
-Kyle Skinner
Twitter: @JKyleSkinner