Michael Andlauer named new owner of the Ottawa Senators
Hockey

Michael Andlauer Officially Named the Next Owner of the Sens

June 15, 2023
Devon Gallant

   Four weeks to the day since the final bids were submitted, the Senators organization has finally chosen the next owner of the franchise.

   A group led by Toronto billionaire Michael Andlauer has won the bid to purchase the Ottawa Senators, the club announced Tuesday morning. Andlauer’s group and the Senators Sports and Entertainment board of directors agreed in principle to a purchase of 90% and operational control of the club, pending approval from the NHL board of governors. Anna and Olivia Melnyk, the children of the late owner Eugene Melnyk, will retain 10% interest in the club through the family’s estate, while Andlauer will be selling his 10% minority stake he currently has in the Montreal Canadiens.

   “My family and I are very excited to be a part of the Ottawa Senators Hockey Club,” Andlauer said in a statement. “I believe that the Senators’ fanbase is one of the most passionate in the league and I’m excited to take the franchise’s success both on and off the ice to the next level. The short and long-term future of the team is incredibly bright, and I look forward to getting to know the team, the fanbase and the community.”

   Andlauer’s name was one of the first to surface back in November when the Senators officially hit the market. But he certainly didn’t receive the media push that other groups did throughout the process. The Remington group captured the interest of fans with the addition of Ryan Reynolds and his massive public presence. This in turn led to the remaining major bidders attempting to garner more public attention by adding celebrities themselves, highlighted by Neko Sparks addition of Snoop Dogg, Donovan Bailey, Russell Peters and various members of Dragon’s Den over the span of a few weeks.

   Andlauer remained relatively quiet, relying on his familiarity with the NHL board of governors and commissioner Gary Bettman. After the final bids were placed, Andlauer was seen as the “safe pick” given his previous history both within the NHL sphere and as a previous owner of both a successful AHL and OHL franchise. After the group led by Steve Apostolopoulos backed out due to frustrations over the length of the sale, Andlauer became the clear favourite to win the bid. Andlauer reportedly felt the true valuation of the club was closer to the $800 – $850 Million range, but it appears as though Galatioto Sports Partners – the New York firm that was placed in charge of the sale – were able to convince Andlauer to raise his bid enough to where everyone was happy with the final price. While the NHL was certainly looking to get the price up to the noteworthy $1 billion figure, the final price tag looks to be more in the $950 – $975 million dollar range. 

With numerous layers of legal red tape to navigate, it’s unlikely that the sale is fully closed until September.

Who is Michael Andlauer?

   Andlauer is, by all accounts, a true die hard hockey fan. He continued to play goalie in a men’s beer league in the early 2000’s in Hamilton, which serendipitously helped him stumble into owning a stake in the Montreal Canadiens.

   According to a feature on Andlauer in 2021 by the Hamilton Spectator, Andlauer required hip surgery to repair damage that was a result of the rigors of playing the position in 2009. When he went to a specialty clinic in Colorado for the procedure, he met then-Canadiens owner George Gillett. The men reconnected a short while later, and when Gillett sold the Habs, he tabbed Andlauer to be one of the minority owners.

   At the time Andlauer was already the owner of the Hamilton Bulldogs of the AHL, but he sold the franchise to the Canadiens, agreeing instead to purchase the Belleville Bulldogs of the OHL and bring them to Hamilton. He’s had success with both franchises, and has gained a reputation across the hockey world as a passionate, down to earth owner whose number one goal is the success of the franchise. 

   Andlauer accumulated his fortune through the transportation industry. He has more than 3 decades of experience, founding ATS – Andlauer Transportation Services – in the early 90’s. The company now operates under the name ATS Healthcare. In December, Andlauer’s company announced he had raised $86.6 million by selling shares in the Andlauer Healthcare Group, a move that many assumed at the time was to position himself to purchase the Ottawa Senators.

With the French-Canadian businessman set to assume control of the Senators, he’ll also need to begin the process of selling his stake in the Montreal Canadiens. Sportskeeda estimates Andlauer’s personal networth to be roughly $1.1B, with nearly 35 companies under his control. According to reports, Andlauer intends to move to Ottawa and make it his permanent residence.

While this will be a nice change of pace from what Sens fans became accustomed to under their previous Barbados dwelling owner, it also serves personal purposes as well.

Much of the narrative during the sales process was focused on the team itself, rather than the motives behind why the ownership groups were interested in the club. While Andlauer is a die hard hockey fan, he’s also a shrewd businessman. Having the opportunity to redevelop the downtown core of the nation’s capital, in such proximity to parliament cannot be overlooked.

While many will be quick to point out the age old dilemma of the club being unable to offer incentives to government employees, it’s naive to think that there aren’t other quid pro quo arrangements that can be made behind closed doors.

With healthcare being one of the most heavily regulated industries in the country, and increased concerns about climate change and it’s environmental effects, someone as heavily invested in the medical and transportation fields as Andlauer is would be well served to have a residence in close proximity policy makers.

Ryan Reynolds’ involvement can be partially attributed to the inflated sale price of the franchise, but for those with an eye on the bigger picture, the fact that it was an Ottawa based club, largely drove up the final sale figure as well. Whether it was Sportico, Forbes, or other third party evaluators, the final sale price of the team will ultimately be 1.5-2x what most experts valued the team at. The process was reminiscent of Jeff Bezos’ interest in the Washington Commanders.

No one will confuse the New Mexico native for a football fan anytime soon, let alone one of such a long suffering franchise. However, given its proximity to the seats of power in the US, it was easy to see why the billionaire Amazon founder would have an interest in the club.

What fans in Ottawa can take solace in however, is that throughout his career Andlauer has been a staunch supporter of hockey. So while the off-ice aspect played a role in driving up the price between the groups, by all accounts, the Sens were likely sold to the person who cared the most about the on-ice product.

What’s Next For The Front Office?

   While the sale process is far from complete – the board for both the Senators and the NHL need to vote to approve, as well as the lawyers who will certainly take their time working out the finer points of the sale – there’s a lot to be done with the franchise, and very little time to get things organized. The NHL draft is in 2 weeks, and while the Sens currently do not have a pick in the first 3 rounds, the draft is where most major deals get done. Andlauer will have to work quickly to decide the future of the current Sens front office and coaching staff.

  One name that has been continually linked to Andlauer is Steve Staios. Staios is currently holding the role of special advisor to hockey operations under Ken Holland in Edmonton. But the former NHL defenseman served as president and general manager of Andlauer’s Hamilton Bulldogs. Pierre Doirion has been the GM of the Sens since 2016, and has been with the club since 2007. However, after the 6th season of the team not making the playoffs, there are questions as to whether he will be retained by the new ownership group.

   Regardless if Staios is involved, Andlauer has positioned himself to win over fans by bringing in people who have strong local connections. A part of his group reportedly involves up to 20 local investors, including the Malholtra brothers (owners of Claridge Homes) and Farm Boy partner and special advisor Jeff York. Another notable name that would certainly earn the new owner points with the fanbase is Daniel Alfredsson. Alfie made sure to remain neutral during the sale process, and it seems like now is the perfect time to bring the former captain back into the fold in a hockey ops capacity. Back in February, Alfredsson stated very clearly that he wanted to have a voice in the direction of the franchise on the ice.

   “I want to wait to see what happens, but I would love to have a meaningful role in hockey ops. That was my feeling in the summer and I feel that even more so now,” Alfredsson said. “I feel I have a lot to contribute in that role, so that’s kind of what I’m hoping. We’ll see what happens with the new ownership, but that’s my dream job.”

   Andlauer is also close with former Senators president Cyril Leeder, and has continually been in contact with him while he learns about the Senators market. Leeder was a key figure in the first round of negotiations between the teams and the NCC, the group in charge of the potential sale of the land at Lebreton Flats before the deal fell apart. The 63 year old could still play a prominent role in any new arena developments in the future. 

DJ Smith’s Future

   From a coaching perspective, there are plenty of questions surrounding D.J. Smith and his future with the club. However it would appear as though the coach’s tenure is directly tied to that of current GM Pierre Dorion. According to Bruce Garrioch, if Dorion remains with the team, he’ll be heavily advocating for Smith to remain as well.

   Andlauer has already been linked to Patrick Roy, the hall of fame goaltender who just stepped down as head coach and GM of the Quebec Remparts, as well as Ottawa resident Claude Julien, who is reportedly looking to get back into the NHL.

But before anyone assumes that Roy stepping down from his post in the QMJHL automatically means that there is some sort of back room deal in place to join the Sens, it’s worth noting that the former Hab indicated last summer that the 2022-23 season would be his last with the Remparts. A statement that was made prior to the club being officially put up for sale.

That’s not to say that he won’t take a run at the position should the team move on from Smith, but it’s not a direct correlation. Roy has already expressed interest in working with Ottawa in the past, and was the final interview for the Sens head coaching vacancy in 2019 after Guy Boucher was let go.

What Does The Sale Mean For DeBrincat?

Alex DeBrincat made it known that he wouldn’t make a decision on his long term future with the club until after the ownership saga came to a close. With that chapter mercifully wrapping up this week, attention now shifts towards the 25 year old winger.

There have been conflicting reports in the Ottawa media of late as to whether the Michigan native wants to sign on long term with the club. Depending on which source you believe, DeBrincat could want out because he doesn’t like the coach, systems, or simply doesn’t want to play longterm in Canada.

Regardless, it would appear as though the Sens will now take the former Blackhawk to arbitration in an effort to reduce his salary by up to 15%. Coming off a down year (27G, 39A for 66pts), Ottawa will hope to lower the pending RFA’s $9M qualifying offer to give them as many options as possible heading into the season.

While it seems increasingly likely that DeBrincat will ultimately be dealt, at a minimum taking him to arbitration could afford the team the luxury of retaining his services for another year and attempting to sway him into a long term deal following the 2023-24 campaign. Unlikely as it may be, replacing a top-6 forward with 40G ability isn’t easily done at the NHL level. Let alone in a year where the expectations are “playoffs or bust”.

   While Eugene Melynk saved the franchise from bankruptcy and potential relocation, his tenure as owner of the Sens was tumultuous at best. The purchase of the team by the Andlauer group promises to bring more security to the franchise and it’s fans, and with the product on the ice looking like it’s ready to take the next step, having an owner that’s willing to spend money behind the scenes to improve the club as a whole is much needed for the organization. There’s still plenty of work to be done, but with this announcement, the Sens and their fans can finally move on and look towards the future of the team.

-Devon Gallant

Twitter: @DevGallant

-Kyle Skinner

Twitter: @JKyleSkinner