GARRIOCH: Toronto investors have expressed interest in buying Senators

Content of the article

Potential bidders have already thrown their names in the ring to buy the Ottawa Senators.

Content of the article

League sources say multiple groups will be interested in buying the Senators once they are officially put up for sale by Anna and Olivia Melnyk in the next month.

Content of the article

The family are expected to keep an inheritance out of respect for their late father Eugene Melnyk, who died in March after a long illness.

Content of the article

While it will likely be a month before New York sports banker Galatioti Sports Partners signs final documents on the Senators and then begins speaking formally to potential suitors, a league executive told this newspaper “that there will be several groups” who will make a pitch.

NHL Commissioner Gary Bettman may already have someone in mind, but the organization needs to go through the due diligence process and make sure there’s someone who’s willing to put their money in his mouth once he expressed interest.

Content of the article

Here are a few names this newspaper thinks you should watch in the coming months:

Sources say Jeffrey and Michael Kimel, who owned a minority stake in the Pittsburgh Penguins before selling them to Fenway Sports Group last year, have already expressed an interest in buying the Senators and becoming part of the LeBreton Flats draft.

The Toronto brothers sit on the board of directors of Harlo Financial Group. The company is invested in real estate, wealth management and the entertainment industry. Michael Kimel is the head of the Chase Hospitality Group.

Michael Kimel recently founded OverActive Media, which invests in esports, and he also served on the Penguins’ management committee.

The Kimel family has the financial wherewithal to make this a reality and the knowledge to help build LeBreton, but they are not alone on this front, which is why there is a bidding process.

Content of the article

Another speculated name is Toronto billionaire Michael Andlauer.

The owner of the OHL’s Hamilton Bulldogs also owns a 20% stake in the Montreal Canadiens. There has always been speculation that he wants a majority stake in his own NHL team. He is also highly respected by Bettman and Deputy Commissioner Bill Daly.

The owner of the Andlauer Group, which owns transportation and logistics companies in Canada, may have kicked the Ottawa franchise in the past.

Of course, billionaire André Desmarais of Montreal-based Power Corp, who had a connection with the other group bidding for the LeBreton Flats in 2016, could also dip his toe in the water.

He is close friends with Bettman and has previously expressed an interest in buying the Senators.

Content of the article

While we’ve heard of groups being interested locally, those familiar with the inner workings of the league don’t believe someone based in Ottawa has the ability to make a deal of this size on their own, which means that he should be part of a larger group.

It will be a massive transaction that could be between $700 million and $1 billion (all figures are US) once the deal closes. The Penguins recently sold for $900 million and the Nashville Predators are set to sell for $775 million.

You are going to hear a lot of speculation about potential local buyers in the months to come. While Minto’s Roger Greenberg has publicly stated that he would like to be part of a group to buy the team, he will have to be one with a lot of money behind it.

Content of the article

A league executive told the newspaper Wednesday that he believes the Senators’ next owner will either be based in Toronto or in the United States. Bettman wants to keep this team in Ottawa, especially with the potential for a downtown arena on the horizon.

Why is this happening now?

Time is running out on the 15 month window to get a lease in place at LeBreton Flats. Even if the Melnyk family wanted to retain ownership of the franchise, they would have to bring in a partner to help finance the new rink located 10 minutes west of downtown.

A new owner could also come from the group of partners involved in LeBreton’s bid. These include Sterling Project Development, Populous, Tipping Point Sports and Live Nation.

Content of the article

Making this decision now will allow the new owner to participate in the negotiation process with the National Capital Commission before it is completed. Anthony LeBlanc, president of club business operations, and Erin Crowe, chief financial officer, continue to manage those talks.

It will be business as usual for the front office as work must continue with the countdown towards a September 2023 deadline to have a lease agreement in place with NCC officials.

As we noted in this space, newly elected mayor Mark Sutclliffe can expect a call from Crowe and LeBlanc regarding LeBreton’s candidacy. The city of Ottawa will play a role in the rink, and the Senators could model the project on Edmonton’s Ice District.

In this scenario, the city and the province of Alberta both helped fund the arena and the feeling is that Sutcliffe is at least willing to listen to this scenario.

Stay tuned, the next eight to ten months will be interesting.

bgarrioch@postmedia.com

Twitter.com/sungarrioch