View Single Post
Old
11-24-2004, 11:29 PM
  #56
thinkwild
Veni Vidi Toga
 
thinkwild's Avatar
 
Join Date: Jul 2003
Location: Ottawa
Country: Canada
Posts: 8,546
vCash: 500
Quote:
Originally Posted by me2
The article reported the Bryden owned the rink and the Covanta was the primary lender on the rink.
... selective snipping ...
I guess you really do see what you want. Those are some interesting links you provided. But I got something quite different out of them than you seemed to.

Quote:
If it's approved by creditors at the end of this month, the measure will relieve Bryden of about $59 million in total debt, all of which he says can be traced back to direct loans or loan guarantees he made to prop up the hockey team and the Corel Centre.
Bryden had $59 mil of debt then. $50mil for the franchise? And he will settle for $600k

Quote:
During the decade he owned the team, Bryden and a collection of junior partners pumped millions into keeping it financially afloat.

Their efforts were always hampered by a massive debt of more than $350 million for the team and the arena
The massive debt yes. $350mil, of which $59 mil was Brydens?

Bryden: Deal Maker extraordinaire
Quote:
Combined, the Senators and arena owe close to $500 million to secured creditors alone.
Combined, the tax shelter was losing money. Surprise, surprise.

Quote:
Bryden has a genius for making big, complicated deals come together. He knows how to work business laws to his favour and is exceptional at convincing banks to lend his enterprises millions and millions of dollars.

But he's also left a trail of failed businesses that have crumbled under the weight of their debts

By 1988, Bryden was worth $32 million, according to a court document.
Shortly after that it became apparent he was in over his head. In 1991, his personal finance company, Kinburn Corporation, collapsed under $830 million of debt.

"Because Rod is a big fan of debt, he had built an empire that was heavily leveraged," according to John Owens, who has worked closely with Bryden over the years.
Kinburn was even worse than the Sens it seems. Just a business deal. People get hurt, but lowering salaries isnt the issue.


This next one was an interesting paragraph, I didnt know these numbers
Quote:
After finally securing a mortgage for $170 million US in 1994, he had to hire a U.S. entertainment firm to build the arena. As part of the deal, the Senators gave up 90 per cent of the profits from corporate suites, plus a percentage of food and parking revenues. It was a 30-year contract for the team, and to break it would cost $200 million.

In addition, the hockey team was paying an extraordinary amount of rent, $600,000 annually for executive and administrative offices at the arena.
"We [the original partners] had to roll our eyes at that," says original investor Don Puccini, "because [for that] you could probably rent an entire office building in downtown Ottawa, or somewhere at Bloor and Yonge in Toronto. That sort of got us thinking, there's more here than meets the eye. "

And that's part of Rod Bryden's style. He proudly makes his deals complicated.
Bryden the deal maker
Quote:
"Rod generated tens of millions of dollars in business for banks over his career, and he's not done yet I'm sure," says Owens. "I think the banks are smart enough to realize a deal that works; they want to be part of that. There were no firearms involved, everyone willingly participated, knew the risks and all of that, and very often it was the same banks. That's business."
Banks took the risk. Good business too.

thinkwild is offline