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Under Eugene Melnyk, Senators have lost $94 million

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Old
08-17-2013, 11:53 AM
  #26
topshelfie
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Wouldn't our ticket prices have been much higher the last several years if the Sens were losing money?

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08-17-2013, 11:55 AM
  #27
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Quote:
Originally Posted by moz View Post
If you hover over your own link you'll see it directs to the Melnyk/Barry article, which is also the case on the Sun's website. But the article headline "Owner Eugene Melnyk denies claims the Ottawa Sens are hurting financially" is still prominently displayed on the site, so it's probably just a misattributed link rather than a retraction.
Ya, weird. Here is the article below for anyone that's interested.

---------------------------------------------

Reports that the Senators are in financial peril were shot down by both team owner Eugene Melnyk and the NHL Friday.

Amid rumours that the team needed the league to help pay bills last season came a website story quoting a highly-placed league source that the Ottawa franchise has been put on a "watch list." The story was vehemently refuted by Melnyk.

"No chance," he said in an e-mail to the Sun. "It's all B.S. coming from a random useless blogger. All this stuff is nonsense. Kinda annoying as well ... doing just fine thank you very much!"

Earlier in the day, the website hockeybuzz.com reported that there has been concern from league about the Senators' "escalating debt and the lenders." The source said trouble has been brewing since early 2012, and now there's "a fear the organization will be unable to make interest payments at some point, capitalizing the interest", adding that the league has encouraged Melnyk to seek investors."

NHL deputy commissioner Bill Daly also said the story didn't hold water Friday night.


... The rest of the article can be found here.





(MOD --> Sorry Rattler, HFBoards has a policy against posting full articles. I had to cut it in half, but linked the rest for you. Cheers!)


Last edited by BonkTastic: 08-17-2013 at 03:55 PM. Reason: posting full article
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Old
08-17-2013, 12:15 PM
  #28
DrEasy
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Even assuming that the lockout made it difficult to restructure the loan, wasn't the shortened season a great one financially? All the expensive players were injured (so insurance took care of their salaries presumably), attendance was great, and we made it to the second round.

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Old
08-17-2013, 12:43 PM
  #29
Ed Wood
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Pretty lame article. Nothing new really. The Yost stuff isn't proven or disproven in any way. I would expect bill Daley to deny there's a "watch list" whether or not one actually exists.

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08-17-2013, 02:39 PM
  #30
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Quote:
Originally Posted by Holdurbreathe View Post
One cannot just use other teams debt loads in comparison to the Senators, then make the huge jump in logic to suggest if those franchises can afford their debt Melnyk can afford $150M of debt based on appraised value. Affordability is based on the owner's ability to cover all expense, nothing else.
A slight hop maybe. I'm not trying to draw any sweeping conclusions. Just that the portion of the article that Fuhr provided stated that 50% debt of $300mm was "high by NHL standards." Looking at the only comparable numbers we have available to us I didn't think that was necessarily true.

Other factors are involved in Melnyk being able to meet the payments, sure, I believe it. The article also indicated Melnyk's commitment to continue covering the losses should they persist. People in the organization say it's manageable. Not much but his word passed on second hand. Something though. Probably as good as we're likely to get.

I can certainly see a scenario with Melnyk divesting, making way for deeper pockets, should he not be able to keep that up indefinitely.

Quote:
Originally Posted by Holdurbreathe View Post
While I agree the article did cover the increased expense due to Melnyk's inability to refinance, this is a one time occurrence and really doesn't provide any insight into the overall picture.
Right. A hiccup. Explains the belt-tightening over the year to an extent. The overall picture, who knows?

Quote:
Originally Posted by rattler280
Here is the article below for anyone that's interested...
Thank you rattler.

It's working for me now...http://www.ottawasun.com/2013/08/16/...t-negotiations

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Old
08-17-2013, 07:38 PM
  #31
Mika Zibanejad
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I have kept myself away from these boards for the last little while, I have finally learned to accept and ignore the financial situation of the team, and i will enjoy amazing hockey for the next 2 seasons, well see after that, but right now im pumped!!

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Old
08-18-2013, 11:14 AM
  #32
QuattroFTW
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Quote:
Originally Posted by topshelfie View Post
Wouldn't our ticket prices have been much higher the last several years if the Sens were losing money?
It wouldn't be smart given how fragile our fanbase can be in coming out to games. I'm sure he could get away with charging an extra $10 a ticket but if he started making 300 level seats $90 a game there would be a lot less people.

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Old
08-19-2013, 06:36 AM
  #33
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http://www.ottawacitizen.com/sports/...026/story.html

It’s not a bombshell that Melnyk used debt to finance his purchase of the Senators and the arena in 2003. Just because someone is worth $1.5 billion on paper doesn’t mean he has liquidity. And even if he did, he might not want to use it on a purchase if financing was available......

And since Melnyk bought the team at a fire-sale price, there was a good chance it would grow in value in the years ahead. Why tie up your capital in an appreciating asset when you can use the bank’s money instead?....

Further, although Melnyk appears to have lost $94 million over 10 years, much of that consists of interest payments on the debt. So it doesn’t suggest the team isn’t viable. And the combined value of the franchise and the arena has more than doubled over that time period, to an estimated $300 million.
.......

The Senators are a private business that does not have to disclose their financial results publicly. The fact that they’ve chosen to provide an unprecedented level of detail suggests they see benefit in demonstrating to the public that a professional hockey team is more of a community asset than a hugely profitable venture.

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08-19-2013, 08:33 AM
  #34
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Very nice comment by Sutcliffe.

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Old
08-19-2013, 02:39 PM
  #35
nanuuq
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Melnyk could raise the ticket prices to get more talented players, but he is trying to get a stable group of people who want to go to the games, and to increase season ticket holders.
As such he is holding the ticket prices down.. but do expect that as we need to resign our core to higher contracts, these prices WILL go up to finance the monetary requirements.

stolen from the main board:

Leafs- $124.69
Jets- $97.84
Canucks- $87.38
Oilers - $79.27
Canadians -$78.56
Capitals - $73.75
Rangers - $72.04
Flyers - $71.59
Penguins - $67.52
Flames - $66.35
Islanders - $65.21
Bruins - $64.39
Blackhawks - $62.88
Wild - $62.63
Kings - $61.36
Predators - $60.44
Panthers - $55.75
Redwings - $53.28
Sharks - $51.47
Devils - $48.06
Bluejackets - $47.95
Hurricanes - $ 47.89
Blues - $46.20
Sabres - $46.15
Senators - $42.09
Avalanche - $40.62
Ducks - $40.49
Coyotes - $40.32
Lightning - $38.12
Stars - $36.09

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Old
08-19-2013, 02:44 PM
  #36
Iggy77
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Someone has already pointed out that ticket prices are based on market demand not what the Sens feel like charging. Just because you raise ticket prices does not mean you will make more money as less people may show up.

Unless the Sens are incompetent, the Ottawa market is simply unable or unwilling to pay more for the current on-ice product and still have a sell out(or close to it). They make the most money at the current prices.

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Old
08-19-2013, 05:09 PM
  #37
The Fuhr
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Every other Canadian market is charging at least 66 dollars

Sad that hockey is not in demand in a Canadian market.

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Old
08-19-2013, 05:17 PM
  #38
Chip Chipperson
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The numbers from that report are wrong.

It says Ottawa charges 8.79 for parking and that programs are free, neither of which is true. It is also a joke that Florida is in the middle of the pack. A quick visit to their website shows otherwise. You can get seasons tickets for 7$ a game with free parking, jersey, and concert lol.

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Old
08-19-2013, 05:49 PM
  #39
pt_mck
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Quote:
Originally Posted by Iggy77 View Post
Someone has already pointed out that ticket prices are based on market demand not what the Sens feel like charging. Just because you raise ticket prices does not mean you will make more money as less people may show up.

Unless the Sens are incompetent, the Ottawa market is simply unable or unwilling to pay more for the current on-ice product and still have a sell out(or close to it). They make the most money at the current prices.
One thing keeping ticket prices down is the size of the arena. 20500 or so for a sellout?

How can they raise prices when there are always tickets available easily for non leaf/hab games. If the arena held firm at 18000 seats the demand would raise and ticket prices could rise.

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Old
08-19-2013, 06:00 PM
  #40
Indy on the Road
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Quote:
Originally Posted by The Great Below View Post
Every other Canadian market is charging at least 66 dollars

Sad that hockey is not in demand in a Canadian market.
Buy some tickets.

Support the team.

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Old
08-19-2013, 06:01 PM
  #41
Iggy77
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Quote:
Originally Posted by pt_mck View Post
One thing keeping ticket prices down is the size of the arena. 20500 or so for a sellout?

How can they raise prices when there are always tickets available easily for non leaf/hab games. If the arena held firm at 18000 seats the demand would raise and ticket prices could rise.
Yes it seems the arena capacity is too high for current demand in this city.

The only other way to increase demand is to improve the quality of the team on the ice which is what they've been doing.

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Old
08-19-2013, 07:13 PM
  #42
moz
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Quote:
Originally Posted by The Great Below View Post
Every other Canadian market is charging at least 66 dollars

Sad that hockey is not in demand in a Canadian market.
That's like saying "guess people don't want to buy houses in Ottawa, sad," because homes are cheaper in Ottawa than in Vancouver. Everything is market-specific.

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