Well, yes and no in terms of paying too much. Compared to the "average" franchise, yes, if simply using a revenue multiplier. However, like they mentioned in the article, a whole bunch of other factors, especially control of media content played a large role in driving up the price and getting BCE/Thomson and Quebecor in the mix. When viewed from that perspective, the price is not excessive, provided the team continues on a stable course and exchange rates hold, it's hardly a poor investment.
Very interesting article.
Shows you that the real motive behind the purchase of the Canadiens francise was the appropriation of content, and to furthermore block Thompson and Péladeau of getting their hands on that content.
Not ALL the credit. The Canadian dollar deserves a lot of credit too.
ALL THE CREDIT lol nah but its just i remember when gillet first bought the team how much hate there was towards him because he was american and looking at everything he did for the team was just wowww
much respect to Mr.Gillet wish you all the best
Originally Posted by 7th Player
I still don't understand where the Molsons dished out the 140M$ up front though.
Not exactly pocket change.
Not surprising as mentioned content in the age of internet and cable tv is king. Habs are a household name across Canada etc. I still think it was a wise move that will pay off if they don't mess with the hockey side and let the hockey minds continue to build a strong team.
You have to keep in mind that Gillett's holding company may have defaulted on loans, but that doesn't make him personally liable or even mean that he doesn't have the money. Liverpool was unprofitable and he stopped servicing the loan but it doesn't mean he didn't have the means to do so. He is probably not in the same situation as an individual not paying off a bank loan since the loan was most likely made directly to the company, not to Gillett. Simply being sued or named in the lawsuit means nothing legally.
Businessmen investing in the sports world use far more leverage than cash. What makes the club even more of a winning investment for him is that Gillett bought the Canadiens with the assistance of a large loan from Molson.
Now, the question that I ask is this: considering the heavy debt load and the personal cash the Molsons put in the adventure, is it possible that they will NOT allow Gauthier to spend the extra cash now made available on the cap?
No, because they realize that playoff rounds equals money. Simple as that.
At some point, if the team is spending to the cap without any on-ice results, then yes I can imagine it being reconsidered. But until then, no. Especially not with a packed house in the stands each and every game.
Gee, you think the canadian dollar and the loyal fans had anything to do with it?
FYI, the building was not sold out prior to Gilett taking over the Habs and the lockout. The crazy marketing machine that the Habs are (under Gillett) brought back all those fans and even more. They have never been this popular.
Gotta give credit where credit is due. Fans don't appear out of thin air.
gillette was financially in trouble and the only way he would cough up his cash cow that is the canadiens (well, he turned them back into a cash cow anyway) was if someone had a substantial amount of money to dish out (i remember hearing 600 mill and being sure i never heard of a team being bought for so much..but also proud)
molsons realized last year they made a mistake selling away their prize posession, not realizing at the time in 01 all you needed was a decent president and general manager and scouting team to turn it all around, not some crazy rejean houle hell bent on drafting quebecer after quebecer after quebecer looking for the next lafleur or roy
they thought icing a team full of quebecers/french canadiens would keep people happy and in the stands but times changed, and the city just wanted a competitive team PERIOD regardless of where the talent came from, and Koivu was a BIG help with that and i thank him forever for that. (kovalev too <3)