A group led by Canadian businessman Michael Andlauer has reached an agreement to buy the Ottawa Senators from the NHL.
The team announced on Tuesday that Andlauer and his group will buy 90% of the club from the Melnyk family. The deal is reportedly worth nearly $1 billion, which is «more or less» what commissioner Gary Bettman expected the team in Canada’s capital to sell.
«Michael represents everything we could have hoped to find going into this process: a passionate owner who is committed to Ottawa,» Senators Chairman and Governor Sheldon Plener said in a statement announcing the sale. «We believe it is a momentous day for the National Capital Region.»
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View of an Ottawa Senators logo on a jersey worn by a team member in warm ups before an Ottawa Senators vs. Montreal Canadiens game on February 25, 2023, at the Bell Center in Montreal, QC (David Kirouac/Icon Sportswire via Getty Images)
Anna and Olivia Melnyk, daughters of late former owner Eugene Melnyk, will retain a 10% stake. Melnyk died of an undisclosed illness in March 2022 at age 62.
Andlauer, 57, is the founder and CEO of a healthcare group with transportation options for that sector and started a Toronto-based private equity firm. He owned the American Hockey League’s Hamilton Bulldogs from 2004 to 2015, then bought the Ontario Hockey League’s Belleville Bulls and moved them to Hamilton.
He has served as deputy governor of the rival Montreal Canadiens since buying a piece of the storied franchise in 2009. Andlauer must sell his stake in the Canadiens before the Senators purchase is complete, a process that also includes Board of Directors approval. of the NHL. Governors.
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Thomas Chabot #72 of the Ottawa Senators skates on the center ice logo during warm ups before a game against the Calgary Flames at the Canadian Tire Center on November 14, 2021 in Ottawa, Ontario, Canada. (André Ringuette/NHLI via Getty Images)
«I believe the Senators’ fan base is one of the most passionate in the league, and I’m excited to take the franchise’s success on and off the ice to the next level,» Andlauer said. «The short and long term future of the team is incredibly bright, and I look forward to getting to know the team, the fan base and the community.»
Forbes values the Senators at $800 million, ranked 24th out of 30 teams in the NHL.
«I’ve always felt like we’ve been undervalued, so this, to me, is just a statement that our franchises are more valuable than Forbes or Sportico or a lot of investment bankers have said,» Bettman said recently. «While people focus on the revenue side, the system that we have that gives every team a chance to compete is something that historically hasn’t given us enough credit in the value proposition.
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Ottawa Senators uniform display at the Hockey Hall of Fame Official Spirit of Hockey Store. This place is located inside Brookfield Place. (Roberto Machado Noa/LightRocket via Getty Images)
«Our competitive balance is extraordinary, and that should somehow equate to higher values. I think you’re starting to see that.»
The sale of the Senators drew a lot of interest, including competitive offers from movie star Ryan Reynolds, Canadian R&B singer The Weeknd, and rapper Snoop Dogg.
Instead, the team turned to Andlauer and the minority owners, who will now be tasked with finding a downtown site for a new arena to replace the suburban track that has been the home of the Senators since 1996.