NEXT WEEK COULD BE KEY FOR SENATORS SALE NEWS
The highly anticipated upcoming sale of the Ottawa Senators quite possibly has escalated from backroom whispers to a real-world move.
As the NHL'S board of governors prepare to receive a short update during their meetings Monday and Tuesday in Palm Beach, Fla., Michael Andlauer, a Toronto businessman, freed up major capital this week in what could be the first financial step of a bid to purchase the Ottawa franchise.
The Toronto billionaire, who owns the OHL'S Hamilton Bulldogs, raised $86.6 million in cash by selling off 1.76 million shares in the Andlauer Healthcare Group. The company, which owns transport and logistics companies in Canada, announced the transaction Wednesday.
He won't have direct access to the money because the proceeds of the sale of shares are going to Andlauer Management Group, but this could signal Andlauer is positioning himself to make his bid for the Senators through his parent company.
At this point, it's hard to tell — but a knowledgeable league insider advised Thursday to be careful in evaluating this move.
“This is a move to give him more capital,” the insider told this newspaper. “He needs equity (to make a bid). I'm not sure what he's going to do with these proceeds, but maybe AMG will be the bidder. He can't access that money unless he borrows it or there's a dividend paid out.”
We also know Andlauer isn't alone in this venture. There is talk in league circles that he's taking on partners, including Oshawa General owners Rocco Tullio, and there's talk he's also brought Hamilton-based Allinea Group Holdings into the fold.
The organization has investments in real estate development, meat packing and the entertainment industry along with neighbourhoods in Halton and Hamilton. The company is run by CEO Paul Paletta and his brother, vice-president Michael Paletta.
A representative of Allinea told this newspaper two weeks ago it was studying the idea of a bid.
Andlauer, a part-owner of the Montreal Canadiens, is considered one of the front-runners for the franchise along with Toronto real estate developers Jeffrey and Michael Kimel, who also have been aggressive in their pursuit of the Senators.
Sources say Andlauer is trying to sell off his 20 per cent share of the Habs and there's talk he may be trying to get Andre Desmarais, the CEO of Montreal-based Power Corp., to become a partner in the historic franchise. Desmarais has been mentioned as a bidder for the Senators and made an offer to late owner Eugene Melnyk several years ago, but the family might have more interest in a partnership with Geoff Molson and the Habs.
If that's not enough, there's another twist to this story. Has a mystery group entered the picture to purchase the Senators? That's what this newspaper has been told.
A league source said this week there is a Canadian-based group interested in making a serious pitch for the Senators that hasn't been mentioned publicly. We're told the company has the ability to make this happen, has solid backing and is 100 per cent committed to keeping this team in Ottawa. We've been told the work they've done on their bid is comprehensive.
“They haven't been mentioned (in the media) and I think they can get it done,” a league source said, speaking on the condition of anonymity.
After signing non-disclosure agreements with Galatioto
Sports Partners, a banker hired by the Melnyk family to run the sale, interested parties have been granted access to a website to get a look at the Senators' finances.
NHL commissioner Gary Bettman and deputy commissioner Bill Daly will provide an update on where the process of the sale is at when they sit down with the board of governors next week.
Though representatives for more than 20 groups interested in purchasing the Senators have reached out to the New Yorkbased banker, the reality is there won't be nearly that many serious bids. Ideally, the NHL would like to know by mid-january which is the best option. Groups that have contacted Galatioto are being vetted by the league to make sure they have the resources to make this transaction.
Not only must the buyers be willing to purchase the Senators and the Canadian Tire Centre, they also have to commit to keeping the team in Ottawa and building a new rink at Lebreton Flats.
A league executive told this newspaper this transaction could easily be in the $2 billion range by the time all the paperwork is signed and there aren't many people who can go this project alone. That's why several groups that have studied purchasing the franchise and building at Lebreton are discussing the possibility of teaming up to try to make this a reality because this may be too big for one buyer.
Part of the job of the new owner will be to engage the federal, provincial and local governments to play a role in the arena project with funding.