Follow up on the Senators (***Corrected***)

It is being reported now that the Senators did not pay their players yesterday.TSN.ca and local papers are saying the players instead of a paycheque got a letter.Here is the update:

In lieu of payment, the players received a letter from majority owner Rod Bryden regarding the collapse of the franchise’s massive restructuring.

Sources told TSN that the players will be paid within two weeks or even over the next few days, but it is up to Bryden to find short-term financing to replace the tax shelter plan that was supposed to be in place for the team.

A Boston bank decided on Tuesday to not sign off on the plan, which was to be the first step in a two-prong approach to solidify the future of the economically challenged team. Part Two of the plan involved Long Island businessman Nelson Peltz investing heavily, but sources now suggest there is no telling if he’ll become an equity partner because his initial interest hinged on the shelter plan.

Sources also told TSN that the National Hockey League has no plans at this time to assume financial control or operation of the club since there is no imminent danger of not being able to operate for the 2002-2003 season.

There is, however, a dire need to acquire short-term refinancing that would allow the Senators to continue paying the players.

The team missed payroll Wednesday, sources said, because the dissolution of the tax shelter plan came late on Dec. 31.

www.tsn.ca

Things are even worse than first reported and it seems they are getting bad fast.Ownership has to take the fall here as they should have seen this coming.They should have traded players with big contracts just to have saved the club instead of restructuring.It might be time to consider contracting a few teams just to keep the product(the NHL) viable.But that might not happen.One solution would be to sell the team to Hamilton, who should have gotten them in the first place.It doesn’t help that they have what might be the worst lease in the NHL(next to the Pens).Also there is the location of the arena.It is out in the middle of nowhere.And then there is the whole off ramp fiasco.And not to mention the taxes that is killing them.Where most(maybe all) American teams don’t pay taxes the Canadian clubs do.And lots of them.The Sens need a real break to stick around!!

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I read an article posted on this site on the first that was supposed to be taken directly from the tsn website. later that night I was showing the article to a friend while on the tsn/nhl page and noticed some differences between what i read there and the version that was posted here. So i have copied the original and pasted it at the end of this post , i figured that everyone who didnt read the tsn version should get a chance to see that the figures as far as how much the sens owe, and how much they would be given werent as large as reported here, and that the line that stated that a source from the globe has learned that the sens will be out of money in a matter of weeks was not part of the original tsn article. anyways heres the real article.

“OTTAWA — A proposal to refinance the Ottawa Senators fell through, raising questions about the team’s financial health.

The deal was to involve the sale of the team by majority owner Rod Bryden to a limited partnership for $118.7 million.

The agreement would have given the Senators some badly needed cash and a better lease with the Corel Centre. The terms included injecting $26.7 million into the team and paying off a $9.1 million loan from the NHL.

“The transaction will not proceed,” Gordon Fox of Norfolk Capital Partners, which managed the limited partnership, told the Globe and Mail. “It’s a sad story for everyone.”

NHL spokesman Frank Brown confirmed to The Associated Press on Wednesday that the Senators were unable to complete the refinancing.

“We are working with the club to deal with that reality,” he said.

Bryden declined comment.

The website of TSN, a Canadian cable sports network, quoted unidentified sources as saying the players did not receive their paychecks as scheduled Wednesday. Instead, they got a letter from Bryden explaining the financial mess.

Senators spokesman Phil Legault refused comment when reached by the AP.

The Senators have lost money in each of the past three seasons, including $9.5 million in 2001-02. The team owes more than $101.7 million to a group of creditors and faces continuing cash shortfalls, documents show.

This is the second time in the last year that the refinancing has fallen apart. On Jan. 2, 2002, Bryden sold the team to the Norfolk partnership for $118.7 million. However, that deal fell apart when Covanta Energy Corp., a U.S. company that is a major lender to the team, filed for bankruptcy protection in April.

The Senators were formed in 1990 for a $50 million expansion fee and started play in 1992.”

Bishop

bishop7979


29 Responses to Follow up on the Senators (***Corrected***)

  1. Tradedude says:

    Ouch! I don’t want another Canadian team to go bye-bye.

    Damn!!!

  2. SabresFanB says:

    Isn’t the attendance really down in Ottowa. I mean, if there are no fans then why not move the team somewhere where there will be fans (Quebec). And what are the players thinking right now. They didn’t get paid!!!

  3. Johnny_Canuck says:

    man… that sucks. The team is doing so well too… this’ll be a huge distraction and we may see yet another Canadian team move to the states…

    majorly disappointing…

  4. Leaf_Expert says:

    Why doesn’t the league take all the profit from the Sabres and give it to the Sens……

    It obvious the Sabres have no chance in the League…might aswell.

  5. devodawg says:

    Actually attendance is down all over the NHL, but in Ottawa it is down versus same time last year. With that said, attendance in Ottawa is still much better than in Buffalo, Boston, or many other US cities. Problem isn’t attendance.

  6. wayne2 says:

    Whoever said they should have gone to Hamilton,screw you,they would have the same problem a little later anyways and at the time Ottawa deserved the team,and still do.If players request for money would be reasonable combined with reasonable rich owners(New York,havent you learned with sept 11 that your empire can collapse,Dallas,Detroit etc),maybe hockey would be viable in CANADA.

  7. mikster says:

    (New York,havent you learned with sept 11 that your empire can collapse)

    ugh????????????? Any building can.

  8. Tradedude says:

    Daniel Alfredsson had said that he was sure there would be an agreement within no time. Little too much confidence coming from Ottawa players.

    Quebec is a good place. I visited Quebec last February, 12 hr drive, and people down there just hated that there team, Nordiques, was lost, they were even more mad, that that team won the cup the very next season.

    Fans down there aren’t a fan of the Canadians or anything, there huge fans of the Avalanche. They’d do anything to bring them back. In most of the restaurants I visited they had posters of players in a Nordique uniform i.e. Sundin, Sakic, Nolan, etc.

    So yeah, Quebec in my opinion would be the best place to move them to. But for now, I think Ottawa will do something. i.e. lower price since there’s no fans for some God damn reason. Freeg, fans down there are stupid, there winning like every bloody game for crying out loud.

  9. Tradedude says:

    Daniel Alfredsson had said that he was sure there would be an agreement within no time. Little too much confidence coming from Ottawa players.

    Quebec is a good place. I visited Quebec last February, 12 hr drive, and people down there just hated that there team, Nordiques, was lost, they were even more mad, that that team won the cup the very next season.

    Fans down there aren’t a fan of the Canadians or anything, there huge fans of the Avalanche. They’d do anything to bring them back. In most of the restaurants I visited they had posters of players in a Nordique uniform i.e. Sundin, Sakic, Nolan, etc.

    So yeah, Quebec in my opinion would be the best place to move them to. But for now, I think Ottawa will do something. i.e. lower price since there’s no fans for some God damn reason. Freeg, fans down there are stupid, there winning like every bloody game for crying out loud.

  10. cwhockey says:

    I could be mistaken (and feel free to correct me if I’m wrong) but I believe that if the players aren’t paid in two/three weeks, they could actually declare themselves UFAs. Of course, its highly likely that the team will find a way to pay the players before then or an agreement reached that would prevent the players from declaring themselves free agents.

    But it’s pretty frightening when a situation like this is even remotely possible and the possibility of it brought up. Just wondering how far some teams will have to fall before the entire league (players, owners, commish) sees that a fundamental change is needed in its structure and operations.

  11. Tradedude says:

    What the hell! Profit to Buffalo, are you insane? Ottawa does not have the same problem as Ottawa does. Buffalo’s problem is they don’t have an ownership, and ottawa is running out of money. There’s no frikin way Buffalo will literally give their profit to Ottawa.

    What you just said was so uncalled for, it speaks for itself. I bet you any money you’ll reply with a “your momma joke” or a “disgrace of a leaf fan” reply even though the leafs weren’t even mentioned in this article or your comment.

    It ain’t gunna happen, sorry man. Bettman doesn’t have a mind of a 10 year old.

  12. Tradedude says:

    Where did you hear that the UFA thing. Don’t they have contracts that say when their contract expires. I’m not too sure of how that works out.

  13. Leaf_Expert says:

    I know that my comment is a long shot from happening…but all it was a suggestion….

    The Sabres have a whole lot more problems than finding an owner…They are in *MASSIVE* debt….

    So if the league juss got rid of them they could reale the debt, and give all profits to the Sens…

    But that will never happen, I know….

  14. wayne2 says:

    I hated when Québec lost the nordiques,but Ottawa should not move to Québec.The problem IS NOT THE LACK OF SUPPORT,its the canadian dollar and i guess some financial thing that i dont know about.Look at the attendance(see the story below),they are average and most team`s attendances went down this year.And yes,Québec were great fans as well and yes do deserve a team,maybe a southern team that doesnt deserve hockey.Tampa Bay,Florida,Nashville,Phoenix,Anaheim,they should move to Québec,Winnipeg,Hamilton,Saskatoon and Halifax where hockey is really appreciated.It will never happen but still is the thing that should be.

  15. cwhockey says:

    I’m not too certain this is true, so any info I have is sketchy until I can confirm it. But it’s possible that if they are not paid on a schedule stated by their contract, that contract is voidable by the players. Therefore, they are free and clear.

    Again, I’m not too sure about this. If I can find a reliable source that confirms this, I’ll post it. I read this somewhere a couple of days ago, but can’t for the life of me remember where. Seems like it wouldn’t be possible and is only someone’s wild speculation, but with the nature of the player’s contracts today, nothing would surprise me.

  16. mikster says:

    Great…let’s see them move to Redneck Country…..

    Move them to Winnipeg at least, they’d die to have a hockey team again.

  17. rrudd says:

    frankly, i’m at a loss to try and figure out if you have a point with this post.

    are you blaming the league’s finance issues on the players? the owners? detroit? terrorists? hamilton?

    very confusing.

    relating september 11th to the finances of a hockey club seems a little ignorant and crass as well.

  18. Bishop7979 says:

    if anouther team ends up in a state where country music and nascar/collegebasketball are the mainstays of life i think its time for me to step away from the nhl for a while. I agree give one back to winnipeg, give one back to quebec, just dont the sens, or buffalo for the matter someplace thats never seen snow.

  19. Bishop7979 says:

    if anouther team ends up in a state where country music and nascar/collegebasketball are the mainstays of life i think its time for me to step away from the nhl for a while. I agree give one back to winnipeg, give one back to quebec, just dont the sens, or buffalo for the matter someplace thats never seen snow.

  20. Bishop7979 says:

    In response to the corrections that I posted, if the figures from the orginal are indeed posted in canadian money then I apologise, this was something that i did not consider until after posting the article that i found from tsn.

  21. Bishop7979 says:

    if only this were true, I wish the penguins would stop paying some of their players in hopes they would void their contract. goodbye mike wilson, hans jonnson, janne laukanenn, ect ect, maybe that way we could afford kovie for the next five years

    oh well i can dream cant I

  22. BabyLeaf says:

    This whole situation is really sad! Even though I am a Leaf fan, I really want Ottawa to say in the NHL.

    Ottawa has a great team…let’s hope that the Sens get the financial backing!

    In my opinion everyone loses if the NHL loses yet another Canadian Team!

    Jillian

  23. zednik says:

    But the NHL has stepped in and players will be paid in a matter of days. As is the case with most revenue it doesn’t come all at once. Ottawa will be able to pay their players it may just be tight. This is more of a Long Term Problem then a Short one.

    -Z

  24. leafbrat says:

    Sorry about that but i did a copy and paste so the article would come out the same.I put it up there minutes after they had reported it.Maybe they changed the figures.TSN probably got the real story.Or like you said it might have been a different currency.Thanks!!

  25. devfanman4 says:

    It’s a shame. I’m in NJ myself, but I can’t stand seeing all these Canadian teams moving from such great cities to places where the fans don’t know the first thing about hockey. Well…luckily that’s only happened to Winnipeg so far. Quebec was still a shame even though Denver should have a hockey team. I’m shocked at Ottawa’s success as a team while all this has been going on. They beat the Thrashers 8 to 1 tonight and they’re #1 in the East. I hope Bettman will wake up and do something about this mess he’s partially created. By the way…can we impeach him?

  26. wayne2 says:

    I would never be that ignorant,the comment was maid to make a point about nomather how big and powerful you think something is,it still can fall/collapse.I deeply regret sept 11 by the way.And yes,i blame those overpaying hockey teams for the financial problems the NHL is in,not sept 11.Sorry if i mislead anyone.

  27. Aetherial says:

    It isn’t Bettman that is the problem. It is “ghost-financing” and the Canadian Dollar.

    The situation is also not as bad as it looks. The owner will ALWAYS make it look worse.

    I believe player salaries are guaranteed by the NHL so they will get paid.

    This sucks, the top team in the east and posibly the best team in hockey right now and they will probably no be in Ottawa much longer. I am a Leaf fan and I still don’t like this.

  28. Tradedude says:

    Man, I wish. I hate this team for play-of reasons and northeast division reasons, but still, keep the team in Ottawa or move ’em to Quebec. I can’t stand them moving them to a place where they don’t even know what sports are (i.e. Texas, (north)stars played so good, fans had to learn). what you said.

    Canada created the sport so there should be teams in Canada. more than 6 atleast. Although Canada does have extremely low population.

    If the NHL doesn’t fix their problems man, I will start to complain to some satellite complanies that they do not have AHL coverage and i wanna see their games. thats all i hav to say , i guess.

  29. hockey says:

    From what I’ve heard (on TSN), the LEAGUE can declare the players as UFAs, or they will be auctioned off to the highest bidders around the league.

    But it’s moot now, it appears the league has stepped in and they’ll be paid soon enough.

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