Ottawa Senators Initiate Process Of Sale

Over the last few days, reports had emerged that indicated the Ottawa Senators would be the next NHL team up for sale. While that discussion quickly turned to potential buyers — especially when actor Ryan Reynolds’ name was included – the team had not actually confirmed anything.

Today, that changed, as the Senators announced that a process has been initiated for the sale of the team. As reported, they have hired Galatioto Sports Partners to assist in the transaction. Sheldon Plener, chairman of the team, released a statement:

Galatioto Sports Partners has been retained as financial advisor and a process has been initiated for the sale of the Ottawa Senators Hockey Club.

This was a necessary and prudent step to connect with those deeply interested parties who can show us what their vision is for the future of the team. A condition of any sale will be that the team remains in Ottawa.

That last part will quell many uneasy hearts in Ottawa, who were worried that a sale could potentially take away their franchise. Even beyond Plener’s pledge, the NHL also includes standard clauses in sales which block relocation for a set period of time. If the sale does happen, which looks likely at this point, a new owner would not be allowed to simply pluck the team out of Ottawa.

Still, a change in ownership will be a huge shift for the Senators, who were owned by the late Eugene Melnyk since 2003. After his death earlier this year, control of the team shifted to his daughters, both in their early twenties.

A new owner, whether it is a group or an individual, will have some big decisions to make quickly. The Senators are in dire need of a new downtown arena, and the team has been intimately involved with the development plan at LeBreton Flats. They were approved as the preferred bidder for the site, though there are no shovels in the ground yet, meaning things could go south depending on how the sale is processed (Senators fans will be all too familiar with arena plans disappearing quickly).

The team was recently valued at $650MM by Sportico but some have indicated that a sale would be for much more than that.