The long-awaited sale of the Ottawa Senators has entered the final stages, with only two potential buyers left vying for ownership of the franchise. Toronto billionaire Michael Andlauer and the Kimel brothers, Jeffrey and Michael, of the Harlo Capital Group are now officially the leading contender in what’s been a highly competitive and drawn-out process, Postmedia’s Bruce Garrioch reported late Saturday night.
Sources close to the negotiations told Garrioch that an agreement in principle to sell the team is expected to be announced imminently. It’s believed the NHL is pushing former owner Eugene Melnyk’s estate representatives to close the deal “as soon as possible,” Garrioch added this morning.
Galatioto Sports Partners, the New-York based banker facilitating the deal, has kept a lid on most of the details of the bids submitted by four leading candidates last month. However, on Friday, it was reported that Toronto billionaire Steve Apostolopoulos, who had a well-financed offer exceeding $1B, withdrew from the process due to frustration with the prolonged negotiations and demands from the Melnyk estate representatives – hence the NHL’s reported impatience.
Apostolopoulos’ exit has cleared the path for either Andlauer or the Kimel brothers to become the new owners of the Senators. Both parties are familiar with the NHL’s head office, and their initial bids ranged between $850MM and $1B, but it’s believed both have raised their offers to the $950MM range, Garrioch said.
Andlauer is considered the frontrunner due to his position on the NHL’s board of governors as an alternate for the Montreal Canadiens, although he would need to sell his 10% stake in the Habs. Per Garrioch, a deal is close with André Desmarais of Power Corp, a Montreal-based company.
If Andlauer emerges as the winner, significant changes in the Senators’ hockey operations department can be expected, says Garrioch. As the owner of the Hamilton (soon-to-be Brantford) Bulldogs in the OHL, Andlauer aims to bring connections he’s made there to roles in the Sens organization.
But the Kimel family remains a formidable contender. They have been involved in the sale process from the beginning, initially attempting to partner with Eugene Melnyk for the bid to build a new rink at LeBreton Flats in December 2021. Garrioch clarifies the Kimels, who were part-owners of the Pittsburgh Penguins, sold their share to Fenway Sports Group when they became majority owners of the Penguins in 2021.
The Kimel bid also includes backing from star Canadian singer The Weeknd and New York billionaire Jamie Salter, who Garrioch says just recently joined the group.
Although Los Angeles-based producer Neko Sparks (and Snoop Dogg) remains in the picture as a potential bidder, Garrioch says the prevailing belief among other contenders is that Galatioto and the Melnyk estate are seeking to maximize the sale price while keeping Sparks as a fallback option.