George Gillett Cedes Control Of Canadiens To Molson-Led Group

Molson Group Could Pay Over $600M For Franchise

Canadiens Owner George Gillett Thursday "ceded control" of the franchise to a new ownership group headed by Molson Coors Brewing Co. VP/Marketing Geoffrey Molson, according to Pat Hickey of the Montreal GAZETTE. While there are "still details being worked out, Gillett scoffed at a report the deal had slowed." The Molson group reportedly was set to pay as much as $550M (all figures Canadian) for an 80.1% stake in the Canadiens, plus complete ownership of Bell Centre and Gillett Entertainment Group. But that price could now exceed $600M, because Molson said that the group also is purchasing the other 19.9% stake in the Canadiens owned by Molson Coors. Molson stressed that the brewer "will continue to be involved as a major sponsor of the team 'for many years to come.'" The Molson group Thursday also confirmed that "two-thirds of the investment in the team has been provided" by Quebec-based investors, including $75M from Investissement Quebec, a government-controlled corporation. Meanwhile, Geoffrey Molson offered Canadiens President Pierre Boivin and GM Bob Gainey "strong votes of confidence," though he later suggested that he would "have a hands-on role" with the team himself (Montreal GAZETTE, 9/11). In a front-page piece for the Montreal GAZETTE, Dave Stubbs reports the new ownership group has asked Gillett and his family to "serve as consultants" to the club, though details still have to be worked out. Gillett, who acquired the Canadiens from Molson Inc. in '01, will "profit handsomely in the transaction" (Montreal GAZETTE, 9/11).

JOINING THE RUSH: AHL Hamilton Bulldogs Owner Michael Andlauer Thursday in a statement revealed that he has joined the Molson-led ownership group, which also includes telecom company BCE, investment firm Woodbridge Co., Quebec's QFL Solidarity Fund and investor Luc Bertrand (Bulldogs). Andlauer would not say "how much of the team he owns, nor how much he paid for it." But he added, "I'm not going to be a passive investor" (HAMILTON SPECTATOR, 9/11).

INTO THE REDS: Gillett Friday in an interview with Toronto's The Fan 590 said that he has a "long-term view of his association" with EPL club Liverpool FC, which he co-owns. Gillett admitted that he was "forced to sell one of his sports properties to fulfil what he termed 'family commitments,'" and said that the Canadiens were "simply more sellable than Liverpool." He was "adamant that the economic situation at Liverpool is very much robust." Gillett: "The club is in outstanding shape. Economically, it's never been stronger. We just paid down our debt very substantially. We have less debt per dollar than any club in the league" (ESPNSOCCERNET.com, 9/11).