Senators Owner Eugene Melnyk's illness "has struck just as his NHL franchise is showing signs of strength," as the team late last fall "was valued considerably in excess" of $400M (all figures U.S.), according to James Bagnall of the OTTAWA CITIZEN. That figure "compares with" the $93M purchase price "negotiated by Melnyk 12 years ago." Melnyk until very recently has "suffered net losses" approaching $8.2M per year, "leaving the team with debt" estimated at roughly $150M. The big question is "whether the incremental revenue -- compared to the previous streams of broadcasting money -- are enough to finally offset the Senators’ annual losses." The club "isn’t saying one way or another," but it "seems unlikely the gap has been closed -- certainly not enough for Melnyk to have loosened the purse strings when it comes to paying players’ salaries." Melnyk is "house rich and cash poor despite the net rise in broadcasting revenue." His gains have "been theoretical -- based on someone else coming in to buy the team -- while his annual losses have been real, out-of-pocket expenses." Melnyk "needs time -- lots of it" to succeed financially with the Senators. Bagnall: "What if his search for a new liver is not successful? At the moment, it’s simply not clear how things would play out." Melnyk "does not appear to have shared plans" with Senators President Cyril Leeder or President of Hockey Operations & GM Bryan Murray. There "would be nothing to prevent Melnyk’s family from continuing to run the franchise with the help of the current management or other hired guns -- provided everything passes muster with the NHL" (OTTAWA CITIZEN, 5/16).
GET WELL SOON: Melnyk yesterday "thanked the public for its support ... in what he calls the 'biggest battle' of his life -- his urgent appeal for a liver transplant." The 55-year-old "was hospitalized three weeks ago because of liver-related complications," and his condition "is considered critical." More than 500 people "have offered to donate part of their liver to Melnyk." One of his doctors said that he "could undergo surgery by the end of the week." Melnyk in a statement said, "I have been overwhelmed by the outpouring of support from the public and the media. It is truly heartwarming to feel loved by so many people" (AP, 5/18).
