Melnyk stands to gain more financial flexibility after refinancing the team's debtGETTY IMAGES
Capital Sports Holdings, the Senators' parent company, has completed a $135M "financing of a 'six year senior term debt with a syndicate of financial institutions,'" according to Bruce Garrioch of the OTTAWA SUN. As a result of the deal, there will be "re-investment in the business," and with the six-year term of the agreement it puts the team back in a "better financial situation heading into next season." The last time the Senators announced a "re-financing of debt" was April '13, when a deal was confirmed for $150M in financing. The belief is that this loan was "signed at a lower interest rate than the previous arrangement the club had that expired recently." This could give Senators Owner Eugene Melnyk "more financial flexibility in the future." While there has been "no shortage of talk the franchise was up for sale, this decision could serve notice that Melnyk is committed to being part of the long-term future of the organization." The Senators have been "working on this re-financing for months," and Melnyk felt rumors of a possible sale "stemmed from the organization meeting with several financial institutions to try to get this deal done" (OTTAWA SUN, 6/28). THE ATHLETIC's Chris Stevenson cited an NHL exec who has "been involved in this type of transaction" as saying that the Senators franchise and the Canadian Tire Centre were "likely used as collateral to secure the loan" (THEATHLETIC.com, 6/27).
BETTER OFF WITHOUT MELNYK? THE HOCKEY NEWS' Ryan Kennedy wrote the Senators franchise has been "rocked by scandal after scandal in the past six months, from veiled threats by owner Eugene Melnyk to Randy Lee’s arrest to the whole Mike Hoffman situation." A report from hockey blog the Fourth Period noted the Senators "had an offer to buy the franchise from Melnyk," and while the initial offer was "apparently rejected ... negotiations are not dead." Kennedy wrote that Melnyk is "one of those sports owners that does more harm than good and his reluctance to spend money has kneecapped the franchise for years." Melnyk has "alienated the best player in franchise history" in D Erik Karlsson, and things will "only get worse from here on out if he doesn't step aside." The Senators have "attendance issues already," and it is worth wondering what the '18-19 season "is going to bring" (THEHOCKEYNEWS.com, 6/28).
FANS READY TO HIT THE EXIT: THE ATHLETIC's James Gordon wrote the anger toward Melnyk in Ottawa is "palpable," and many fans have indicated that if the Senators trade Karlsson, they "are done." Gordon: "No more tickets, not even a cursory check-in on the TV." The Ottawa market is "still smarting over" former Senators RW Daniel Alfredsson's "departure over a financial dispute, and losing Karlsson too would be devastating" (THEATHLETIC.com, 6/28).
