Insider reveals just how much debt the Ottawa Senators have and ridiculous ask holding up their sale

Published June 12, 2023 at 6:29 PM

There was a time when the Ottawa Senators were thought to have 10 potential buyers and it seemed as if the team would easily sell for a billion dollars. Those circumstances have clearly changed, as the Senators now appear to only have two potential buyers and candidates falling out daily.

Today on the 32 Thoughts Podcast, Elliotte Friedman revealed what was holding up the potential sale.

Friedman says one of the issues regarding the sale is the capital gains taxes. Another issue is the desire to have an anti-dilution protection built in.

There is a believed $450M debt. Usually the seller would pay capital gains taxes, but they are trying to make the buyers pay.

To put the team's debt into perspective, Eugene Melnyk bought the Senators for a mere $100,000,000 years ago, and over time managed to tack on $350,000,000 worth of debt. I'm no expert, but that doesn't seem like a well run organization.

Now as a sale nears completion the board in charge of the sale is making the ridiculous request for the buyers to cover the costs of Capital Gains. The expected Capital Gains on this sale would be in the upwards of $70,000,000+ making this request even more ridiculous. Imagine requesting someone who is making a nearly billion dollar purchase, to cover your debt.

Even until the end the Sens will continue to rival the Arizona Coyotes for the league's biggest laughing stock.
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