For those who haven’t had their fill of Eugene Melnyk today, here’s a lengthy Ottawa Citizen article on the embattled Senators owner, who claims he’s lost almost $100 million on the team since buying it in 2003.
How much are the Senators costing him? It’s impossible to be definitive because, despite its high public profile, the team is a private company. Not only that, the NHL regularly warns the 30 franchise owners not to divulge details about their operations. Nevertheless, Melnyk and two of his long serving senior executives — Leeder and chief financial officer Erin Crowe — offered some insight into the team’s finances.
On Melnynk’s decade-long watch, they say, the team has generated a grand total of just $6 million on operations — that is, total revenues minus the costs associated with paying and moving the players, advertising and managing the arena. After subtracting items unrelated to operations — such as interest on the team’s debt and capital expenditures to keep the arena up-to-date — Melnyk has had to absorb cumulative cash losses of $94 million. In short, he is losing an average of $9 million to $10 million a year. And this excludes the additional interest and fees related to the debt extensions.
There’s more in the story, which is well worth a read.
Earlier today, Melnyk blasted agent J.P. Barry over the failed Daniel Alfredsson negotiations.
Related: More bad news for Sens owner Melnyk