OTTAWA, Ontario (AP) — The Ottawa Senators of the NHL will soon have new ownership as Canadian businessman Michael Andlauer leads a group that has reached an agreement to acquire the team.
In an announcement made on Tuesday, the Senators confirmed that Andlauer and his consortium will purchase 90% of the franchise from the Melnyk family. The deal, reportedly valued at nearly $1 billion, aligns closely with Commissioner Gary Bettman’s anticipated sale price for a team situated in Canada’s capital.
Sheldon Plener, the Senators’ chairman and governor, expressed his satisfaction with the sale, stating, “Michael epitomizes everything we had hoped for in a prospective owner – a dedicated individual committed to Ottawa.” Plener also referred to the transaction as a significant milestone for the National Capital Region.
While the majority ownership will transfer to Andlauer’s group, Anna and Olivia Melnyk, the daughters of the late former owner Eugene Melnyk, will retain a 10% stake. Eugene Melnyk passed away at the age of 62 in March 2022, following an undisclosed illness.
Andlauer, aged 57, is the founder and CEO of a healthcare group specializing in transportation services for the industry. Additionally, he established a private equity firm based in Toronto. Prior to his involvement with the Senators, Andlauer owned the Hamilton Bulldogs of the American Hockey League from 2004 to 2015. Later, he purchased the Belleville Bulls of the Ontario Hockey League, relocating the team to Hamilton.
In addition to his endeavors in the hockey world, Andlauer has served as an alternate governor for the rival Montreal Canadiens since acquiring a share of the renowned franchise in 2009. However, as part of the process to finalize his purchase of the Senators, he will need to divest his interest in the Canadiens. This step, along with obtaining approval from the NHL’s Board of Governors, is necessary to complete the transaction.
Expressing his enthusiasm for the opportunity, Andlauer remarked, “I firmly believe that the Senators boast one of the most dedicated fan bases in the league, and I am thrilled to elevate the team’s success both on and off the ice to new heights. The future of the franchise, in the short and long term, holds tremendous promise, and I eagerly anticipate becoming acquainted with the team, the fanbase, and the community at large.”
According to Forbes, the Ottawa Senators are valued at $800 million, placing them 24th among the NHL’s 32 teams.
Commissioner Gary Bettman recently expressed his belief that the franchise has been undervalued, stating, “I have always felt that we have been underestimated, so this reaffirms that our franchises are more valuable than what Forbes, Sportico, or many investment bankers have indicated.” He emphasized that while revenue is often the focus, the league’s system, which ensures competitive balance and equal opportunities for all teams, should contribute to higher valuations. Bettman believes that this perception is starting to change.
The sale of the Senators generated significant interest, with competing bids coming from notable figures such as actor Ryan Reynolds, Canadian R&B singer The Weeknd, and rapper Snoop Dogg. Ultimately, the team was acquired by Michael Andlauer and a group of minority owners. One of their future tasks will be to locate a downtown site for a new arena to replace the current suburban rink that has served as the Senators’ home since 1996.
