On Tuesday and Wednesday of this week, the National Capital Commission will host two separate public consultations on the LeBreton Flats Redevelopment proposals. Of course we’ve heard a little bit about each of the proposals through media leaks, but this will be our first real chance to learn about the specifics of each proposal and hear from the two competing groups. If you’re a Sens fan and can make the time, be there tomorrow night. Obviously it’s early in this process but it’s going to be so important for hockey fans to get involved and stay involved. The next couple days are going to produce a ton of discussion on the future of the Ottawa Senators. With that in mind, I have invited Spencer Callaghan to provide some of his thoughts heading into this week’s consultations. Spencer provided us with a detailed series on LeBreton a little over a year ago and is a contributor for the Ottawa Citizen. Over to you, Spencer…
WRITTEN BY SPENCER CALLAGHAN
A few days ago I began writing a rather lengthy piece about the next phase in the upcoming LeBreton Flats process. The two bids vying to redevelop the long neglected land will finally be revealed to the public and there are a number of factors that could determine the outcome of this process.
Then everything changed.
Sure I could tell you how having only two bids both featuring an arena is actually not a good thing as allows opponents of an arena to rally together instead of being split amongst a series of other proposals.
I could talk about how the Sens bid needs to clear a high bar to get the NCC’s seal of approval at a site that inexplicably is being held up as a national treasure despite the fact it was expropriated from Ottawa citizens in 1962 and then left to rot.
I could even question the NCC’s ability to deliver a suitable development at LeBreton given their track record with similar developments around the city.
However all of that would be ignoring the elephant in the room–the upcoming fight for the future of the Ottawa Senators.
While I still maintain that the long term health of the Ottawa Senators is directly tied to their ability to find a suitable home downtown (and LeBreton is the most suitable, and available, large piece of land to accomplish that), the struggle for ownership of the Sens looks like it is about to take centre stage.
Late Saturday night, it was reported that not only did the second bid for LeBreton, the DCDLS Group, feature an NHL arena, but it also was being backed by some of the heaviest financial hitters in Canada in an attempt to wrestle control of the team away from Eugene Melnyk.
When rumours first circulated that both bids featured an NHL arena, Eugene Melnyk was his usual diplomatic self. In rejecting the idea that the Sens would ever play in a building they didn’t own, Melnyk once again vowed to never sell the team. Of course in today’s NHL no right-minded owner would ever play in a building they didn’t own (right Charles Wang?). Therefore, including an NHL arena in the DCDLS bid could only mean one thing–they had an NHL team in mind, the Sens.
Let’s be clear, no one ever says something is for sale until it’s sold, that’s how business works. Eugene Melnyk would never publicly state the Sens are available. In fact, vehemently denying it only serves to drive up the eventual sale price and solidify his position. Admitting something is for sale lowers its value.
That doesn’t mean Melnyk is lying, I’m sure he genuinely believes what he is saying, however it’s not very difficult to imagine a scenario where he sells the team either. It has been well documented that Melnyk has been suffering financially lately. He has made some bad financial moves, and the Sens are the equivalent of triple mortgaged right now with debt levels that are undoubtedly the reason behind the team’s “internal cap”. With the Canadian dollar tanking and new revenues hampered by a mediocre team and an arena situated in a giant parking lot on the edge of town, the future for the Sens under Melnyk isn’t bright.
The DCDLS bid isn’t a fly-by-night operation without a plan, it features two of the wealthiest men in Canada. Wealth that makes Eugene Melnyk’s depressed net worth look comparatively small.
André Desmarais is part of one of the wealthiest, and most influential families in Canada. The Desmarais Building at the University of Ottawa? That’s them. Desmarais is the chairman and CEO of Power Corporation, a company with deep political ties, particularly with the Liberal Party who just so happen to be in power again.
The other big name is Guy Laliberté, the co-founder of Cirque du Soleil. A billionaire in his own right, and someone who brings cultural cachet to a bid that has to impress an organization obsessed with international reputation.
This is no joke. An organization such as this doesn’t come to the table without a plan and the money to execute it.
The rumoured bid features an arena that is partially underground (potentially opening up more surface area for green space), a library/national archives building, a beer museum (with Molson Coors sponsorship), an automotive museum, and a botanical garden. While some of these ideas are going to need a little more explanation (Brewseum? Really?) if I had to put money on which bid featured better architecture, more creative use of green space, and more cultural cachet, I’d have to choose the one with the well connected billionaire and the Cirque du Soleil guy.
My fear from the beginning of this process was the Sens ability to think big, to understand that this site and this process required more than the typical level of Ottawa Senators polish. Maybe they’ll prove me wrong, maybe the arena is an architectural marvel, the library is a mecca of knowledge and inspiration, and the “Sensplex” is an international centre for athletic excellence, but I’m not banking on it.
This is an organization that under Eugene Melnyk has constantly shown a tendency towards mediocrity. The NCC, for better or worse, has set a high bar for this site despite the fact they have shown nothing but utter contempt for the location for over 50 years since they took it from the citizens of Ottawa.
The irony in this situation is that the bid Eugene Melnyk considers hostile is actually the one that might save this process for the Senators, if not for him as their owner. Already opponents are lining up, sight unseen, to oppose an arena at LeBreton. Eugene Melnyk, despite owning the team that is at the core of this community, doesn’t have a lot of allies and has shown an inability to collaborate in the past. Now enter a well-financed group with Ottawa connections, deep political ties to the governing party, and a cultural relevance that might keep the anti-sports naysayers at bay.
The proof will come when the bids are revealed later this week, but if the idea of a second group seeking to build an NHL arena at LeBreton was laughable before, now it must be considered a serious contender.
Eugene Melnyk can deny the team is for sale, but the reality of the situation is that his finances aren’t what they used to be, his bankers must be getting impatient, and his health problems can’t be helping the situation. Everything is for sale at the right price, and the Ottawa Senators need the revenue of a downtown arena to be viable long term. Melnyk’s bankers know this, and if he is unsuccessful at securing LeBreton, and the DCDLS Group makes him and offer he can’t refuse, the Sens could very well end up changing hands.
No matter the outcome, this next few months may very well decide the future of the Ottawa Senators.
While having two bids featuring an NHL arena may seem like cause for Sens fans to celebrate, if the bid quality is not high enough, the NCC could cancel the entire process and start again. Simply building an arena with a bunch of condos and retail around it is not nearly enough. Most importantly, those who want to derail an arena at LeBreton are going to come out hard and fast in opposition. If the Sens bid contains an ask for government money (beyond the LeBreton land itself) political support will evaporate quickly. This makes the DCDLS bid even more interesting as it has the potential to be financially self-sustaining. If politicians are looking for a way to support the Sens without providing handouts to billionaire owners, they may line up in support of the DCDLS bid increasing pressure on Melnyk to sell.
Of course all of this is speculation, we still need to actually see the bids before making any judgement (although some politicians can’t help themselves) but one thing is certain, it is shaping up to be a very interesting time in the Nation’s Capital.
