It will come as no surprise for fans that have followed this team closely for the last couple years but I'll say it anyway- Money is extremely tight for the Ottawa Senators right now.
After multiple discussions with key contacts over the past year, it’s clear to me that the much talked about “internal budget” is extremely strict, and while there may be some flexibility in there down the line, right now it is has significant influence on the way the hockey team operates on a day to day basis.
In an article posted on the SenatorsExtra site the other day, Ken Warren was the first to put a dollar amount on the team’s budget, suggesting that they’ll commit only $50 million to player salaries. They’ve spent a little over $43.5 so far which would leave them with about $6.5 mil to sign Alfredsson, Condra, Wiercioch and Benoit.
Not a whole lot of wiggle room.
In the past couple days, top notch Sens bloggers Travis Yost and The 6th Sens have talked about this topic.
Over the past two years, fans in Ottawa have grown accustom to the term budget. As part of the three year rebuild, we were led to believe this team would tighten up financially, restock the cupboards and prepare for a future run at the Cup. But now, with the team looking like it could be a legitimate contender far sooner than anyone anticipated, the money just isn’t there to add a key piece that could help put this team over the top. The question, I have is why?
A budget isn't automatically a bad thing. Watching some of the buyouts teams made last week was a pretty strong endorsement for fiscal responsibility. But when it prevents the team from competing with the elite teams in the league, it becomes an issue.
I was and continue to be under the impression Eugene Melnyk has money. I was also led to believe that his priority was bringing a Stanley Cup to Ottawa. But based on the speculation around this team lately, I'm not entirely convinced. Not right now anyway. That deal with Canadian Tire that was announced last week? Apparently the team just needed the money that bad?
In fact, there were unconfirmed rumours and speculation that late last season the team’s financial situation became so bad that the league actually had to step in to cover some of the team’s expenses. Now I don’t know how often something like that happens around the league but it certainly doesn’t sound like a team that is in a comfortable situation financially. I don't have all the details. And I suspect that other journalists and reporters from around the league are at least partly aware of the situation but don't know enough of the specifics to write about it. But that's the advantage I have as a fan blog. I can pass along part of the "story". And at least give fans a glimpse at what is apparently going on behind closed doors.
This whole situation has flown under the radar for the past couple seasons because the team on the ice has been so damn impressive. Entering the final season of a three year rebuild, the Senators have improved dramatically under Head Coach Paul MacLean, and have done it on a bargain basement salary. They have a building that's packed most nights. Seven playoff home games in two years.
On the ice, things could not be going better for the team from the Nation's Capital. But off the ice, there have been a few twists and turns that suggest maybe everything isn’t quite as rosy behind the scenes.
In September 2009, Sens Owner Eugene Melnyk and his Biovail company were charged with accounting fraud. In December of 2011, the city of Ottawa was preparing to host the NHL All Star Game and then Scotiabank Place desperately needed a new scoreboard in time for the February festivities. The whole process also seemed a little odd. The Senators needed to have the new board in place in time for the NHL All Star Game but I kept hearing that money was a bit of a stumbling block. In the end they would lease the new board instead of buying it. Fast forward to the spring of 2012, the Sens Owner sold his Ontario Hockey League team, the Mississauga St. Michael’s Majors.
Then in October of the same year, both Doug MacLean and Nick Kypreos hinted strongly that one Ontario team could potentially be for sale. On other occasions, we’ve heard rumours that Melnyk may be looking for business partners to join him. While Melnyk was quick to dismiss the rumours, it was a rumour that raised a few eyebrows around the league.
And then this off season, the Sens made a seemingly sudden decision to terminate their contract with Scotiabank in favour of a more all-encompassing, and likely higher paying, "partnership" with Canadian Tire. Following that announcement, an at times angry Melnyk talked about how important his casino bid was for the stability of the hockey club.
So where do things stand now? Hard to say but how they handle the next couple weeks will give us a pretty good indication.
The team finds itself on the verge of contending, with a Captain carefully weighing his chances at one last Cup run, and apparently no money to spend to add to this already competitive roster.
It's a really tough situation for Sens GM Bryan Murray as he's forced to operate under a strict internal budget despite putting himself in such a good position in the salary cap era. Rumours of any high price acquisitions have been quickly dismissed by Murray. He has always been quick to say that high priced talent doesn’t really fit in with their “plan”. He even hinted that the only way they could pursue a big name free agent, was if Alfredsson decided not to come back another season.
Money out, money in.
As a diehard supporter of this team, writing this blog post is not enjoyable. For a fan base that went through the lows of the Rod Bryden era, only to be rescued by a wealthy businessman from Barbados, this story will likely stir up most unpleasant memories. It’s obviously not that bad because Melnyk has money. I think…
And maybe I have some of the details of this story wrong. And maybe I'm overstating some of the financial concerns. As a loyal supporter of this team, I really hope that's the case.
But the fact is I am comfortable enough with this story, and have heard it from enough people in the know, that I felt the time was right to share it with the readers.
Now obviously this is a situation that can improve or even change. The team will continue to operate on a shoe string budget, and thanks to some spectacular drafting and rapid player development, should remain competitive. But at some point, if the Ottawa Senators want to seriously contend for the Stanley Cup, they'll need to spend some money.
I sure hope the current Owner is prepared and capable of doing that when the time comes.
- It will be interesting to see how the Senators handle free agency, considering what has been outlined above. Not a whole lot of wiggle room in that budget right now but hopefully there is some new found flexibility there after the agreement with Canadian Tire. NHL teams will begin the process of courting free agents this week which should make for some interesting rumours. I have a hunch Daniel Briere remains a target for Ottawa but he’ll have lots of teams calling.
- When it comes to adding another top six forward, the trade route seems like the most likely option. Bruce Garrioch suggests that the Sens made another play for Bobby Ryan on draft day but that the price was too high. I also believe they talked to the Islanders about Nino Niederreiter.
- Priority for Bryan Murray this week will be getting the Captain signed to a new contract. While other teams could theoretically be calling Alfredsson right now, he is committed to playing here in Ottawa. A two year deal seems like a real possibility.
