A group led by Toronto billionaire Michael Andlauer has won the bid to buy the Ottawa Senators for $950 million, a source with knowledge of the sale confirmed to The Athletic on Tuesday. Here’s what you need to know:
- The agreement, which is still subject to approval by the NHL’s Board of Governors, will dwarf the $900 million that Fenway Sports Group paid to purchase the Pittsburgh Penguins in 2021.
- The Andlauer Group and the board of Senators Sports & Entertainment have reached an agreement to exchange operational control and 90 percent of the club.
- Anna and Olivia Melnyk, the children of the late owner Eugene Melnyk, retain a 10 percent stake in the club through the family’s estate.
- Andlauer owns a 10 percent minority stake in the Montreal Canadiens, which he must sell as the Senators’ owner.
What you say
“My family and I are very excited to be a part of Ottawa Senators Hockey Club,” Andlauer said in a statement. “I believe the Senators’ fan base is one of the most passionate in the league and I look forward to taking the franchise’s success to the next level on and off the ice. The short and long-term future of the team is incredibly bright and I look forward to getting to know the team, the fan base and the community.”
The Athletic’s instant analysis:
How surprising is that?
Andlauer’s name was one of the first to come up as a potential candidate to purchase the Senators when they officially launched in early November. So it’s no big surprise that he emerged victorious from this process. Many people pointed out that his involvement with the Canadiens was a factor that worked in his favor in pursuing the senators.
The consensus was that Andlauer was Commissioner Gary Bettman and the NHL a familiar face, so there would be no big surprises here. Of the three remaining candidates, Andlauer could be considered a safe bet given his past history in the NHL space.
The only question people have had in recent weeks has been whether Andlauer is willing to raise his price for the Senators. As The Athletic reported on May 16, many wondered if Andlauer was willing to go too far past the $900 million mark to secure the Senators’ franchise. There was a feeling that Andlauer believed the true worth of the Senators was closer to the $800 million or $850 million mark.
But Galatioto Sports Partners – who were responsible for conducting the sale – were able to get Andlauer to raise his price enough to make everyone feel comfortable conducting a sale.
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What do we know about Andlauer?
Of the three candidates lining up to buy the Senators, Andlauer is considered the group’s most die-hard hockey fan. He was a regular goaltender in the men’s hockey league near Hamilton for years and showed his passion for the game on the ice. As The Hamilton Spectator wrote in a 2021 feature by Andlauer, he accidentally ended up owning an interest in the Montreal Canadiens due to a penchant for playing in the men’s league as a goaltender.
According to the story, Andlauer underwent hip surgery in the spring of 2009 to repair damage he sustained from the rigors of playing that position. This necessitated a trip to a specialty clinic in Colorado, which happened to be run by then-Canadians owner George Gillett. The two men got together and a short time later – when Gillett sold the Canadiens – Andlauer was classified as one of the minority owners.
At the time, Andlauer owned the Hamilton Bulldogs and acquired an interest in the team in 2003 before becoming sole owner of the AHL franchise. But in 2015, Andlauer sold the Bulldogs to the Montreal Canadiens and agreed to buy the Belleville Bulls out of the OHL and bring them to Hamilton.
“Michael Andlauer is known for his dedication to both the game and the community, and we welcome him to the OHL family,” OHL commissioner David Branch said when Andluaer bought the Bulls in 2015. “Hamilton has a long and colorful history and we look forward to building on that tradition next season.”
Andlauer built his personal fortune with more than three decades of experience in the transportation industry in Canada. In the early 1990s he founded ATS – Andlauer Transportation Services – which now operates under the name ATS Healthcare.
In December, Andlauer’s company announced that it had raised $86.6 million from the sale of shares in Andlauer Healthcare Group. At the time, many assumed so to position itself for the purchase of the Ottawa Senators.
What could be his plan for hockey operations?
The only name that keeps coming up in this conversation is Steve Staios, the former NHL defenseman who served as president and general manager of the Andlauer-based Hamilton Bulldogs.
But last fall, Staios joined the Edmonton Oilers organization as a special adviser on hockey operations under Ken Holland. Following the announcement, Andlauer spoke enthusiastically about Staios’ impact on his organization.
“I am incredibly proud of Steve and forever grateful for everything he has done for our city and our fans on and off the ice. I have no doubt that his experience and success over the past seven years with the Bulldogs will make him an equally successful manager at the NHL level,” Andlauer said in a statement.
Regardless of Staios being involved, there may be an opportunity for Daniel Alfredsson to play an important role in the hockey department if Andlauer is open to the idea. Alfredsson was careful not to join any of the bidders during the sales process and wanted to keep his options open. But now that the conditional sale to Andlauer has been approved, it seems the perfect time for Alfredsson to begin negotiations for a potential role.
Back in February, Alfredsson made it very clear that he wanted a voice towards the franchise on the ice.
“I’d like to see what happens, but I’d like to play a significant role in hockey action. That was my feeling in the summer and I feel that even more now,” said Alfredsson. “I feel like there’s a lot I can contribute in this role, and that’s what I hope. We’ll see what happens with the new owner, but this is my dream job.”
There have been rumors that coaching candidates like Patrick Roy and Claude Julien could be involved in Andlauder’s bid, but his group has pretty effectively kept their plans for the hockey department under wraps.
As of this writing, the job status of Senators general manager Pierre Dorion and coach DJ Smith is still unclear, but we should expect to have some confirmation in the coming weeks.
What do we think Andlauer’s arena plan could look like?
While other bidders in this process like the Remington Group, Steve Apostolopoulos and the Kimel family have had a real estate background, Andlauer’s specialty is in logistics and transportation. He will certainly be more likely to draw on local expertise in this area, which includes a partnership with Claridge Homes, one of Ottawa’s largest real estate developers. There was a sense that Andlauer was more interested in buying the hockey team than just a real estate deal.
The question is whether Andlauer is comfortable with the prospect of leasing land to build an arena on the LeBreton Flats. Currently, the senators have a letter of intent with the National Capital Commission (NCC) to build their new arena on the LeBreton Flats site near downtown Ottawa.
However, this was all a lease agreement, which probably wouldn’t be the ideal scenario for Andlauer if his partners want to develop the surrounding land. Real estate experts often point out that owning the property – rather than leasing it – is a far more beneficial scenario for monetizing the property.
We should probably expect to hear more rumors of alternative locations — like Bayview Yards and the ballpark — as potential properties Andlauer could acquire himself.
What is the approval timeline?
The sale is subject to review by the Executive Committee of the NHL Board of Governors, followed by a vote by the full board. The NHL has a board vote next week, but the sale of the Senators will not be discussed there. A realistic timeline is for the process to be completed in August or September.
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(Photo: Jaylynn Nash / Getty Images)