The dawn of a new era is on the way for the Ottawa Senators.
Sources say Andlauer has reached an agreement in principle to purchase the Senators. That means his offer has been elevated to the next stage of due diligence and work will now ramp up with the National Hockey League to try to close the deal.
With an agreement in principle signed with Andlauer, it will need approval from NHL commissioner Gary Bettman and the league’s executive board. That group met last Wednesday but could reconvene if necessary.
At the very least, NHL commissioner Gary Bettman will give the governors a full update on where the sale is at when the governors get together.
Andlauer’s current status ahead of the other three bids has resulted in the total elimination of Jeffrey and Michael Kimel or Los Angeles producer Neko Sparks, but the status of both is hanging by a thread.
As Postmedia first reported at the deadline May 15 for binding bids, Andlauer along with Toronto billionaire Steve Apostolopoulos along with Jeffrey and Michael Kimel of Harlo Capital and Sparks, submitted binding bids.
Sources say the league liked Andlauer’s vision for the city, his plans for the club’s brand and the ability of his family to try to help bring a Stanley Cup to Ottawa.
The four bids ranged from somewhere between $850 million and $1 billion (all figures U.S.). Since GSP received those bids, they’ve worked with the groups involved to get the best price possible for the National Hockey League team.
Apostolopoulos walked away Friday out of frustration with the process and we believe Andlauer then pushed for a deal to get done or he’d do the same.
It’s believed, Anna and Olivia, will retain as much as 10% stake once the deal is approved by the NHL.
A part-owner of the Montreal Canadiens, Andlauer wanted to win this deal badly, and had to raise his bid to make it happen. He will also have to sell his share in the Habs.
Now the work on closing the deal will heat up. That won’t happen in nearly enough time for the NHL’s board of governors meeting, which is set for later this month in New York.
Bettman will give the governors an update on the sale, providing details of the agreement in principle and what it took to get there. The sale needs two-thirds approval of the board.
The NHL will give the board as much detail as it can so that, when it comes time to vote, the governors are informed enough to rubber-stamp the decision after being updated on any changes that may have happened during closing.
That came after Eugene Melnyk’s passing in March 2022. The franchise is part of the massive estate Melnyk left to Anna and Olivia, and it has been operating business as usual since his death after a lengthy illness.
Sources say Andlauer supports the idea of a new downtown arena, but hasn’t decided whether that should be at LeBreton Flats or somewhere closer to downtown.
That’s why the seven groups that visited the city during Phase 2 of the process in late-March and early-April met with NCC CEO Tobi Nussbaum to discuss the project.
Nussbaum has said there is room for flexibility on the size of the parcel of land, but Ottawa Mayor Mark Sutcliffe has suggested options publicly that have piqued the interest of some of the bidders.
The 14 acres at Bayview Yards is the most interesting parcel that Sutcliffe has said the city might be willing to talk about and several of the bidders are interested in that location.
Sutcliffe didn’t mention the DND headquarters near the Rideau Centre, but some of the groups have studied that option.
