posted by Rocket
AllHabs.blogspot.com
You may have noticed that no articles have appeared on All Habs regarding the potential ‘sale’ of the Montreal Canadiens. This is not an omission. It is a choice.
Underlying all the rumors and speculation, there is a legitimate sports business story. Canadiens team president Pierre Boivin, in a statement, said “The Gillett family has retained the services of financial advisers to assess various strategic alternatives to optimize the value of its corporate assets. In Canada, the family has retained the services of BMO Capital Markets and the process is underway.”
So what does that mean? In short, a smart businessman has hired experts to conduct an business evaluation of the entertainment division of his company during a recession. I would be more worried about Mr. Gillete as an owner if he wasn’t undertaking this assessment.
BMO will provide Gillette with a report that could include dozens of different options that could vary by the asset. In the their typical sensational manner La Presse has irresponsibly chosen to focus on only one of the options: the sale of the Montreal Canadiens.
La Presse newspaper ran with this angle as if it was an evidentuality even to the point of speculating on possible buyers. It is unfortunate that players and coaches were forced to respond to questions about these rumours.
We observed the La Presse coverage regarding the arrest of Pasquale Magnolia and the subsequent commentary on RDS and other media sources. We were told that multiple players would be charged and that “the scandal would rock the foundations of the franchise.” As we now know, it was much ado about nothing. As far as I know the players named and the franchise have not received an apology.
For his part, Pierre Boivin has done a poor job communicating this message. Perhaps its no surprise as Boivin has recently caused confusion and dismay with his bizarre statements concerning the hiring of the next head coach of the Canadiens.
For all the people who contacted me about the impending sale of the Canadiens, I understand your concern. I can assure you that this is not something we need worry about at this time. At the worst, this may be a topic for another day well in the future. It is certainly possible that nothing will happen at all.
For now, it is time to focus on the last ten games of the season and to support the team as it makes its run towards the playoffs.
As coach Bob Gainey said “I’ve heard vague rumours about what’s happening. I didn’t hear that the hockey team was being sold. Have you? We have hockey games to play and it’s about the competition.”
THANK YOU! I’ve been trying to tell people that it’s no way even close to being certain that the Canadiens are for sale but no one has listened to me… Gillet owns more than just the Habs and he has many other options with regards to what he could sell. If he’s indeed looking to sell. It’s not clear either if he’s got some of his other assets being looked at either. Personally, if I were him, I’d sell off Liverpool but that’s just me… Anyway…either way, the media needs to cool down already.
Thanks for your astute comments as always EP.
We agree. The media is jumping to conclusions and sending the public in a direction that is only one of many, many possible outcomes.
The group that are reporting this story are the same wacky bunch that barged in to Koivu’s hospital room after his eye was nearly carved out. Bright flashing cameras are just what the hospital intended when they gave him a private room, shades and security.
That said, they are in the business of selling newspapers, in an age where newspapers are on the decline big time.
Is the Journal the only ones running with this story? Probably not, so it’s not entirely fair to single them out, but they are often accused of being irresponsible or a little overzealous.
On the flip side, this story can provide a distraction to the team’s crappy play of late!
Doug McLean, who is pretty well connected with the highest level of NHL circles, mentioned last night that 20% of Les Canadiens was on the market over three months ago.
Nothing is ever sold until all the papers are signed, obviously, but it is just as “irresponsible” to flat out characterize the news and speculation as being completely erroneous, as it is to assume the sale is forthcoming.
George Gillett has a huge payment to face (over $300 million) soon in regards to the financing of his Liverpool interest. His partner in the venture is openly seeking investors for his interest in the Dallas Stars. It isn’t a stretch at all to assume that Gillett, (whether he wanted to or not) would be looking to sell all or part interest in the Habs.
…also, at such a critical juncture of the season, with all the distractions surrounding the team, if there was no substance to the rumours Gillett, Boivin, and Gainey, would all be VIGOROUSLY DENYING THE RUMOURS.
None has come forth to offer a flat out denial or take the media to task about the information they have distributed.
Hello Kyle,
Your example of the Koivu situation is a good reminder to us all about the disgusting lengths the Montreal media will go…in that case, jeopardizing the long term health of a player.
The story may have been a distraction but not a positive one especially with 10 crucial games left in the season. One had a sense that this was a gleeful piling-on of negative news.
I single out one source because they carried one possibility to such an extreme including naming possible buyers.
Rob,
Before your characterize my article as irresponsible, I suggest that you read it!
I never said that the story was “completely erroneous”.
Let me help you get started. I wrote: “Underlying all the rumors and speculation, there is a legitimate sports business story”
And in your next comment you say that there have been no denials. My goodness! Please read.
Here’s what Gainey said “I didn’t hear that the hockey team was being sold. Have you?”
In fact Boivin’s statement was a response to speculation that the team was already for sale. He denied that it was and gave the reason for the speculation.
As far as the bombastic Doug McLean being your trusted source of hockey news, maybe thats one reason for some of the bizarre comments.
Doug McLean is in the loop as far as franchise sales are concerned. He has been the main guy in a couple of startup/relocation franchises, and was part of the latest bid for the Tampa Bay operations. He had no reason to throw the comment out if it wasn’t true to the best of his knowledge.
If Gillett is hiring finacial advisors “BMO in CANADA” to consider “options to his present holdings” what do you think that would mean? As far as I know, he has NO OTHER SIGNIFICANT HOLDINGS in this country outside of Les Canadiens and their associated assets. Considering that he currently OWNS THE VAST MAJORITY OF THE TEAM, the other “options” would presumably involve owning LESS OF THE TEAM, or NONE OF IT.
The fact that the information has become public and was supported by the statement of Pierre Boivin amounts to putting up a FOR SALE sign. That way Gillett can wait for interested parties to contact him, rather than calling around hoping to find someone who is interested. How else would you make public the availablity of the franchise?
I don’t see the media as being particularly “irresponsible” for highlighting the information and looking for clarification. If your neighbour told you he was concerned about his financial situation and was having his house appraised, you could reasonably conclude that it would be a good time to make him an offer if you were intersted in the property.
Doug McLean has no reason to make other outrageous comments, but it doesn’t stop him from doing it.
BMO is not the only company hired to evaluate Gillett’s holdings. Six companies in total in a variety of jurisdictions will make reports to Gillett.
In Canada, Gillett has an entertainment company in addition to the Canadiens that is part of the review.
Just because you and La Presse can only imagine one outcome of the review, it doesn’t mean that there aren’t others.
To report it as a done deal is irresponsible.
There has been a denial from Boivin, one from Gainey, and another from Gillett himself.
From Gillett:
“It got reported … that I was selling assets, as opposed to estate planning. Even when you think you’re doing it right, it gets distorted. There is no story yet. We’ll find out when they give us the reports what it is. My guess is it’s unlikely that you will see any short-term sales. You may see a recapitalization here or there, we may bring in a partner or two. But I think it’s unlikely you will see any asset sales.”
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