OTTAWA – Hockey fans should understand these twists and turns better than most.
Sports bring tremendous emotional highs, and heart-in-mouth setbacks.
Thursday’s news that Ryan Reynolds and his partners with the Remington Group near Toronto have pulled out of the bidding to buy the Ottawa Senators and potentially build a new arena in the city certainly seems to fall into the latter category. A setback. But don’t be too hasty to dismiss the quality of potential future ownership of the Senators.
Let’s see how the next chapter unravels.
According to multiple reports, including an ESPN story by Emily Kaplan that broke the news on Thursday, Chris Batty and the Remington Group, including the Canadian actor Reynolds, were withdrawing their bid, which has a deadline of Monday. The reason they pulled out was a failure to obtain an exclusive 30-day window to negotiate an arena deal with the decision-makers in Ottawa, namely the National Capital Commission and the city of Ottawa.
It’s easy to see why Batty would pursue this path. Buying the hockey team is the simple part of this deal. The more complicated scenario is the arena deal. Is there enough room to build something significant on the six-acre parcel of land in LeBreton Flats, or will the NCC be flexible and expand the footprint? What other interests are involved? How easily could the native land claim be resolved? And what about other land options?
Ottawa mayor Mark Sutcliffe is among those who have suggested there are other suitable sites in the city. One that jumps out is Bayview Yards, just west of LeBreton Flats.
It’s just as easy to see why the Galatioto Sports Partners investment bank handling these bids would decline Remington this exclusive window. How is that fair to the other bids? And if you offered the same privilege to rival bidders Michael Andlauer or Neko Sparks or the Kimel brothers et al., what is the point of the entire bidding process, with its early phases leading up to Monday’s binding bids?
With a financial stake of $1 billion or more involved, commercial builders such as Remington are used to having more control of a negotiation to buy or build.
This process is more like a high-stakes game of poker, without knowing what cards are in the hands of others around the table. At a certain point, a player might decide the risks are too high and opt to fold. That appears to be what happened this week. Remington and Reynolds decided there was just too much uncertainty, despite the fact that all parties have had an opportunity to meet with the NCC, Senators operations staff and Mayor Sutcliffe for cursory discussions and questions. Unless, of course, the Remington fold move is a bluff. A tactic. To cause a stir (try a search under Reynolds today on your favourite social media site).
So, where to from here?
First and foremost, there are still three days until the May 15 deadline. That’s a lot of time in the business world for things to change, for concerns to be resolved. Stay tuned. It ain’t over for Remington and Reynolds until it’s over.
Ask yourself why this story came out when it did, days before the bid deadline, rather than after the fact. It speaks to a chance for resolution.
Not Too Late for Reynolds
We have suggested in this space before, and will say again, that even if Reynolds were not part of the successful bid, there will likely be avenues for him to get involved down the road.
There is no reason to believe all doors are closed to him joining another group, or becoming part of the program once a new owner is in place.
Being flexible seems a wise approach on this transaction.
For example, a source told me Friday that Jeff York, who has been linked to the Remington Group, has kept his options open as far as becoming a local partner in the Senators ownership, even if Remington does not succeed.
York, the brother of former Senators defenceman Jason York, was the longtime CEO of Farm Boy and has made overtures about buying the Senators for years.
Jeff York partnered with other Ottawa-area business interests, including Neil and Shawn Malhotra of Claridge Homes, to help strengthen his bid. Shawn Malhotra was very visible at the Hockey Hall of Fame induction ceremony for Senators icon Daniel Alfredsson.
I don’t know about you, but I think it’s more important to have strong local ownership, at least as part of the operation, than it is to have a celebrity name tied to the bid.
Not sure we can count on Snoop Dogg having an intimate understanding of Ottawa’s quirky, unique marketplace, as much as his brand adds sizzle to the Sparks bid. York and the Claridge people know the market intimately and would be a great addition to any bid.
York wisely met with most, if not all, of the big-time players vying for the team and the option to build a new arena. Plus, there is huge building potential in Kanata, where the Canadian Tire Centre arena sits.
Let’s see how this plays out in the days ahead.
All along, there have been voices of caution, advising us not to get ahead of the story. NHL commissioner Gary Bettman is among those who have implied we should not be blinded by the bright lights of celebrity in this story.
As exciting – and flattering – as it is for Ottawa to get noticed and be sought after by the likes of Reynolds and Snoop Dogg and The Weeknd (aligned with the Kimel brothers and Harlo Group), it was always going to come down to the best overall bid. Celeb or no celeb attached.
To paraphrase former Senators head coach Jacques Martin, trust the “process” and be patient for a good result ahead.
There were strong bids before the news about Remington/Reynolds and there are strong bids today.
The big picture story remains the same. The Senators and their fan base are in for a tremendous stretch of growth as a franchise, on and off the ice.
Thursday’s ripple in the pond doesn’t change that.
