The Ottawa Senators won't spend big money on players anytime soon. Owner Eugene Melnyk said that the team has suffered "substantial losses" of late and that the team's financial situation, as it sits right now, doesn't make it possible for the team to pay the kind of money necessary to bring in the upper-echelon players that the team wants (via Pro Hockey Talk).
Senators’ owner dealt financial blow, team won’t spend big
The Senators will be tied up financially after Ottawa blocked owner Eugene Melnyk’s plans to build a casino.
Phillip MacCallum
Melnyk "On the one hand you have fans screaming 'why aren't you spending this?' Well guess what. We don't have the money for it." #Sens
— AJ Jakubec (@AJonSports) July 9, 2013
Melnyk "I can't spend another 5-6 Million dollars on a player. The revenues aren't there. The team will not be viable." #Sens
— AJ Jakubec (@AJonSports) July 9, 2013
Melnyk has been trying to build a casino that would help offset some of the losses that the team has suffered and allow them to pay higher salaries, but the city put an end to those plans on Tuesday. That leaves Melnyk and the Senators with only two revenue streams -- the team and arena.
Had the casino been built, Melnyk says it would have provided the third revenue stream necessary for the Senators to spend at a high level. Melnyk has also been trying to get the city to help fund renovations to Scotiabank Place, which he says can help the team out, but so far those attempts have been unsuccessful.
Despite the casino setback and comments about financial viability, Melnyk stressed that he has no plans to sell the team or move it. At least for the foreseeable future, the team is staying in Melnyk’s hands and in Ottawa. The team will just continue to focus on young, cheap players and hope that they can do a good enough job with their scouting, drafting and development to compete.
More in the NHL:
See More:
