Senators Used Private Money To Build: MULVIHILL

Remember way back when The Palladium was built? It was built with private money.

Businessman Bruce Firestone had a dream to bring an NHL team back to Ottawa. Firestone’s dream came to fruition in 1990 when he was awarded an NHL team. Financial viability was on thin ice but perseverance and determination won out. In all the excitement, Firestone received no money from the movers and shakers in the municipal, provincial, and federal governments.

Deep pockets are necessary to finance an NHL franchise and Firestone soon found himself barely treading water. Having rejected a $20 million offer to relocate the franchise to Anaheim, the club missed a mortgage payment on the planned new arena. Development fees owed to the city were also missed and shortly thereafter Rod Bryden, founder of Systemhouse, took over ownership of the Senators in 1993.

Build it and they will come. Bryden stood strong building the Palladium in a corn field in Kanata. There were mega plans for both commercial and residential development surrounding the arena. However, all was not well with the financials or the balance sheet and Mr. Bryden had no option but to sell the team.

On August 26, 2003, Eugene Melnyk purchased the Senators along with the arena, known then as the Corel Center, for $93 million. A fire sale.

Following Melnyk’s death on March 28, 2022, businessman Michael Andlauer agreed to buy Senators for an NHL-record $950 million.

The financial encumbrances associated with the Senators, beginning with Firestone winning the franchise in 1990, were privately funded. There was no public money used for the team or the arena.

Fast forward to today. The Senators and the National Capital Commission have reached an agreement in principle to build a new arena at LeBreton Flats. The best of luck to Andlauer with this endeavour, but rest assured there should be no taxpayer funds offered for the development of this arena.

Donna Mulvihill is a community activist and former hospital coordinator

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