According to La Presse, the Montreal Canadiens owner George Gillett is thinking of selling his NHL franchise. He has asked a firm to study all the financial possibilities related to the future of his team, the Bell Center and the Gillett Entertainment Group. The Habs President Pierre Boivin has confirmed it to La Presse that BMO Capital Markets was asked to evaluate all possible strategies of the Gillett family's properties in Montreal. Boivin states that it could be for capitalization, financial restructuration, new investors or the sale of the enterprise. He also added that they are only at the beginning of the process. The Habs president explains that in this difficult economic period, these advisers will maximize the assets of the company and reorient the financial strategies of the Gillett family if needed. The Gillett family have asked four financial adviser groups for their services in Europe, US and in Canada to establish strategies for all of the Gillett family's business. These businesses include the FC Liverpool soccer club, the Montreal Canadiens and the Bell Center, NASCAR, but also other industries such as the food, ski and golf.
The paper also talked to professor Tom Cannon, a specialist in professional sports economy, and said that if the financial difficulty of George Gillett forces him to sell one of his franchises, it would be the Montreal Canadiens that would be sacrificed. It is always easier to sell the assets that you control. George Gillett only owns half of the FC Liverpool team, but owns 80.1% of the Montreal Canadiens. In addition, there is a clause in his partnership contract with Tom Hicks which prevents him from selling his parts of Liverpool as he wants. Cannon also said that the most profitable franchise between the two is Liverpool which has gained a value of 131% since last year whereas the Canadiens only gained 18% according to Forbes magazine.
Here are the links to the original articles in La Presse :
http://www.cyberpresse.ca/sports/hockey/200903/22/01-839138-gillett-songe-a-vendre-le-canadien.php
http://www.cyberpresse.ca/sports/hockey/200903/23/01-839144-sacrifier-le-ch-avant-le-fc-liverpool.php
The paper also talked to professor Tom Cannon, a specialist in professional sports economy, and said that if the financial difficulty of George Gillett forces him to sell one of his franchises, it would be the Montreal Canadiens that would be sacrificed. It is always easier to sell the assets that you control. George Gillett only owns half of the FC Liverpool team, but owns 80.1% of the Montreal Canadiens. In addition, there is a clause in his partnership contract with Tom Hicks which prevents him from selling his parts of Liverpool as he wants. Cannon also said that the most profitable franchise between the two is Liverpool which has gained a value of 131% since last year whereas the Canadiens only gained 18% according to Forbes magazine.
Here are the links to the original articles in La Presse :
http://www.cyberpresse.ca/sports/hockey/200903/22/01-839138-gillett-songe-a-vendre-le-canadien.php
http://www.cyberpresse.ca/sports/hockey/200903/23/01-839144-sacrifier-le-ch-avant-le-fc-liverpool.php
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