Source: Neko Sparks bid offering First Nations groups equity stake in Senators

First Nations groups in Canada have partnered with the Neko Sparks bid in a significant way, as the deadline to buy the Ottawa Senators approaches. 

Ahead of Monday’s deadline to purchase the hockey club, a source involved in the bid says the Sparks group has branched off to include First Nations communities in a way that would make them partners in the hockey club as well as a wide range of economic opportunities off the ice. 

A source said this is not a token involvement. “This is giving First Nations Peoples a seat at the table.”

How big an equity stake could be involved for First Nations communities is not clear, but is believed to be more than 10 per cent and includes “real estate, technology and entertainment avenues."

Final bids are expected by Monday and there could be news of the sale announced this week, as early as Wednesday. 

The Senators have been up for sale for several months and the Galatioto Sports Partners investment bank has attracted several serious bids, acting on behalf of the Melnyk estate, in particular the daughters of the late owner Eugene Melnyk, Anna and Olivia. Any sale has to be approved by the NHL Board of Governors. 

Late last week, the ownership bids took a twist when the Remington Group near Toronto, affiliated with actor Ryan Reynolds, let it be known that they would not be vying for the hockey club and the chance to build a new arena in Ottawa because they were denied an opportunity to have an exclusive bargaining window with officials in the nation’s capital. 

Ottawa mayor Mark Sutcliffe said in an interview with Sportsnet.ca that he remained confident the future of the Senators, and potential capital projects connected with them, is bright. 

Toronto magnates Michael Andlauer, Steve Apostolopoulos and Jeff and Michael Kimel, as well as several local Ottawa business people, are among those who have expressed interest in buying the hockey club. 

“It’s really exciting that there are that many people interested in the team and the city,” Sutcliffe said. “I think that’s really validating for Ottawa that there are all those people who want to spend a billion dollars or so on our hockey team and invest in a new arena.

“Having Ryan Reynolds involved in our city would have been exciting, but there are other people who are committed to Ottawa and committed to the team, so we will see how it plays out and we’re ready to work with whoever the new owners are.”

The Neko Sparks bid is intriguing because it presents the potential for a completely different approach to owning an NHL franchise. Based in Los Angeles, Sparks has a vision of becoming the first Black owner of an NHL team and has a consortium behind him composed primarily of people of colour. The group espouses inclusion and diversity, which is why the involvement of First Nations Peoples in Canada is the perfect fit. 

The rapper Snoop Dogg is the best known figure connected to the Sparks group. Now the group believes it has another important element. 

“This would be really big, to see First Nations get an equity stake in a team in the nation’s capital,” a source said. “It’s significant. I look at this bid, with African Americans and the First Nations people in Canada who have been suppressed for a long period of Canadian history, and a successful bid by this group would be a monumental achievement.” 

Even before this news of potential equity involvement of First Nations people, there have been existing land claims involved on the LeBreton Flats land, a potential site of a new arena for the Senators. The land, operated by the National Capital Commission, is traditional Algonquin territory and Indigenous leaders have been outspoken in their concerns about being involved in any potential development here.  

The interesting part of the Sparks connection is that the partnership would go far beyond a payout of money and actually give multiple First Nations communities a seat at the table as far as the Senators and other commercial endeavours. It is not a token involvement, but a capital stake. 

A source says the Sparks group is so flexible in its approach to buying the team that it will include even more First Nations groups down the road if they would like to be involved in the ownership of the team or other ventures related to the arena or other branch businesses.