George Gillette reached a deal to sell his 80% share of the Montreal Canadiens back to members of the Molson family for a reported $540 million yesterday. The deal still requires the approval of the NHL.
The Molsons have bought and sold the Habs several times over the past half century or so. In fact, Gillette bought the team from the first family of Canadian beer in 2001 for $180 million.
Pardon?
The Molsons are one of the richest and most successful business families in North America. How did they earn that reputation making deals like this? Now I am sure that there are other factors at play, but how do you sell an asset for $180 million and buy it back eight years later for nearly three times the price? I am in no position to question the Molson business acumen (or anyone else’s for that matter), but that doesn’t seem to make any sense to me.
Gillette, on the other hand, walks away with a healthy profit estimated at about $275 million when all the debts and liabilities are taken into account. Not a bad return for eight years of work (if you can call being in charge of the greatest sports franchise in the world work).
As a Canadiens fan, and in a time of such economic uncertainty, wouldn’t I rather have Gillette and his ability to turn a profit in charge of my team?
