A Mistake that Cost an Investor $242.5 Million Dollars
When Spirepoint’s co-founder, Paul Blacquiere, asked me to write an inaugural article for his site, it gave me an opportunity to talk to a new audience about a subject I am passionate about… helping the great majority of Canadians and Americans not covered by defined benefit pensions plans provide independently for themselves and their families. Twenty years ago I had a plan that seemed likely to work: -I had taken over a small real estate company -Grown it from annual revenues of $350,000 to $120 million in nine years -Bought an expansion team (the NHL’s Ottawa Senators) for $85 million, and -Built a 20,000-seat arena (now called Canadian Tire Centre) for $240 million, which was sitting on a square mile of land (600 acres) that was going up in value, fast. Fate Intervenes But the Canadian dollar decided to go from 90 cents US to 62 cents, and NHL payrolls went from $6.5 million CAD when we purchased the team to $55 million USD (around $86 million CAD) a decade later. The team went bankrupt in 2003 and was sold to its current owner, Eugene Melnyk, for $120 million. Oh yeah, that included the arena and $13 million in playoff revenues sitting nicely in cash on the team’s balance sheet from a long playoff run that year. Read more at http://www.spirepoint.ca/a-mistake-that-cost-an-investor-242-5-million-dollars/