Andlauer’s Senators Buy Included Protection From Dadonov Fallout

During his takeover of the Ottawa Senators earlier this year, Michael Andlauer and his lawyers negotiated a high six-figure indemnification clause to mitigate possible punishment related to the team’s 2021 trade of Evgenii Dadonov, according to an NHL source familiar with the deal points.

The topic sparked league-wide intrigue last week when the NHL docked the Senators a first-round draft pick for trading Dadonov without disclosing specifics of his contract. After the punishment was handed down, Andlauer called out the NHL and the sellers, saying in a press conference that he felt he was misled about the severity of any potential discipline.

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“I knew about it through the due diligence process, and it was basically, from the seller’s perspective, it was really a non-issue,” he said. He then made it clear that he believes the actual punishment is more serious than a “non-issue.”

Andlauer earlier this year bought the Senators for about $950 million from the estate of late owner Eugene Melnyk. The purchase agreement includes a specific section related to the NHL’s investigation into the Dadonov incident, said the person, who was granted anonymity because the details are private. The high-six figure amount, which the sellers agreed to indemnify the buyer in the event of punishment, matches exactly the financial losses that the Vegas Golden Knights claimed to have suffered because of the trade mishap, the person said. The document also says that the Knights were seeking multiple Ottawa draft picks, including a first rounder, as an additional penalty.

It’s unclear if Andlauer intends to file a claim under the indemnification clause. Representatives for the Golden Knights, the NHL and Galatioto Sports Partners, the sell-side bank, all declined to comment. Cassels Brock & Blackwell LLP partner Sheldon Plener, who served as governor of the Senators after Melnyck’s death and oversaw the sale, also declined to comment. Representatives for…