Canadiens a good investment for Quebec pension fund?

Should Quebec's beleaguered pension fund manager consider buying the province's beleaguered NHL team?

That's the suggestion being floated on the floor of the provincial legislature by the Parti Québécois, which is arguing that the Caisse de depot et placement du Quebec should look at investing in the Montreal Canadiens, a team that is still among the NHL's most valuable clubs, despite the recent struggles on the ice.

"Do the finance minister and the premier prefer to invest in airports in London that go bankrupt rather than invest in the Montreal Canadiens?" PQ Leader Pauline Marois recently asked Premier Jean Charest.

Charest refused to be drawn in, replying there was no evidence the Canadiens would be leaving Montreal.

The Canadiens aren't officially for sale, but majority owner George Gillett has retained the services of financial firms to examine his options for selling his various assets.

Speaking at a sports business conference last week, the American businessman said that a recapitalization is likely to happen, but no short-term sale of assets.

The Canadiens are in danger of missing the playoffs in their centennial season, but are still among the most fiscally successful clubs in the NHL. In October, Forbes valued the team at $334 million US — third highest in the league behind the Toronto Maple Leafs ($448 million) and New York Rangers ($411 million).

Gillett bought 80.1 per cent of the Canadiens and the arena, the Bell Centre, in 2001 for $181 million with the help of $140 million in loans from two banks and the Quebec pension fund manager.

There's a precedent for a pension fund manager owning an NHL team, as the Ontario Teachers' Pension Plan holds a large stake in the Leafs and has a seat on its board.

The Caisse de depot et placement has been criticized of late for its lacklustre performance, and chairman Robert Tessier allowed it's "a very good question" whether the organization would be interested in buying a piece of the Habs.

The board would be duty-bound to look at any proposals but the decision would fall to the pension fund managers and president Michael Sabia, he said.

He added that a return on the investment would be "essential."