[newfangled]

Wow. This totally does sound too good to be true.

I'm loving the downtown arena and training facility comments, though.

[Lyle]

Starting to look like a no-brainer. What's the hesitation?

[CMD UW]

Awesome....just awesome.

[feepa]

If Katz buys the team, and wants to put up an arena downtown, he will easily skip over all the "build it somewhere else then downtown" crowd that seems to be out there... the "downtown downer" group I like to call them... or "suburbian sissies" lol...

[Coldrsx]

^he did mention that he would build it downtown "only if the people of edmonton want it there"

[Coldrsx]

Oilers to strike it rich?
July 24, 2007

Kevin Lowe could be ready to spend like his mentor Glen Sather.

( EDMONTON (CP) -- Daryl Katz promises to spend the maximum under the NHL salary cap and help build a new arena if his bid to buy the Edmonton Oilers is approved.

The Edmonton billionaire, in his first public comments since making his third attempt to buy the NHL team, explained his motives in a statement Tuesday.

"To be clear, I am committed to building a winning team here in Edmonton and I would play to the salary cap every year to help make sure that happens," the pharmaceutical mogul said in the release.

"I am also prepared to make a significant additional investment of time and money towards the development of a new downtown arena facility for the team and the city if that's what the people of Edmonton want."

Katz, owner of the Rexall Pharmacy chain, is believed to have put up more than $170 million in his latest bid. Previous offers of $150 million and $145 million were made to the board of directors but were rejected.

The Oilers are currently owned by 34 investors who bought the NHL team in 1998.

"They did a great thing when they came together to buy the team and keep it in Edmonton," said Katz. "They have maintained a real community feeling ever since, and just over one year ago they came agonizingly close to bringing the Cup back to Edmonton. As an Edmontonian and as a fan, I'm grateful for everything they've done. As an owner, should that come to pass, I intend to ensure their contribution is recognized and remembered.

"At the same time, I know there are a number of people within the ownership group who would like to exit their investment and pass the torch to a new generation of leadership. I want to provide that leadership while preserving the great Oiler traditions and maintaining a strong sense of community."

Katz is listed by Forbes magazine as the 486th richest man on the planet. Last year his net worth totalled $1.6 billion.<.

"If I'm successful in acquiring the team I will be more than happy to make myself available to the media to answer your questions directly," Katz said in finishing. "There is no great mystery in any of this, other than the sound business practice of trying not to negotiate a transaction in public. To that end I have offered to meet with all of the owners privately to further explain my offer and answer their questions.

"I've had several productive discussions already and look forward to others in the weeks ahead."

[sync]

Starting to look like a no-brainer. What's the hesitation?

apparently some of the current owners are dragging their feet for numerous reasons.

[chuber]

Anyone listen to Brian Hall on ched about 30 minutes ago?

First off I can't stand the guy (Hall) and was just listening to see if I could get any more info on the letter. But all he was doing was bashing the letter and Katz.

He said things like "oh wow, he is going to spend the maximum salary cap, oh wow, like the current owners aren't already doing that...nothing new here folks" (now my understanding was they haven't been spending at the cap, but were planning on it this year, but I could be wrong)

And he also laughed at the part about not trying to negotiate a transaction in public and said he shouldn't be hiding from the media and just meet them now and answer questions now.

I know Hall loves the current EIG (like most people in Edmonton) but the way he talked about Katz and the letter wasn't very good imo. I'm sure he will start ass kissing the second Katz actually does buy the team. I hope Katz heard this and if/when he does become owner he refuses to do any interviews with Hall. lol

After re-reading the letter he said he had to go to a commercial break because he couldn't stand to deal with the letter any more and needed a break. lol

[chuber]

apparently some of the current owners are dragging their feet for numerous reasons.

If you own something like the Oilers are you going to sell it in a split second just because the guy making the offer has more money than you and seems like he is going to do a good job as owner? Especially when you didn't actually have them up for sale in the first place? Of course not. A transaction this size (and involving so many owners) is obviously going to take time.

[Hardhatdan]

SWEET BABY JESUS ON A CRACKER SELL SELL SELL.

Oh for all that holy sell

[Xelebes]

^holy crap...im shopping at rexall from now on.

ARP Pharmacy and IDA are owned by Katz Group. I know ARP sells pop really cheap. Or did until a few weeks ago. Still cheaper than most places still, though.

[sync]

oh noes!

seems some members of the EIG are more interested in looking out for themselves rather than thinking about the community - not surprising, and i highly doubt they will match katz committments.

http://edmontonsun.com/Sports/Oilers/2007/07/25/4366282-sun.html


"This column believes that Katz, at this moment, has no better than 33% of the 66% he requires to own his hometown hockey team."

"I'm very surprised. It's the first I've heard of it," said Larry Makelki, the Lloydminster oil man who, along with friends in the area, was the key for Cal Nichols to make it all come together and save the Oilers.

Makelki said he can't speak for anyone else, but he said he's definitely voting to keep his shares.

"You betcha," he said.

MINDS WON'T BE CHANGED

Ron Hodgson said he and most of the investors he's talked to feel the same way and aren't likely to change their minds after the latest volley.

"I just don't think there's an appetite to sell the team," he said.

"I think the people who invested in the Oilers did it for all the right reasons and are intending to keep their shares for all the right reasons. In my opinion, it's not close at all," he said of what the vote would be if taken today.

Certainly the investors aren't hurting for money. Most of them have done very well in their businesses in the same stretch they've invested in the hockey club, thank you very much. And most of them have enjoyed being involved.

But Katz clearly has had some bites.

Bruce Saville, one of the largest investors, confessed "I'm on the fence right now."

Saville said he liked the sound of one part of Katz statement.

"I'm delighted to hear the part about the arena for the campus. I'm on the board at the U of A," said Saville. "I'd like to see it beside the Saville Centre and Foote Field."

Saville also said if Katz did buy the team he thinks the Rexall owner would be a good fit for the Oilers.

"I know Daryl Katz a little bit. He's an honourable man, a good Edmontonian and a good businessman. If the decision was to sell, I'm confident he would be a good owner."

[Coldrsx]

^biding time...they are holding out for a slightly better offer IMO.

[CMD UW]

/\ this is a major business transaction, of course it will take time. However, all Katz needs is 2/3 in support.

[Edmonchuck]

You never ever ever ever never ever negotiate a transaction of this magnitude in the media.

They can say what they want, but everyone has a price.

[Coldrsx]

interesting interesting interesting...

as an Oilers season ticket holder, i just was asked to do a survey on "the ownership of the oilers"........with specific questions about "should 1 owner or a group own the team" etc.....

[Coldrsx]

also specific questions about a downtown rink....:>

[Spencer]

:previous: In the survey, how were the questions worded. As we all know you can ask questions in different ways to solicit difffernt responses. I also fear that the EIG is asking season ticket holders that question about the ownership situation in a way that season ticket holders will try to respond without offending the EIG and therefore not getting a truthful response.

[Coldrsx]

^basically :


how has the EIG done ?

1-5 with 1 being very poor 5 being amazing kinda thing...

it was very objectively done

[Hootch]

I'm very grateful they saved the team, but not too impressed with them crying poor while enjoying huge profits. 3.5/5

And get rid of the Oilers Gestapo!

[Coldrsx]

^crying poor with huge profits????????

hardly...their ROI will only be made through appreciation of the team, not year over year dividends.

[feepa]

Opening Statement:

Edmonton Oilers Customer Survey

As a valued season ticket holder, the Edmonton Oilers Hockey Club is interested in gathering your thoughts and opinions regarding the Oilers Ownership Group.


In 1998 a group of 38 investors joined together and purchased the Edmonton Oilers Hockey Club. The Club was purchased after ATB took over from the former owner Peter Pocklington. Led by Cal Nichols, the Edmonton Investors Group Ltd (EIG) purchased the Hockey Club to ensure it remained in Edmonton; EIG is currently the largest ownership group in the NHL.


All survey responses will be collected and analyzed by Banister Research to ensure the confidentiality of your feedback and the objectivity of the analysis. All information will be reported in aggregate form, responses will NOT be reported in a manner that identifies any individual.


Your participation is voluntary and all the information you provide will be protected under the Provincial Freedom of Information and Protection of Privacy Act.


At the end of the survey, you will be eligible to enter to win a gift certificate for $100 worth of Oilers’ merchandise.

Questions:

1. Please indicate your level of agreement with each of the following statements using a scale of 1 to 5, where 1 means "strongly disagree" and 5 means "strongly agree".

a) It is important that the Edmonton Oilers Hockey Club is locally owned.

b) The Oilers ownership group fosters the Edmonton Oilers Hockey Club as a community team.

c) I think the Edmonton Oilers should be owned by a group of individuals, rather than a single owner.

d) The Oilers ownership group does a good job of communicating with Oilers fans.

e) I think the Oilers ownership group manages the Oilers organization well.

f) The Oilers ownership group is working hard to build a competitive team.

g) The Oilers ownership group members are strategic thinkers.


2. For the following issues, please indicate how important each should be to the ownership of the Edmonton Oilers Hockey Club. Use a scale of 1 to 5, where 1 means "not at all important" and 5 means "extremely important".

a) Acquiring marquee players for the Hockey Club.

b) Instituting a 'green' plan for the organization. (ie reducing power usage, recycling)

c) Building a new arena.

d) Having a charitable foundation to support community organizations.

e) Presenting marquee events (ie Heritage Classic, All Star Game, NHL draft, etc)

f) Providing the "best" game day entertainment experience for game attendees.

3. Of the following issues, which should be priorities of the Hockey Club's ownership over the next year? Indicate the top 3 priorities by using a "1" for top priority, a "2" for the second priority, and a "3" for the third priority.

a) Acquiring marquee players for the Hockey Club.
b) Instituting a 'green' plan for the organization. (ie reducing power usage, recycling)
c) Building a new arena.
d) Having a charitable foundation to support community organizations.
e) Presenting marquee events (ie Heritage Classic, All Star Game, NHL draft, etc)
f) Providing the "best" game day entertainment experience for game attendees.

4. What else should the Edmonton Oilers ownership group focus on?

5. Overall how satisfied are you with the Edmonton Oilers ownership group? Use a scale of 1 to 5 where 1 means "very dissatisfied" and 5 means "very satisfied".

5a. Why did you answer in that way?

6. Do you have any other comments about the Edmonton Oilers ownership group?

[adeep88]

^crying poor with huge profits????????

hardly...their ROI will only be made through appreciation of the team, not year over year dividends.

They made 6M back in 2003-2004, when the dollar was much lower.

They were 7th in league revenue last year, and paid out in revenue sharing (2.5M USD)

They made somewhere between 15-25M in 2005-2006.

Last year, despite missing the playoffs, 7th in revenue (5th highest avg ticket price), and as mentioned, paid out 2.7M USD into revenue sharing

They didn't make big profits in earlier years, but they did have a budget of 37M Canadian dollars back in 1998. This year, it's about 10M CDN higher.

http://www.mc79hockey.com/?p=2714#more-2714

[Coldrsx]

^after how many yrs of loses...

[christopherj]

^after how many yrs of loses...

None, I believe.

If you do some digging - Cal Nichols has been quoted as saying the team has always, at worst, broke even (exception being the strike year).

[christopherj]

None, I believe.

If you do some digging - Cal Nichols has been quoted as saying the team has always, at worst, broke even (exception being the strike year).

To offer up a reference - http://www.mc79hockey.com/?p=2714#more-2714 (which provides references to various newspaper articles with quotes from Cal Nichols):

[adeep88]

Opening Statement:

Edmonton Oilers Customer Survey

As a valued season ticket holder, the Edmonton Oilers Hockey Club is interested in gathering your thoughts and opinions regarding the Oilers Ownership Group.


In 1998 a group of 38 investors joined together and purchased the Edmonton Oilers Hockey Club. The Club was purchased after ATB took over from the former owner Peter Pocklington. Led by Cal Nichols, the Edmonton Investors Group Ltd (EIG) purchased the Hockey Club to ensure it remained in Edmonton; EIG is currently the largest ownership group in the NHL.


All survey responses will be collected and analyzed by Banister Research to ensure the confidentiality of your feedback and the objectivity of the analysis. All information will be reported in aggregate form, responses will NOT be reported in a manner that identifies any individual.


Your participation is voluntary and all the information you provide will be protected under the Provincial Freedom of Information and Protection of Privacy Act.


At the end of the survey, you will be eligible to enter to win a gift certificate for $100 worth of Oilers’ merchandise.

Questions:

1. Please indicate your level of agreement with each of the following statements using a scale of 1 to 5, where 1 means "strongly disagree" and 5 means "strongly agree".

a) It is important that the Edmonton Oilers Hockey Club is locally owned.

b) The Oilers ownership group fosters the Edmonton Oilers Hockey Club as a community team.

c) I think the Edmonton Oilers should be owned by a group of individuals, rather than a single owner.

d) The Oilers ownership group does a good job of communicating with Oilers fans.

e) I think the Oilers ownership group manages the Oilers organization well.

f) The Oilers ownership group is working hard to build a competitive team.

g) The Oilers ownership group members are strategic thinkers.


2. For the following issues, please indicate how important each should be to the ownership of the Edmonton Oilers Hockey Club. Use a scale of 1 to 5, where 1 means "not at all important" and 5 means "extremely important".

a) Acquiring marquee players for the Hockey Club.

b) Instituting a 'green' plan for the organization. (ie reducing power usage, recycling)

c) Building a new arena.

d) Having a charitable foundation to support community organizations.

e) Presenting marquee events (ie Heritage Classic, All Star Game, NHL draft, etc)

f) Providing the "best" game day entertainment experience for game attendees.

3. Of the following issues, which should be priorities of the Hockey Club's ownership over the next year? Indicate the top 3 priorities by using a "1" for top priority, a "2" for the second priority, and a "3" for the third priority.

a) Acquiring marquee players for the Hockey Club.
b) Instituting a 'green' plan for the organization. (ie reducing power usage, recycling)
c) Building a new arena.
d) Having a charitable foundation to support community organizations.
e) Presenting marquee events (ie Heritage Classic, All Star Game, NHL draft, etc)
f) Providing the "best" game day entertainment experience for game attendees.

4. What else should the Edmonton Oilers ownership group focus on?

5. Overall how satisfied are you with the Edmonton Oilers ownership group? Use a scale of 1 to 5 where 1 means "very dissatisfied" and 5 means "very satisfied".

5a. Why did you answer in that way?

6. Do you have any other comments about the Edmonton Oilers ownership group?

What a biased survey

[sync]

i have heard that only 15% of the EIG is in favour of selling to katz at this time.

guess we'll have to see if this holds true.

[hilman]

Looks like Penner is coming to e-town, hopefully he will do better than the last forward the Ducks sent us :)

[Coldrsx]

^haha........finally starting to like getting season tickets again

[feepa]

http://www.sportsnet.ca/hockey/article.jsp?content=20070804_114148_4788

Board to vote on bid Tuesday
August 04, 2007


http://www.sportsnet.ca/images/nhl/edm/team_bench_hor.jpg
Should the bid be approved, the Oilers may be playing in a new arena in the
near future. (File)

Sportsnet.ca -- Owners of the Edmonton Oilers will meet on Tuesday to vote on the latest bid by Canadian billionaire Daryl Katz to purchase the team.

Katz, owner of the Rexall Pharmacy chain, is believed to have put up more than $170 million in his latest offer after previous bids of $150 million and $145 million were rejected by the board of directors. In order for the bid to be accepted, Katz needs 66.6 per cent of the vote. It is expected the board will reject the latest offer as well.

Following Tuesday's meeting, the ownership group is expected to hold a press conference to discuss the decision.

Katz released a statement last month outlining his motives for wanting to purchase the team, going as far as promising to spend the maximum under the NHL salary cap and helping to build a new arena if his bid is approved.

"To be clear, I am committed to building a winning team here in Edmonton and I would play to the salary cap every year to help make sure that happens," the pharmaceutical mogul said in the release.

"I am also prepared to make a significant additional investment of time and money towards the development of a new downtown arena facility for the team and the city if that's what the people of Edmonton want."

The Oilers are currently owned by 34 investors who bought the NHL team in 1998.

"They did a great thing when they came together to buy the team and keep it in Edmonton," said Katz. "They have maintained a real community feeling ever since, and just over one year ago they came agonizingly close to bringing the Cup back to Edmonton. As an Edmontonian and as a fan, I'm grateful for everything they've done. As an owner, should that come to pass, I intend to ensure their contribution is recognized and remembered.

"At the same time, I know there are a number of people within the ownership group who would like to exit their investment and pass the torch to a new generation of leadership. I want to provide that leadership while preserving the great Oiler traditions and maintaining a strong sense of community."

Katz is listed by Forbes magazine as the 486th richest man on the planet. Last year his net worth totalled $1.6 billion.

"If I'm successful in acquiring the team I will be more than happy to make myself available to the media to answer your questions directly," Katz said in finishing. "There is no great mystery in any of this, other than the sound business practice of trying not to negotiate a transaction in public. To that end I have offered to meet with all of the owners privately to further explain my offer and answer their questions.

"I've had several productive discussions already and look forward to others in the weeks ahead."

-- With CP Files --

[Harrison]

Why reject the offer? It'll benefit the Oilers, the fans, and the DOWNTOWN immensely! :banana:

[feepa]

something about pride and joy of ownership?

[christopherj]

something about pride and joy of ownership?

If the dollar falls, the cap keeps going up, the government tells them to fund the arena themselves, another cash call is required, something tells me they might not be talking about the pride and joy of ownership as much.

To be honest, with Katz they could have all of the benefits of ownership, without the risks.

[Harrison]

But wait, there's more!
:previous: :previous:
With the Katz Ownership offer, you'll get a dose of a billion-plus dollars absolutley free! No more long fundraising schemes and tedious campaigning to get government money!
Now Oilers Investors Group, call Darryl Katz now and accept this once-in-a-lifetime chance at hockey heaven!:cheers:

[Jasper and one o nin]

I dont know how to set up a poll on here, (tried) but someone who knows how should set one up.. Should the EIG sell the Oilers to D Katz, yes, no?

[Coldrsx]

yes...yes...yes

[feepa]

I dont know how to set up a poll on here, (tried) but someone who knows how should set one up.. Should the EIG sell the Oilers to D Katz, yes, no?

A similar poll was done on oilfans.com

http://oilfans.com/forum/index.php?t=msg&th=29252&start=0&rid=367&SQ=39d3bf5327e349b1108cde11b860b971

[Coldrsx]

Oiler owners say no to Katz bid
Bill Mah, edmontonjournal.com
Published: 1:21 pm

EDMONTON - Not only did the Edmonton Investors Group rebuff a bid to buy the Oilers from billionaire Daryl Katz, but they said in no uncertain terms the team is not for sale.

"This morning, our shareholders voted resoundingly to reject this offer," said Cal Nichols, chairman of the 33 members of the owners' group who met this morning.

"The second thing we did this morning was we had a motion and a vote and declared the Oilers were not for sale.
Edmonton billionaire Daryl Katz, whose $185 million offer for the Edmonton Oilers has been rejected by the owners.View Larger Image View Larger Image
Edmonton billionaire Daryl Katz, whose $185 million offer for the Edmonton Oilers has been rejected by the owners.
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"This is not about dollars. This is about Edmonton. An ownership group is best-suited for Edmonton and the Oilers."

The group received a formal offer reported at $185 million on July 11 from the Katz Group, Nichols said.

But after tax considerations, "capital adjustments" and possible employee severance liabilities, the figure would actually fall closer to $160 million, Nichols said.

It was the third attempt for the Edmonton owner of the Katz Group drugstore conglomerate to buy the club.

In April, he came forward with an offer of $145 million. He made a second pitch to the board of directors to buy a majority of shares for $150 million, then went straight to the shareholders with his latest offer.

The reclusive billionaire issued a statement on July 24 declaring he would not only invest in a new downtown arena, but that he would build a winning team by spending as much as the NHL's salary cap would allow.

At a news conference, Nichols said the current owners are already taking steps to do those things.

He said the current owners will keep the team competitive and spend the maximum amount for players "when the opportunity presents itself."

The Edmonton Investors Group was the first to champion a downtown arena in October 2005, he added.

Nichols said Katz's attempts to buy the team have caused "collateral damage" and he hoped the outright refusal to sell brings the team needed stability.

"I hope that this, at least for the near term, puts an end to the offer thing because this has been a bit of a circus for four months."

bmah@thejournal.canwest.com

Journal staff writer Bill Mah will have a full story on the Oilers offer in Wednesday's Journal.




© Edmonton Journal 2007

[sync]

the EIG better keep this team competitive in ALL ways - that means spending to the cap, and securing a new arena at least.

[Hootch]

This sucks. I guess we're aiming to be the Chicago Cubs of hockey. Woo!

[IKAN104]

There's no reason to think things would be any better under new ownership. The EIG is spending up to the cap. The team is profitable. And they are planning to build a new arena downtown.

The only thing is if Katz owned the team we wouldn't have to worry so much about who pays for the arena.

[Harrison]

There's no reason to think things would be any better under new ownership. The EIG is spending up to the cap. The team is profitable. And they are planning to build a new arena downtown.

The only thing is if Katz owned the team we wouldn't have to worry so much about who pays for the arena.

Exactly!

[christopherj]

There's no reason to think things would be any better under new ownership. The EIG is spending up to the cap. The team is profitable. And they are planning to build a new arena downtown.

FWIW:

- The EIG didn't spend to the cap last year, and is still $5 million off this season. This isn't to say that spending to the cap would make them a better team - just that they have NOT done so since the cap was implemented.

- There is no commitment to spend to the cap unless they are winning. But do they consider that they are not winning because they are not spending to the cap? (honestly, I wonder if the impression that the EIG is cheap affects the team getting free agents...)

- Planning to build a new arena downtown. Very good. But they need to finance it like Katz was willing to as well.

[IKAN104]

They may not have spent to the cap but they've indicated that they are willing and able. And isn't that what matters?

As for the arena funding, you are basically saying what I said as well. The funding with the EIG is much more uncertain.

[Jasper and one o nin]

‘Ownership group best for Edmonton, Oilers’
Nichols says investors group will do what it takes to build winning team and new arena
BILL MAH
EDMONTON
Not only was billionaire Daryl Katz offering $185 million to buy the Edmonton Oilers, he was prepared to throw in $100 million towards a new arena. It still wasn’t enough. The Edmonton Investors Group rejected Katz’s offer Tuesday and formally declared the team is not for sale.


“This morning, our shareholders voted resoundingly to reject this offer,” said Cal Nichols, chairman of the 33-member owners’ group who met Tuesday.


“The second thing we did this morning was we had a motion and a vote and declared the Oilers are not for sale,” Nichols said.


“This is not about dollars. This is about Edmonton. An ownership group is bestsuited for Edmonton and the Oilers.”


The group received a formal offer of $185 million on July 11 from the Katz Group, Nichols said.


But after capital adjustments and tax considerations needed to convert the offer to a per-share value and the payout of possible employee severance liabilities, the bid would actually fall closer to $136 million, Nichols said.


But a source close to Katz told The Journal there was more on the table, namely a conditional offer to help replace aging Rexall Place with a new rink.


“Under the right circumstances, Daryl is prepared to invest on the order of $100 million towards a new building,” Katz Group spokesman Josh Pekarsky said.


The offer, which hinged on Katz buying the team and the public supporting a new arena, died when the EIG rejected Katz’s bid. It’s the first time a specific dollar amount has been attached to Katz’s public offer to invest in a new arena.


According to a study commissioned by Northlands, which operates Rexall Place, the arena can be expanded and modernized for $250 million. A ninemember arena feasibility committee is investigating the merits of a new rink, possibly downtown.


Mayor Stephen Mandel has told The Journal that Edmonton taxpayers will not foot the bill for a new downtown arena, roughly forecast to cost about $500 million.


He was unavailable for comment Tuesday, but a spokeswoman said his comments stand.


It was the third attempt by the Edmonton owner of the Katz Group drugstore conglomerate to buy the club.


In March he started approaching the investors about the possibility of buying the team. He came forward with an offer of $145 million. He made a second pitch to the board of directors to buy a majority of shares for $150 million, then went straight to the shareholders with his latest offer.


Katz issued a brief statement Tuesday, saying he still backs the Oilers financially and personally.


“Clearly, I’m disappointed that the ownership group has elected not to proceed with a sale but I accept their decision and wish them well,” a statement attributed to Katz said.


“As an Oilers fan and the franchise’s largest corporate sponsor I will continue to be a major supporter of the team.”


Katz would welcome a serious proposal from the investors’ group to sell the team, but he does not intend to make another offer, his spokesman Pekarsky said.


Katz has no desire to buy another NHL team, he added.


The reclusive billionaire issued a statement on July 24 declaring he would not only invest in a new downtown arena and training centre, but that he would build a winning team by spending as much as the NHL’s salary cap would allow.


At a press conference, Nichols said the current owners— who came together in 1998 to keep the team in Edmonton — are already taking steps to build a winning team and develop a new arena.


He defended the investors’ track record of putting money back into charities and the community, its role as stewards of the team, and said the idea of large ownership groups is the trend in professional sports, citing the Nashville Predators, San Francisco Giants and Milwaukee Brewers.


“We’ll keep the team competitive, spend to the cap if and when the opportunity of winning presents itself, and we’ll lead and invest in a new arena,” Nichols said.


The investors group was the first to champion a downtown arena in October 2005, he added. A committee, including Nichols, is exploring the idea of a new arena to report back later in the year. A cash call from the owners could be one way to raise money for a new rink among several other options, Nichols said. “Until we get a recommendation back from the committee later this year, we don’t know some of the answers.”


The investors voted by secret ballot and Nichols declined to elaborate on any dissent within the group at the meeting.


But Nichols did say Katz’s attempts to buy the team have caused “collateral damage” and he hoped the outright refusal brings closure to a vocal debate that has divided the group and the wider community since Katz’s first offer.


“I hope that this, at least for the near term, puts an end to the offer thing because this has been a bit of a circus for four months.”


“The organization needs stability and that’s what we’ve always stood for and that’s going to be our first priority.”


Nichols said rejecting the sale doesn’t mean the door is slammed on a newcomer buying shares in the Oilers from a current owner. “It’s up to the shareholder when and if he wants to sell it,” Nichols said.


“I’ve had a number of inquiries, taps on the shoulder, that said if you need new capital come and talk to me. There’s some very good strategic partners out there.”


Katz is not interested in less than 100per-cent ownership of the team, Pekarsky said.


But the door might still be open for Katz’s future involvement with the development of a new arena.


“I suppose it’s possible that he would have some kind of involvement, but clearly the business case for his involvement is greatly diminished by the fact that he won’t own the team,” Pekarsky said.


Daniel Mason, a University of Alberta professor, who studies the link between cities and sports facilities said in cases where sports team owners get involved in funding facilities, they’re often more interested in the broader development opportunities.


“They’re more willing to invest more money because they can access the revenues that come from the other amenities in addition to the arena,” Mason said.


He said Katz’s $100-million offer may not have been enough to convince Edmontonians to build a new arena if the public had to pay the rest of the cost.

[murman]

The group received a formal offer of $185 million on July 11 from the Katz Group, Nichols said.

But after capital adjustments and tax considerations needed to convert the offer to a per-share value and the payout of possible employee severance liabilities, the bid would actually fall closer to $136 million, Nichols said.


re. the stuff I've bolded, that figure would be mere pennies compared to the quantum of the gross figure. They're really grasping at straws on that one.

[newfangled]

So the $100M towards a new arena was contingent on Katz' purchase of the Oilers. This makes sense, because he'd get ticket/media/merchandise revenues to go along with whatever share of the arena revenues would be his. Fine - it's business.

But what about the U of A training facility? How is a commitement to a university facility affected in any way by whether or not Katz owns the Oilers? I realize that it was probably just thrown in as a carrot to build community support for Katz, but it's not business - it's philanthropy. I don't see why the Oilers should enter in to it.

[ExcaliburKid]

the EIG better keep this team competitive in ALL ways - that means spending to the cap, and securing a new arena at least.

Yep, my thoughts exactly. Now that Katz has Oiler fans and Edmontonians drooling over stacked teams and a sweet new downtown arena, the EIG better not drop the ball. Im getting seriously concerned with the stranglehold Oiler alums have on this team. Its looking very mafia-like to me, and I cant see it ending anytime soon. Dont disappoint me EIG :hahano:

[christopherj]

But what about the U of A training facility? How is a commitement to a university facility affected in any way by whether or not Katz owns the Oilers? I realize that it was probably just thrown in as a carrot to build community support for Katz, but it's not business - it's philanthropy. I don't see why the Oilers should enter in to it.

Where has Katz said he still won't pursue this?

[Midijunkie]

hi there...new to the forum...This is an interesting read regarding this situation...cheers

http://communities.canada.com/edmontonjournal/blogs/sweatsox/default.aspx

Offer sheets; offer sheets
The Edmonton Investors Group plays by its own set of rules and certainly had no obligation to sell the Edmonton Oilers to local billionaire Daryl Katz, that’ s a given.
But some of the self-serving nonsense that has been advanced by board chair Cal Nichols has been more than a bit much. Some of it has been offensive.
The ownership group that Nichols chairs was fashioned from the chaos of the crumbling financial holdings of former owner Peter Pocklington. It was born of necessity.
A decade on, it turns out that not merely group ownership, but this particular group with its own, clubby ‘pick-your-partners’ barriers to entry is the best possible governance structure for the Oilers. The best structure, as defined by the current ownership group, is the current ownership group. Gee, how convenient.
As self-justifications go, this is mostly harmless wind. And the truth is, the EIG has done a good job. The Oilers are a well-run business. But there are other ways to go and the proof is in the numerous thriving franchises around the league led by a single owner.
Like the last two Stanley Cup winners: Anaheim, owned by Henry and Susan Samueli; and Carolina, owned by computer magnate Peter Karmanos.
Pizza boy Mike Illitch seems to do all right in Detroit and so does Ed Snider in Philadelphia. The good times are rolling for Canadiens owner George Gillett —literally. The Canadiens owner just bought a NASCAR team, to go along with his part ownership of Liverpool in the British premiership.
Eugene Melnyk, a single owner, rescued the Senators from the oblivion that former majority partner Rod Bryden spent a decade fruitlessly trying to lead his myriad minority partners out of.
The community argument here against a single owner seems to be rooted in a deeply seated belief in the boogeyman and a distrust of individual excellence. The Oilers had a single owner named Pocklington, who turned out to be a bad man. He broke the fans’ hearts, therefore single ownership is inherently bad.
What childish claptrap!
There’s more than a faint whiff of a smear job in trying to insinuate that Katz, a wildly successful local businessman, U of A grad and philanthropist is Pocklington revisited. But that connection has been made by some members of the media. And that’s wrong. And cheap, besides.
As much as anything else, pro sports today is about brand management. The current group is excellent at it. So, rather obviously, is Katz. In an NHL where Oilers icon Mark Messier’s newly minted leadership award is sponsored by Cold F-X, the synergies between a trans-national drug-store empire and an NHL franchise are obvious.
Which approach is best? Hard to say. Each side has merit. The 40-something Katz, clearly, is younger than the EIG members and on a high-octane roll. That’s bad? He might have injected some welcome fresh ideas and energy into both the Oilers and the NHL. Impossible to know now.
But there was nothing even remotely negative about Katz approaching the Oilers and making them not one, but three offers. And it was disingenuous, if not outrageous for Nichols to suggest otherwise.
Nichols spoke Tuesday about how the four-month give-and-take between Katz and the Oilers had been a “bit of a circus,” and caused “collateral damage.” Puh-leeeeze!
This from a board chair whose GM, Kevin Lowe, mucked about in the payroll of the Buffalo Sabres by signing Thomas Vanek to a seven-year, $50-million offer sheet. Then raided the Stanley Cup champion Ducks by signing first-year player Dustin Penner to a five-year $21.25-million contract, handing the player a tenfold raise?
Collateral damage? You betcha. And lots of it. Just ask Buffalo GM Darcy Regier or Anaheim manager Brian Burke.
Hey, just business, said Lowe. Just so.
And so was Katz’s $185-million offer just business. An offer, by the way, that woud have handed all 33 members of the EIG handsome returns on their investments. Collateral damage? That’s laughable. Unless you believe the supposedly sainted EIG should be left alone to run the Oilers without being subject to grubby business realities like purchase offers.
Nichols and the EIG did the city a major service in rescuing the Oilers and keeping the franchise viable over the last decade. But there was and is more, much more, than pure altruism at work there.
There is a major ego rush associated with being an NHL franchise owner, even a part-owner. And keep in mind that all the Oilers owners, including Nichols, have collectively enjoyed that cachet and clout, been part of an important and exclusive little club in this city by, individually putting up a tiny fraction of the $185 million Katz was prepared to pony up to buy out the Old Boys’ club.
And if Edmonton would have been a diminished city without the Oilers, then it would have hurt the businesses the EIG members run in their real lives, as well. Saving the Oilers helped their enterprises, as well. Which is a perfectly legitimate justification for their actions. It just isn’t a qualification for secular sainthood.
In the end, apparently, that ego rush, that enlightened self-interest, the civic clout that comes with the territory, is worth well more to the EIG members than Katz’s final offer.
Fair enough. It’s their club, after all. And an exclusive, very private one, at that.

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Posted Wednesday, August 08, 2007 9:50 PM by John MacKinnon | 0 Comments
Filed under: Oilers ownership

[SHOFEAR]

I lost a ton of respect for the EIG and especially Cal Nichols over this.

The EIG was supposed to be a ownership group that got involved because of their love for the city. Nobody signed up with the intention of making money each year but now that the Oilers are one of the most profitable teams it's suddenly no longer about doing what is best for the city/Oilers. It was time for a local billonaire to take this team to the next level and the EIG denied us that chance.

Most unfortunate was Cal Nichols interview on Prime Time Sports where he flat out lied about the situation. Calling it a circus was an un called for slam against Katz, ironically the only circus part was the EIG's embarrasing response. Most fustrating he rationalized that by saying Edmontonians have no clue what's happening and he feels the media and Edmontonians believed Katz offer had to do with financial problems with the EIG and the team. The exact opposite is true, every person has made the connection that Katz's offer shows the value and strength of the Oilers...something that was not the case a few years ago.