[Ponza]

Katz bids to buy Oilers
Local Pharmacy billionaire steps up with surprise offer of $145 million for team
Gary Lamphier, The Edmonton Journal
Published: Saturday, May 05, 2007
EDMONTON - Drugstore billionaire Daryl Katz, the reclusive owner of the 1,800-store Katz Group pharmacy empire, has launched a surprise $145-million bid to acquire the Edmonton Oilers.

The all-cash offer by Katz, 45, an Edmonton native and University of Alberta law school grad whom Forbes magazine now ranks among the world's richest men, was made to the 37-member Edmonton Oilers ownership group earlier this week.

Under terms of the offer, disclosed to The Journal late Friday by a source familiar with information shared at the meeting, the Oilers would remain in Edmonton.


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Daryl Katz at the 2003 announcement that the arena at Northlands would be renamed Rexall Place.
Bruce Edwards, The Journal, file
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Cal Nichols, chairman of the Edmonton Oilers ownership group, couldn't immediately be reached for comment.

The offer has been structured as a purchase of the shares of the company that owns the Oilers, the source said, in order to minimize the tax impact on Oilers owners who sell their stakes, and to enhance the value of the bid.

It's not known what additional conditions may be attached to the Katz bid, including whether it is contingent on securing 100-per-cent ownership of the team, or a simple majority stake. It's also not clear how the Oilers' 37 owners are reacting to the offer.

"Some owners want out and would support the sale, and others are resisting. I don't know (what the precise breakdown is)," the source said.

Under the current Oilers owners' agreement, it's believed that any owner who wants out will have his or her shares bought back, based on a value of less than $100 million for the entire team, or well below the value of the Katz bid.

"It (Katz's offer) was presented to the ownership group several days ago ... and they are sort of soaking on it right now. I don't know the split, but I gather there are some who would very much like to be able to take advantage of the offer," the source said.

It's unknown why Katz made his move now. Edmonton Mayor Stephen Mandel recently struck a committee to explore the idea of building a new downtown arena to replace aging Rexall Place where the team plays, but it has barely begun its work. The Oilers' existing lease at Rexall doesn't expire until 2014.

Cost estimates for a proposed new arena have run as high as $500 million, depending on what additional components it might include. Some observers say it could incorporate a hotel, a casino, retail stores and other amenities.

Mandel has said the odds of such a facility being built are slim unless there's private support. Some have speculated the Oilers might even consider combining the value of the team with a new building to lure pension funds or other long-term investors.

Ontario Teachers' Pension Plan holds a majority stake in Maple Leaf Sports & Entertainment, the company that owns Toronto's Air Canada Place, along with the NHL Maple Leafs hockey club, and the NBA's Toronto Raptors.

An OTPP spokesperson recently interviewed by The Journal said the $106-billion fund wouldn't be interested in investing in an Edmonton arena alone, but it might consider investing in an integrated company akin to Maple Leaf Sports.

As for Katz, the source said he "understands" that a new downtown arena funded strictly by the taxpayer is a non-starter and his participation in fundraising may be necessary. "I think he would be prepared, under the right circumstances, to take his share of funding for something like that," the source said.

According to Forbes' annual survey of pro sports franchises, published last November, the Oilers generated operating earnings of $10.7 million US on revenues of $75 million for fiscal 2006.

The club carried one of the lightest debt loads in the NHL, and its franchise value had jumped 40 per cent over the previous two years, to $146 million, good for 19th spot among 30 NHL clubs.

The franchise value estimated by Forbes -- equivalent to $161.7 million Cdn, or $16.7 million above the Katz bid -- was set following the Oilers' surprise appearance in the Stanley Cup finals a year ago, and prior to the Oilers' disastrous 2006-07 season, when the club failed to make the playoffs.

In the process, the Oilers lost several of their marquee players, including all-star defenceman Chris Pronger, who forced a trade to the Anaheim Ducks at the end of last season, and more recently, team icon Ryan Smyth, who was moved to the New York Islanders at the NHL's regular-season trading deadline.

glamphier@thejournal.canwest.com

KATZ FILE

Daryl Katz, 45

Day job: Chairman of Katz Group, which Katz founded in 1996.

Holdings: Katz Group is the seventh-largest drugstore retailer in North America posting annual sales of roughly $6 billion from 1,800 outlets. Katz Group owns seven chains in Canada and two in the U.S. Holdings include Rexall, Guardian IDA, Medicine Shop and Pharm Plus.

That qualifies the privately held drugstore empire as a larger business enterprise than Toronto-based Canadian Tire and Vancouver's Jim Pattison Group.

Why drugstores? Katz is the son of city pharmacist Barry Katz. The foundation of his current business empire can be traced to 1992 when Daryl and Barry Katz opened their first two stores after buying the Canadian franchise right to the Medicine Shoppe.

How his empire grew, in Katz's words: "I knew the business and I felt comfortable in the business. But I was always kind of deal-driven and attracted to the transaction. And my background is legal and finance so one transaction kind of led to the next."

How rich is he? Katz's personal wealth, estimated at $1.9 billion, qualifies him as Edmonton's richest person. Even though his wealth increased by $300 million last year, his ranking among world billionaires slipped from number 486 to number 538 on Forbes magazine's annual listing of the world's wealthiest people.

Business heroes: Michael Dell, Bill Gates and Larry Ellison

Where does he live? Last year, contractors were busily constructing a massive mansion for Katz on the west bank of the North Saskatchewan River, facing Hawrelak Park. The value of the champagne titanium-clad home with its two swimming pools and 11 bathrooms is estimated at $20 million. It is approximately 25,000 square feet in size. The ice surface of Rexall Place, named after Katz's flagship drugstore chain, measures 17,000 square feet.

Sports interests: A tennis buff, Katz cut a deal with Tennis Canada to put the Rexall name on Toronto's national tennis centre in 2003, the same year he purchased the naming rights for Edmonton's local arena. He has also sponsored competitive curling events.

Education: Graduated University of Alberta law school in the early 1980s.

Giving back: Last year Katz donated $7 million to the University of Alberta's faculty of pharmacy. The grant was matched by the provincial government, making it the biggest one-time gift to any Canadian pharmacy school.

Compiled by Jim Farrell

Journal Staff Writer

OILERS HISTORY

1971: Bill Hunter, owner of the highly successful junior Edmonton Oil Kings, agrees to usher a new team into the one-year-old World Hockey Association and the Oilers are born. The ownership group would include several other local businessmen and enterprises, including Dr. Charles Allard and Canadian Cablesystems.

1972: The WHA holds a player lottery in February for the league's first 12 teams and the WHA gets off the ground later that year. The Oilers attract an average of 4,900 fans per game to the dilapidated 5,200-seat Edmonton Gardens.

1974-75: The team moves into the new Edmonton Coliseum (now Rexall Place) and fans are treated to the resurrection of legendary Montreal Canadiens goaltender Jacques Plante, 45, now wearing an Oilers jersey.

1976-77: Vancouver real-estate wheeler-dealer Nelson Skalbania becomes half-owner of the Oilers. Edmonton entrepreneur and car dealer Peter Pocklington comes in as a half-partner. Skalbania secures the services of ex-Oil King Glen Sather from the NHL's Minnesota North Stars as the Oilers' new captain. Sather becomes playing coach in 1977. Pocklington eventually buys out Skalbania, who now owns the Indianapolis Racers.

1978: Oilers owner Peter Pocklington buys a fresh-faced 17-year-old hockey player named Wayne Gretzky from Skalbania. With Gretzky sparking the team, the Oilers advance to the league finals before falling to Bobby Hull and the defending champion Winnipeg Jets.

1979: The WHA folds and the Oilers become a new member of an expanded National Hockey League. On the day season's tickets go on sale for the Oilers' first NHL season, every season ticket is sold by noon, leaving only 700 game-day seats for "casual sales." In its first NHL entry draft the team picks up Kevin Lowe, Mark Messier and Glenn Anderson and cuts a deal to get back tough guy Dave Semenko. The Oilers finish their first season with a 28-39-13 record and the final playoff position. The Oilers bow out of the playoffs in the first round after three straight losses.

1983-84: The Oilers win their first Stanley Cup.

1984-85: As Alberta's oil economy crumbles and some of Pocklington business enterprises run into trouble, the Oilers owner sets the stage for future Oilers' problems by using his 21-year personal services contract with Gretzky as collateral on a bank loan "for no more than $20 million" with Alberta Treasury Branches. The Oilers win another Stanley Cup, but lose the next year.

1986-87: The Oilers win another cup as Pocklington proposes to the NHL board of directors a public share offering of the club. Fortune magazine pegs the value of the Oilers franchise at $35 million. No public share offering is made.

1987-88: Another Stanley Cup.

Aug. 9, 1988: Pocklington sells Gretzky to the Los Angeles Kings. The Gretzky-led Kings knock the Oilers out of the playoffs in the first round of the 1988-89 season.

1989-90: The Oilers win their fifth and last Stanley Cup.

1990-91: Gainers Inc. files a $7.75-million suit against Oilers owner Pocklington, bringing the company's total claim against its former owner to $12.15 million. Pocklington declares his impending $100-million sale of Palm Dairies has him thinking of building his own arena and vacating Northlands Coliseum. Northlands counters with a $70-million offer to buy the Oilers.

1991-92: The first glory era of the Edmonton Oilers is laid to rest before the season begins with the departures of Mark Messier, Grant Fuhr and Glenn Anderson.

1992-93: The Oilers miss the playoffs.

1993-94: As Pocklington tries to hammer out a more favourable Coliseum leasing agreement, negotiations at various points hint the franchise will be moved to Hamilton or Minneapolis. The team stays, but finishes the season in 23rd place.

1994-95: Pocklington strikes a new deal to take control of the Coliseum in exchange for a $2.8-million annual payment to Edmonton Northlands. The city directs $15 million in federal infrastructure grants to renovate the Coliseum and for Pocklington to build a new baseball park for his Triple-A baseball franchise, the Trappers. Pocklington spends $4 million on Coliseum improvements and another $4 million on the ballpark, while the city forsakes a seven-per-cent surcharge on Coliseum tickets, giving Pocklington $1.5 million a year toward his lease payment. As part of the deal, under the first of three 10-year leases, the Oilers cannot be moved until at least 2004.

Late 1997: Alberta Treasury Branches takes control of the Oilers as payment towards Pocklington's accumulated debts. In the spring of 1998, the team is sold to the Edmonton Oilers Investment Group, a collection of local business people and companies that still owns the team.

Compiled by Jim Farrell, Journal Staff Writer

jfarrell@thejournal.canwest.com




© The Edmonton Journal 2007

[Coldrsx]

^wow....and although the oilers group is amazing, this might be a very good thing.

[Xelebes]

Cool beans.

[feepa]

^^^ huge omg

So much going on in Edmonton this week

[SHOFEAR]

wtf is going on in E-town this week......crazy shit

[freeweed]

With Gretzky sparking the team, the Oilers advance to the league finals before falling to Bobby Hull and the defending champion Winnipeg Jets.

I know it's offtopic, but this former Winnipegger just had to point that out.

In my entire time as a hockey fan, every single damn Oiler/Jets story read exactly the OPPOSITE. The WHA rocked! :haha:

[craneSpotter]

Katz stepping in is key for the new downtown arena :yes:

Now, just where to put it and the ancillary development. Damn stationlands is in the way :cheers:

[fortroad]

^ Stationlands.... :(
On the Oilers, I don't know if this is a good thing. I hope it is a majority share and not a full out ownership. The Ownership group is more stable than one owner.

[itom 987]

The Ownership group is more stable than one owner.

Very true but on the other hand, the chances of getting a new arena built downtown improves. I hope Daryl Katz dosn't go the way Peter Pocklington went.

[Kevin_foster]

This is huge! However, I am still a fan of ownership groups, not individuals. Makes each owner a little more accountable; but I'm not particularly edumacated on the whole thing; so I'm not sure if it's good or bad.

Crazy Edmonton news this week. OMG Edmonton is the new dubai 11`~

[ibz]

Wow this kinda came out of nowhere. What a week indeed.

[christopherj]

Katz stepping in is key for the new downtown arena :yes:

Now, just where to put it and the ancillary development. Damn stationlands is in the way :cheers:

And maybe he can move Rexall's main office to Edmonton to be apart of the office part of the development. :)

(okay, okay - a guy can dream about a major head office moving to Edmonton, right?)

[Hardhatdan]

I don't think Rexall has that much of a corporate presence to be honest.

[Xelebes]

Rexall's head office is in Edmonton already. My dad installed shelving in that office.

[SHOFEAR]

Rexall's head office is in Edmonton already. My dad installed shelving in that office.


I believe it's in Missisauga. Katz group (or whatever it's called) has their office here.

[IKAN104]

I'm not sure what to make of this. I like the stability of the EIG but Katz has a lot of money and more importantly he's a born and raised Edmontonian.

Having just built a $20 million, 25,000 square foot house in Edmonton he obviously is planning to stay put.

His ownership could improve the odds of the arena being built. It would also improve the Oilers ability to compete in the free agent market.

[Hardhatdan]

Love how Katz's personal wealth grew by 300 million last year. Every year he can basically build an arena...DAMN!

[Edmonchuck]

Katz Group is in Edm....Rexall is in Miss...

As for the "Stationlands" comment, it so is not in the way. This can be done w/o Stationlands.

[Coldrsx]

Oilers bid makes arena plan more feasible: councillor (5:57 p.m.)
Duncan Thorne , edmontonjournal.com
Published: Saturday, May 05, 2007

EDMONTON - The Oilers bid by Edmonton billionaire Daryl Katz suddenly makes a new hockey arena more feasible if the existing owners agree to sell, a city councillor said Saturday.

Katz obviously has deep pockets, making it conceivable he could buy the team and finance the proposed $400-million downtown arena on his own, Coun. Bryan Anderson said.

So far it's not clear how Katz feels about the arena idea, but his involvement would boost its economic prospects, Anderson said.
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"He's been a good businessman," Coun. Bryan Anderson said. "That's a positive."

Katz's pharmacy empire, the Katz Group, owns the Rexall drug store chain whose name graces the current arena, and other retail outlets.

Anderson said Katz is clearly committed to Edmonton, given the 25,000-square-foot mansion he's had built for himself in Valleyview Point at an estimated $20-million cost. "He is a local guy."

The Oilers' future in Edmonton will be assured if Katz ends up paying for both the team and a new arena, the councillor said. "That's about as solid a commitment as you can get."

He said Katz's possible ownership stake will be a factor for the arena-feasibility committee to consider.

Coun. Karen Leibovici said the economics of the proposed arena are less important at this stage than where it should be, and Katz's involvement so far is hypothetical.


© Edmonton Journal 2007

[ssnajper]

katz isn't just doing this for fun. he is buying the team so he can have a major role in the downtown arena.

not only will he guarantee having rexall as the sponsor but he will probably figure out a way to mortgage the arena for more than it costs to build like he did with his house and then he'll be able to use these funds to invest in other ventures.

or he might just use the extra cash to sign a couple top-notch players to make the team more competitive in the league.

[Coldrsx]

^i agree...and he will move his company into stationlands and have a tower there.

[feepa]

What will next week bring us?

[Coldrsx]

^a new money mart in manulife

[sdimedru]

^a new money mart in manulife

you saying money mart's new HQ? Green Manulife 2?

i'm joking , as long as you are lol :)

[Coldrsx]

an HQ is an HQ...imagine...for a second...a RFP for 500,000 sqft for a moneymart Global HQ and that is predominant name in our sky.

[CanadianCentaur]

^a new money mart in manulife

Oh wow. :rolleyes:

[itom 987]

Money Mart's HQ is in Victoria.

[feepa]

Not for sale!

Drugstore billionaire Daryl Katz is not going to be the new owner of the Edmonton Oilers with a $145 million offer to buy the team as reported in an "exclusive" sourced-story by the Edmonton newspaper that is one of the 37-member ownership group.

"There has been no formal offer. Only an inquiry," said chairman Cal Nichols.

"To my knowledge everybody in our ownership group is happy and proud. We're flattered by the interest, but I believe the vast majority of our group has no interest."

Cal Nichols

And there's no need for Katz to make it an actual offer, says Nichols.

"Not for sale," he said.

"To my knowledge everybody in our ownership group is happy and proud," said Nichols of the group he put together.

"We're flattered by the interest, but I believe the vast majority of our group has no interest."

Larry Makelki of Lloydminster who is one of the major investors and the key to raising a significant number of the others, said Nichols isn't in denial or anything.

"We're not for sale. Everybody is happy with our involvement so far as I know. The only thing we're not happy about is that we're not in the playoffs."

While the Katz family did not step up as one of the 37 owners back in 1996 when this team was being saved by Nichols, there's no question they now have the money to buy the team.

And it's great to have somebody like Daryl Katz out there for sport support.

But that this ownership group "" all of whom put their money in for no reason other than to save the team and do something for their city "" is not going to chase the money should be considered exceptionally good news.

Edmonton has a special deal here. And these are special guys.

Having a 37-member ownership group is a beautiful thing. It gives the average fan a feel like the community-owned Eskimos, that it's very much their team.

"That philosophy, that feeling that the team belongs to the city, has really worked well," said Nichols.

"It worked well in putting the group together in the first place and selling the tickets after we did get it together. It involved all our suppliers and the people we do business with."

It's also going to play a large part in the building of a new downtown arena.

It's a lot easier for the city to rally around the expense of getting the building to bring Edmonton back up to standard around the league (not to mention our own city centre) with an ownership group created for reasons other than profit than an individual who, for all we know, could be the second coming of Peter Pocklington.

No knock on Katz, who became a billionaire in the last 10 years, but the original ownership group bought in when, as Nichols says, "it was so fragile, so high risk and our dollar was worth 63 cents U.S."

Considering Katz has paid the price to have Rexall on the building, sponsored the Mark Messier banner raising, and is involved in sponsorship of the junior Oil Kings, it would be nice to see him in the ownership group.

And that is possible.

"There's a retirement value if somebody has to get out because of bankruptcy, if they want to get out because they're getting older or, of course, in the event of death. The shares can go into the treasury or someone else can come on," said Nichols.

For those purposes the team was valued at $60 million in 1998 and is now at $96 million with a total of 7,400 shares involved.

To transfer a share requires 60% approval of the board. To sell the entire team requires a 67.7% majority.

Nichols said off the top of his head he could assure Edmonton that more than 90% of the owners have no interest in any offer to buy the entire team.

"Not for sale!"

terry.jones@sunmedia.ca

[feepa]

Is Katz the right man?

What kind of Edmonton Oilers owner would Daryl Katz be?

Hypothetical questions rarely mean a thing, but this one can't be overlooked for long.

It's valid to note that any 37-member ownership group is unwieldy and that several of the original Oilers investors have confirmed they'd like to get out while suffering no major financial setback.

From the beginning, NHL commissioner Gary Bettman doubted the stability of such a large group. Quickly, he became convinced that the Edmonton model could work because Cal Nichols and other group leaders were concerned more with the common good than with individual glory.

Their community-first approach, and nothing else, kept the NHL in Edmonton.

Current owners like Mark Cuban and George Steinbrenner share a common ego-first approach. They believe everything can be settled in two ways: their way and the wrong way. In a market of this size, it should be obvious that Katz, or any other individual owner, would have to find a more rational method.

As I see it, the drugstore billionaire's offer should include a provision that major contributors -- surely including Nichols, the current governor and major domo -- would remain as integral parts of everything that happens for many years to come.

It would be equally essential to keep master marketer Patrick Laforge and still-developing general manager Kevin Lowe involved, too, and for a long time.

Whether we need it or not, Edmonton is headed for a new arena, replacing the still-satisfactory Northlands-Skyreach-Rexall structure. To spend hundreds of millions of your tax dollars on a downtown edifice and then hand control of it to one man -- whether Daryl Katz or anyone else -- would be a questionable strategy.

***

Another Oilers partner, Ron Hodgson, has more than hockey on his mind this week. He has been focused on drag-racing, his first sports love.

Still rebounding from cancer treatment a few months ago, he spent the last two weekends at Fontana, California and Seattle watching the great Terry Capp drive a funny car at ridiculous speeds. "We had best (elapsed time) and top speed in California, the first time we turned it on," Capp said. A week later, in Seattle, they were almost as fast.

Said Capp: "We haven't really cranked it up yet."

As vicious rain washed out a scheduled weekend of drag-racing, Castrol Raceway general manager Art Eden found consolation. "We've already done some test-and-tune," he said.

He anticipates another big year for the sprint cars and late-model stock racers and believes the Rocky Mountain Nationals, as usual, will be a big success. Certainly, having Capp behind the wheel of the new Hodgson-sponsored funny car will mean good things at the box office.

"We'll be ready to go in a big race here June 7," says Capp.

***

One day, the Junior A hockey operators across the country will find a way to balance the playing field.

As the Camrose Kodiaks prepared for their shot at another Royal Bank Cup title, coach-general manager Boris Rybalka was too sharp to focus on the big advantage held by Ontario's Aurora Tigers, who dress a full roster of 20-year-olds. Most other teams in the final at Prince George, including Camrose, dress only six 20-year-olds.

A double standard of this sort is disgraceful in any national championship.

[feepa]

Bid won 'a lot of support'
But owners who wanted to sell held less than required two-thirds of shares
John MacKinnon, The Edmonton Journal
Published: Sunday, May 06, 2007

EDMONTON - The Oilers are not for sale, says Edmonton Investors' Group (EIG) board chair Cal Nichols.

But pharmacy magnate Darryl Katz remains a motivated buyer.

The 45-year-old billionaire has offered to purchase the team for $145 million.
Cal Nichols, chairman of the board of directors of the Oilers' ownership group, addresses a 2001 press conference.View Larger Image View Larger Image
Cal Nichols, chairman of the board of directors of the Oilers' ownership group, addresses a 2001 press conference.
Ed Kaiser/Edmonton Journal
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The offer -- for 100 per cent of the 7,492 shares held by the 33-member EIG is well above the club's own "retirement value" of $96 million, Nichols said Saturday.

The retirement value is the fluctuating price tag the club sets annually for EIG members buying or selling their shares, either to each other or to third parties.

"We're flattered by that," Nichols said of the bid, which was first communicated verbally in discussions between lawyers for the EIG and Katz on March 23. "I guess it's another indication that our franchise is very well managed and has some appeal.

The bid was rejected last week.

"We have no formal offer, only an inquiry. But the majority of our shareholders ... have no interest in selling."

Nichols acknowledged that some of the owners would be interested in selling the club at $145 million. But under the Alberta Business Corporations Act, an outright sale of a corporation's assets requires approval of investors whose holdings total two-thirds of the issued shares.

If Katz, or any other interested buyer, could entice Oilers owners whose shares total a two-thirds majority to sell, the remaining investors would have no choice but to do the same.

Nichols said that on the 10-member EIG board alone, owners whose shares total more than one-third are not interested in selling.

He said 25 of the Oilers 33-member investor's group met Monday to discuss the offer. The consensus was not to sell, a message that was relayed to Katz, whose Rexall pharmacy chain is the titleholder on the team's home arena.

When Nichols was asked if that means the matter is closed, he replied: "I would say, at that price, at this point in time, that's probably correct.

"There wasn't enough interest in a sale."

This is the first time since the group was established that anyone had expressed interest in buying the Oilers outright, and Nichols said the owners set up an ad hoc committee to respond to Katz's inquiry.

As well, Katz had two discussions with NHL commissioner Gary Bettman about buying the club.

"Ultimately, the franchise is controlled by the league," Nichols said. "They need to know our process."

Josh Pekarsky, a spokesman for Katz, said their hope is that the process will be ongoing.

"We made a good-faith offer that we believe represents excellent value for the club, and we've received a lot of support from a number of the owners," Pekarsky said. "The offer was for 100 per cent of the club because that's what the board requested.

"We fully recognize everything Cal Nichols and the rest of the owners have done for the Oilers and they should be applauded for that, but we also understand that many of the original owners now wish to move on.

"We remain optimistic that this can be worked out, but it's not our intention to negotiate through the media."

When EIG was established in the spring of 1998, the governance structure was set up to ensure shares could be bought, sold or transferred in a quasi-democratic fashion.

It was also set up to protect against an owner buying the club and moving it out of Edmonton

That's not an issue with Katz, who built a $20-million home overlooking the river valley last year.

Katz's bid does have the effect of setting a target price for those EIG members who would like to divest. But Katz's price is only available to them if the ownership group approves a sale of 100 per cent of the shares.

Any EIG member who wants to sell his shares must obtain the approval of 60 per cent of the other shares to do so. If that doesn't work, the governance structure calls for a so-called "round-robin" series of bids around the board table. And if that still doesn't satisfy the sale request, the investor can then take his shares to the open market.

"The reason it was done this way was so you could pick your partners," Nichols said. "And to have some fairness in the buy-sell part of it.

"Because, on any given day, any of us could be on the side of buying or selling."

The EIG originally had 38 members in 1998, when it bought the Oilers from Alberta Treasury Branches for $60 million, saving the franchise from being sold to outside owners and moved out of Edmonton.

Nichols views the group as custodian of Edmonton's No. 1 cultural icon, for which he and his partners have invested far more than money.

"It's a question of, philosophically, what serves the community best?" Nichols said. "Is a larger group of networks better able to sell Oilers tickets and product than one person?

"And, I guess, the same applies to the building."

He was referring to the much-discussed possibility of a new downtown arena, whose price tag has been estimated as high as $500 million. Nichols is a member of a committee struck by Mayor Stephen Mandel to study the feasibility of such a facility.

jmackinnon@thejournal.canwest.com

[Coldrsx]

interesting...

[CMD UW]

/\ Very interesting. Rest assured that this is not over. There will be many conference calls, meetings, discussions with lawyers, bankers, accountants over the next couple of weeks.

[0773|=\]

When you get to be as rich as Katz, you really have to ask hard questions about hidden motives. He's got a lot of money, but what are his ethics? He rarely speaks to the media so it's tough to know what he's like. What would he deem a viable investment for the city and the team? Will he part with his money to contribute to the team's success (funding an arena) or will he screw the taxpayers for money while basking in his riverfront mansion?

I can see why this bid got a mixed response from the EIG. Edmonton believed Pocklington had our community's interests in mind at first, but the team soon became expendable when his own financial situation wasn't ideal anymore. Would Katz do the same if shoved into a corner?

They're questions to keep in the back of our minds. It always seems like billions of dollars backing a bid for the purchase of a team is that shining light at the end of the tunnel, but to Katz, the fans might soon just become that 'annoying-unemployed-posh-wife' who has a million ideas for where to spend his money... all in the name of the Edmonton Oilers.

Maybe that's a bad comparison, but all I'm saying is, one good thing we have with a larger ownership group is not easily replaced with a single owner... that's accountability.

[SHOFEAR]

/\ If his intention is profit....there are far far far better investment opportunities.

[CMD UW]

/\ Exactly...

[Hardhatdan]

This is a man who's PERSONAL WEALTH grows by the cost of a new arena every year. He knows what he is doing and he knows very well that this team being extremely proitable is never going to happen.
However, it is also a man that despite his massive personal success has not really secured himself a public legacy of any sort, even in his hometown of Edmonton.
Could this be his attempt to remove the shadow of be recluse and be a defining figure in Edmonton?
Certainly purchasing the team and being instrumental in developing a new Downtown arena would achieve this.

[SHOFEAR]

Great point HHD.

[IKAN104]

However, it is also a man that despite his massive personal success has not really secured himself a public legacy of any sort, even in his hometown of Edmonton.
Could this be his attempt to remove the shadow of be recluse and be a defining figure in Edmonton?
Certainly purchasing the team and being instrumental in developing a new Downtown arena would achieve this.

Good point. Maybe his 25,000 square foot house was his first attempt.

[Coldrsx]

katz is a wonderful option for ownership...EIG has many wonderful people. Perhaps they need to partner/JV

you run the team, i build the rink, rexall is the lifetime sponsor.

[CanadianCentaur]

Filthy rich man wants to buy the Oilers so he could become more of "da man" in Edmonton - reminds me of Peter Pocklington. No surprise that the EIG doesn't want to sell the team to that guy. But I'm sure that Katz is not one to give up easily, though.

[Coldrsx]

^to compare katz and pocklington is SO SO VERY WRONG. Everything i have heard about Katz is positive...and although his business ideals are very aggressive, he is at heart a very kind person who loves this city and wants to secure the team here long term.

[CanadianCentaur]

^ I hope so. But the EIG's refusal to sell the team sounds to me like at least a few still have bad memories of Pocklington, regardless of whether Katz's a different guy or not.

[guymez]

^ I hope so. But the EIG's refusal to sell the team sounds to me like at least a few still have bad memories of Pocklington, regardless of whether Katz's a different guy or not.

I see this more as posturing than anything else. Initial offers are rarely accepted and I fully expect Katz to submit another offer. You can bet that the interest level (in selling) of many EIG members will increase with the next offer. ;)

Something that needs to be answered....how did this story get leaked in the first place?

[basilbrush]

/\ The EDM Journal is a part of the EIG.

[guymez]

/\ The EDM Journal is a part of the EIG.

Yeah...I get that. I just don't see how it benefits EIG by having part of its group (the Journal) leak the story. One of Katz's people on the other hand.....

[SHOFEAR]

Yeah...I get that. I just don't see how it benefits EIG by having part of its group (the Journal) leak the story. One of Katz's people on the other hand.....

Perhaps the journal was one of those wanting to sell?

[guymez]

Perhaps the journal was one of those wanting to sell?

I guess it's possible.
One things for sure....this is going to get very interesting before it's all over. :D

[CMD UW]

^ I hope so. But the EIG's refusal to sell the team sounds to me like at least a few still have bad memories of Pocklington, regardless of whether Katz's a different guy or not.
On what grounds can you draw that comparison? Was it based on the fact that the EIG simply declined to enterain Katz's offer? If so, that seems pretty weak.

[ibz]

I have no doubts we will see another offer from Katz. Nobody ever takes the first one...and Im sure a few of the owners sitting on the fence of whether to sell might be tempted with another couple mill thrown into the mix. We will see though.

I think there are certainly benefits to Katz owning the team, one being a new arena probably quicker and less problematic then with the EIA.

[christopherj]

Of course the EIG will say the team is not for sale. Did anyone think they would come out and start advertising it?

Fact is - this is just an opening offer. For $145 million. Canadian. For a healthy franchise.

When Pittsburgh was for sale, Jim Balsillie's offer was for $175 million. US. For a team with a number of problems - including needing a new arena.

That's around a $50 million CDN difference. Still a ways to go with this I would guess. :)

[Hardhatdan]

I heard on the news today the opening offer was 125 million and the follow up was 145 million.

[christopherj]

Word is the EIG is making a counter offer...

http://www.canada.com/edmontonjournal/news/sports/story.html?id=5ea70e90-af88-456e-89b3-0ff31647574b&p=1

In fact, I heard rumours on the weekend that such a counter-offer was made, and I've been trying to confirm it with Nichols or others on EIG's board since I was tipped about the Katz offer late Friday.

But the question never came on Monday. So Nichols didn't have to answer it. And I've had no opportunity to ask it myself, since Nichols has thus far declined to return any of my calls.

[chuber]

^ I think that rumor was just made up by the writer to attract attention to his column.

[Coldrsx]

Katz sweetens offer for Oilers
Bid for NHL team bumped to $150M

Dan Barnes
The Edmonton Journal

Friday, June 15, 2007

EDMONTON - It's a month old and Oiler owners still consider it an informal bid, but

Edmonton billionaire Daryl Katz's offer to purchase the team now stands at $150 million Cdn, an increase of $5 million on his original gambit.

The Edmonton Investors Group, which owns the National Hockey League franchise, have discussed Katz's proposal but will not respond to it until they believe it constitutes a formal offer to purchase.

"There was talk about it (at a Thursday meeting of EIG), but because there was no offer, there was really nothing to talk about," said Cal Nichols, official spokesperson and board chair.

"It was a number on a piece of paper. It may have been on two pages, but an offer has to have all the conditions and subject-tos. It was largely hypothetical and conjecture. It wasn't why we met."

It was actually a three-page offer signed by Katz, but Nichols and the remainder of the EIG board members did not consider it substantive enough to distribute to all shareholders.

They met instead to vote on re-establishing the value of the franchise at an arbitrary $125 million, up from $96 million, a proposal that received almost unanimous acceptance. That means the retirement value of each of the 7,492 shares jumped from $12,830 to $16,683. This was done in order to facilitate the fair sale of shares, should any of the 34 shareholders wish to do so.

"We met in order to stay current on our shareholder agreement. Our objective was to go about our business," said Nichols.

He did confirm the $150 million figure as accurate but called it "adjustable" since a formal purchase price would have to allow for outstanding loans, taxes payable and deposits on season tickets. It's also known the offer is for shares rather than the asset itself, which means its value might be considerably higher than $150 million, given potential tax benefits to EIG shareholders.

Nichols also said the $150 million was exclusive of the money Katz has already committed to secure the naming rights for Rexall Place, believed to be $15 million over five years.

"That's a separate issue."

Katz's escalating interest in the franchise has sent reverberations through the city and particularly the boardroom of EIG, which has owned the team since 1998. Nichols said each shareholder met recently with board members to ascertain their feelings on a potential sale of either the team or individually held shares.

"We're trying to manage the collateral damage within the community and within our group," he said.

There is no doubt Katz's pursuit of the team has piqued the interest of some owners who are now willing to sell, a fact Nichols admits. However, EIG was not soliciting offers and he doesn't foresee the required 66.7-per-cent majority favouring a sale of the franchise, which was purchased from the Alberta Treasury Branch for about $100 million.

"This was unsolicited. It came out of the blue," said Nichols. "Never had there been a suggestion this group wanted to sell, or that the team was for sale. Even if it was a formal offer, it would require (66.7 per cent) of shareholders to agree to sell the asset."

Phone calls to other shareholders, including Bruce Saville and Ron Hodgson, were not returned Thursday. A spokesperson for Katz was contacted but would not comment on the offer.

Rather than a sale to Katz, Nichols envisions as "one probability" some consolidation of the company.

"People agreeing to sell their shares (to other investors or the company treasury) at a price they can live with," he said, adding that changes in the makeup of ownership are inevitable given the diverse nature of the group, the fact they have been together for a decade and the franchise is once again on solid ground financially.

"We've been together 10 years. Age becomes a factor. Already there have been two deaths in the group. Some don't live in the area. Some say 'I did my thing, I'm proud and happy that I did and maybe it's time to let it work more easily.' "

But he believes a majority of owners are still happy to be involved with the NHL.

"Some in our group are using a brand relationship (between their other businesses and the Oilers) just like the pursuer (Katz) wishes to do. There is a resistance (to selling out)."

There is no doubt the Oiler owners have enjoyed the benefits of being associated with a high-profile sports franchise. But it came at a cost of money and time. The owners borrowed $40 million and put up $60 million of their own money in 1998, then increased that with a $14-million cash call in 2001 to cover operating losses.

Starting with the first season ticket drive back in the gory days of the mid-1990s and continuing through the messy transition from former owner Peter Pocklington and the equally unpleasant departure of general manager Glen Sather, nobody has spent more time on the franchise than Nichols. He has to do what's in the best interests of the group, with one eye on his own situation.

"Eventually you have to move on," he said. "The question is, when is the right time? Many in our group are comfortable with a business/family succession plan. Those are the kinds of options guys in our group have.

"I've personally put a lot of sweat equity into this and to say it doesn't matter anymore, let it go, it makes it somewhat emotional. And yet I do speak for a large group and I have to be mindful of everyone's preference, goals and objectives. On any given day, there are 34 of them."

dbarnes@thejournal.canwest.com
© The Edmonton Journal 2007

[ExcaliburKid]

Thought this was interesting, though not sure how credible. Take it with a grain of salt.
http://www.hockeybuzz.com/blog.php?post_id=8465

[Coldrsx]

^

Dan Tencer 630 CHED Radio
Come Out, Come Out...Wherever You Are UPDATE
Today @ 2:37 PM ET | Comments (35)
I'm beginning to wonder if Daryl Katz exists or if he's just the Keyser Soze figment of someone's imagination. He's apparently whispered to a reporter that his offer on the Oilers has been upped to $190 million. Thing is, the Oilers have never received any formal offer from Katz to buy the team. It all seems like napking-written numbers and whispers to the odd reporter. To my knowledge, Katz hasn't done a quoted interview with television, newspaper or radio throughout this whole ordeal.

Last week, Katz purchased the title sponsorship for the Grand Prix of Edmonton. He wasn't at the press conference. He didn't do any interviews. He ducked out of the gym when the media wanted a few minutes of his time. Is anybody else wondering if this is an indication of how he'd be as an owner? Asking for blind faith from ticket holders and sponsors without ever being available to answer questions?

If he really wants this team, it's time to step up publically and make a formal offer. Why should the Oilers organization keep having to comment on informal offers on a team that isn't for sale? Katz needs to stop negotiating through the media and show himself.

***Update: Katz's spokesman Josh Pekarsky was good enough to have a nice chat with me this afternoon. I don't like what he had to say, but he gets all the kudos in the world for putting up with my barrage of questions. It was a whole bunch of 'no comment' and he said that it's typical not to speak with the media during negotiations. That being said, he wouldn't confirm that there were any negotiations going on. He wouldn't confirm or deny that a formal offer had or had not been made. He wouldn't confirm or deny the $190 million offer. "If there was something to talk about, I'm sure Mr. Katz would be available." Hmmm...I guess there wasn't much to talk about last week when he purchased the title sponsorship for a major international sporting event being held in our city.

[Spencer]

I heard on Team 1260 today that there is a rumour that Daryl Katz is going to offer $190,000,000 for the Oilers. There wasn't much more talked about but maybe he's getting serious.

[SunCoaster]

:previous: I've got to ask ... even @ $190M aren't the Oilers undervalued? How is it that a town like Edmonton with a long, proud, hockey history and a town which lives and breathes the Oilers have a team which is worth (on paper @ least) so much less than Jim Balsillie is willing to pay for the Nashville Preditors in a town which has no hockey tradition tradition and which could (relatively speaking) give a crap about whether the team stays or not?

... hum ... perhaps we could light a fire under Katz' butt via starting a rumor that Balsillie has given up trying to buy the Preds and is now interested in buying the Oilers and moving them to Hamilton :banana: ... don't laugh anything is possibly in this era in the NHL

[Coldrsx]

given that the oilers were worth only 75mil a few years ago, 190 seems aight

[liferanger]

We need someone like Katz to 1) buy the Oilers 2) assist in facilitating a downtown rink 3) pony up some cash for some 1st tier players....

[feepa]

We need someone like Katz to 1) buy the Oilers 2) assist in facilitating a downtown rink 3) pony up some cash for some 1st tier players....

1) yes 2) ok, but can/will be done without 3) uhhh Kevin Lowe just offered RFA Thomas Vanek 50.44 M over 7 years... Don't think there is a problem here.

[vid]

For a second I thought the mayor of Winnipeg was going to buy a hockey team.

[brento79]

given that the oilers were worth only 75mil a few years ago, 190 seems aight

Yeah, but that's kind of saying something like "your house was worth 120,000 two years ago, so even though the market value is 360,000 now, I am going to offer you 200,000 and expect you to consider it a great deal.

[feepa]

Yeah, but that's kind of saying something like "your house was worth 120,000 two years ago, so even though the market value is 360,000 now, I am going to offer you 200,000 and expect you to consider it a great deal.

I don't think the Oilers are worth more then 150 M... Forbes I believe had them at 140 M last time around

[Jasper and one o nin]

We need someone like Katz to 1) buy the Oilers 2) assist in facilitating a downtown rink 3) pony up some cash for some 1st tier players....
Believe me, the best guy to have on board to get a new rink downtown is Cal Nichols. Trust me, this thing is already happened, Cal Nichols was the one who made it work by mapping it out - its just a matter of having things fall into place in due time and optics. But if there is one guy you want to make it work - its cal nichols. And that all I will say.

[JAH]

^

Dan Tencer 630 CHED Radio
Come Out, Come Out...Wherever You Are UPDATE
Today @ 2:37 PM ET | Comments (35)
I'm beginning to wonder if Daryl Katz exists or if he's just the Keyser Soze figment of someone's imagination. He's apparently whispered to a reporter that his offer on the Oilers has been upped to $190 million. Thing is, the Oilers have never received any formal offer from Katz to buy the team. It all seems like napking-written numbers and whispers to the odd reporter. To my knowledge, Katz hasn't done a quoted interview with television, newspaper or radio throughout this whole ordeal.

Last week, Katz purchased the title sponsorship for the Grand Prix of Edmonton. He wasn't at the press conference. He didn't do any interviews. He ducked out of the gym when the media wanted a few minutes of his time. Is anybody else wondering if this is an indication of how he'd be as an owner? Asking for blind faith from ticket holders and sponsors without ever being available to answer questions?

If he really wants this team, it's time to step up publically and make a formal offer. Why should the Oilers organization keep having to comment on informal offers on a team that isn't for sale? Katz needs to stop negotiating through the media and show himself.

.


While I do agree to this view somewhat, you also have to respect that Katz maybe prefers his privacy and would rather stay out of the spotlight. Some people are just like that. But hey, is that so bad? I seem to recall a previous wealthy Oiler owner who loved the media spotlight (Peter Puck)... and not many fans were fond of him, including myself. I would be thrilled if Katz ended up purchasing the Oilers. He's building the biggest mansion in Edmonton, so its obvious that he has great ties and commitment to this city. He's a wealthy man who could do wonders for the Oilers. And believe me, if there was ever a good time for the Oilers to announce something positive, THIS would be it. As much of a big fan I am of the Oilers and a supporter of Lowe and Co., this last year has been extremely hard to take. Having Katz buy the Oilers would make my day and hopefully bring some positive winds of change to this organization

[JAH]

edit

[liferanger]

Believe me, the best guy to have on board to get a new rink downtown is Cal Nichols. Trust me, this thing is already happened, Cal Nichols was the one who made it work by mapping it out - its just a matter of having things fall into place in due time and optics. But if there is one guy you want to make it work - its cal nichols. And that all I will say.


Is cal Nichols and the current ownership group really the best solution to the problems that the Oilers are facing, both in terms of a potential new arena and attempting to rebuild the team or would some new blood in terms of 1 owner vs 20 + be the solution.

[Jasper and one o nin]

Maybe yes, maybe no. I have no idea. I do know, that Cal Nichols will get an arena downtown. It may even be better to say, he has already made it happen - its just a matter of time. I think that this has been in the works for a number of years now. things will likely come into place after the fall civic election.
As far as the current ownership group - we know that they were established for the sole purpose of keeping the Oilers in Edmonton. Nobody knows anything about Katz.

[JAH]

I am pretty sure that if EIG sold the Oilers to Katz, one of the conditions on such a purchase would be to keep the team in Edmonton. Without that condition there, theres no way Edmontonions would be in favour of the sale

[liferanger]

^ I agree with your comment about having a clause to keep them in E-town....Do you think KATZ would really want to move the team after he built that mega mansion in E-town.....looks like he is rooted in here for the long haul.....I think thats what Edmonton needs, some solid roots of wealthy individuals who arent afraid to toss around some dollars...

[Coldrsx]

^no!

The Oilers Are Staying Put

[feepa]

^ I agree with your comment about having a clause to keep them in E-town....Do you think KATZ would really want to move the team after he built that mega mansion in E-town.....looks like he is rooted in here for the long haul.....I think thats what Edmonton needs, some solid roots of wealthy individuals who arent afraid to toss around some dollars...
even though I don't think Katz wants to move the team... Puck had a rather large house about 15 blocks north east of where Katz house is now... so a large house does not mean anything really

[ExcaliburKid]

^True, but didnt Petey run into some financial trouble with his other investements that forced him to look at selling the team?

[feepa]

^True, but didnt Petey run into some financial trouble with his other investements that forced him to look at selling the team?
Yes, and whats to say Rexall/Katz doesn't run into the same trouble? Mind you, Katz is far more wealthy then Puck was ever... but still...

[JAH]

^ Yup, remember the whole Gainers situation. I think PUck was in trouble with ATB too? But then again, this is the same man who also sold Gretzky for 15 million.

For being the wealthiest man in Edmonton, Katz is relatively unknown. But as I stated before, there would be no way EIG would sell to Katz without a condition of the team stayin put

[ExcaliburKid]

Agreed, I would die if the Oilers left the city. It would be the most embarassing moment in the city's history, imo

[SHOFEAR]

If anybody thinks Katz would move the Oilers you have been in the sun for way to long.

The guy realizes he's made a huge fortune and it's his time for some philanthropy. The guy came out of no where seven or eight years ago and bought the naming nights to Northlands, donated huge coin and was awarded the naming of the HRIF building at the U, Built the biggest house this city has ever seen, and purchased the naming rights for the GPE....We should all be loosing sleep with his intentions with the oilers:koko:

[Hootch]

Katz move the Oilers? That's just silly. Why would he move the 7th most profitable franchise in the NHL? He knows the Oilers generate huge revenue, unfortunately so does the EIG. Katz also has loyalty to keeping the team where it belongs.

[feepa]

I dont think anyone was saying that Katz has any intentions of moving the team... Just that anything could happen under any ownership really.. Money comes, money goes.
There's little to no doubt in my mind that the Oilers will never leave Edmonton

[ExcaliburKid]

Never speculated that he would move them, I just voiced how I would feel should the Oilers ever ceased to be known as "Edmonton" Oilers.

[Coldrsx]

"
If anybody thinks Katz would move the Oilers you have been in the sun for way to long. "

ha

[liferanger]

I believe that having a guy like KATZ vs. EIG would provide some longer term planning in terms of team stability, a new arena etc. Although the EIG has been somewhat effective up to this point, it's hard to think of any organization with 20+ CEO's trying to agree or get a majority for a long period of time....

[CMD UW]

/\ True....

[JAH]

I give EIG lots of credit for all the work they've done.. b/c without them, I doubt the Oilers would be here today. But I do agree that having one owner is definitely an advantage over 37 owners.

[SHOFEAR]

I believe that having a guy like KATZ vs. EIG would provide some longer term planning in terms of team stability, a new arena etc. Although the EIG has been somewhat effective up to this point, it's hard to think of any organization with 20+ CEO's trying to agree or get a majority for a long period of time....

Like jah just somewhat pointed out, I don't think many in the EIG intended for it to be a long term solution. Their "mandate" was to get the Oilers to the next CBA and by spreading the cost out between 30 of them nobody would lose a shirt. It was never supposed to be a money maker. Now with Katz's offer the EIG members have the opportunity to move on and recoup damn near all their initial 60 some million dollars + whatever cash calls occured. Katz last reported offer would probably mean a profit for the EIG.

[ScottFromCalgary]

Oilers subject of ownership bid
Canadian Press

July 18, 2007 at 8:36 PM EDT

EDMONTON — An Edmonton billionaire who has tried twice before to buy the Edmonton Oilers has submitted a new proposal to buy the team.

Daryl Katz, owner of the Rexall Pharmacy chain, is believed to have put up more than $170 million.

Previous offers of $150 million and $145 million were made to the board of directors but were rejected.

This time, however, Katz has reportedly gone directly to shareholders with his bid.

All Katz needs is two-thirds of the votes for the sale to go through.

The Oilers are currently owned by 37 investors who bought the NHL team in 1998.

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

When Katz made his last offer in May, investors group chairman Cal Nichols insisted a sizable majority of the owners did not want to sell the team.

"There was more an appetite to stay," Nichols said at the time.

"This group has endured a lot of pain and agony and expense. It was more like, 'Surrender now?' There's brand attachment with a lot of the individual businesses and that's important here."

http://www.theglobeandmail.com/servlet/story/RTGAM.20070718.wsptrexall18/GSStory/GlobeSports

[fortroad]

I really want him to get that team now, at least partial ownership would be good!

[Hardhatdan]

Sell sell sell.

[Kevin_foster]

Oh man they need to sell to Katz.

Big Edmonton Supporter, funding for a new arena, financial stability.... do it do it do it!

[JAH]

Katz has the perfect mullet hair to match too!

[Coldrsx]

healthiest team in the nhl....

[JAH]

^ HA! No more excuses about the flu running around the team anymore!

[JAH]

Anybody hear about the Katz press release just now? Apparently, he is very keen on helping develop a new arena downtown. AND Katz wants to work with the UofA and build a "world-class" hockey training/practice facility on campus that will "work for the benefit of hockey in western canada".

[Coldrsx]

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

[jeffwhit]

EIG is going to have an uphill PR battle if they stall on this sale. While some of what Katz is suggesting seems a little too good to be true, I still think his ownership will do a lot to right that ship. The Oilers are hard to hate in their current state, which isn't how I like things.

[feepa]

dp... my bad

[feepa]

post

There has been a lot of discussion in recent weeks about my interest in
acquiring the Edmonton Oilers. While it's not appropriate for me to discuss
the details of my offer publicly, I do want to share my reasons for wanting to
buy the team and try to address at least some of the questions Oilers' fans
and Edmontonians are asking.

The first point I want to make is that I have a lot of respect for Cal
Nichols and the Edmonton Investor Group. They did a great thing when they came
together to buy the team and keep it in Edmonton. 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.

I was born in Edmonton, I live in Edmonton and I grew up here with the
Oilers during the glory days. I want to own the Oilers because they are
Edmonton's hockey team, because I want to build a winning team, and because I
think there is an opportunity, through the Oilers, to do great things for the
City.

From a business perspective, the Katz Group and especially our Rexall
brand have benefited from our association with the Oilers and Rexall Place,
and I think there's a real opportunity to build on that success.

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.
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.

Likewise, I have initiated preliminary discussions with representatives
of the University of Alberta about building a world-class hockey training
facility on campus for the benefit of the Edmonton Oilers, the U of A and
hockey in Western Canada.

Finally, I appreciate the many expressions of support I have received
from within the ownership group, across the city and around the NHL. 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. 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.

---

[chuber]

It is definitely only a matter of time.

I really like him coming out to say he will financially support a downtown arena and training facility at the UofA. That is great news!

[sync]

Go Katz!