This seems like a cruel joke, but it's not April 1st, so I guess you didn't write this, Andy. We can all hope, for a least a day or two.
 

Shit. When did you get that post up?
 

I'm going to reserve judgement until I hear what Terry Jones has to say. Good businessmen have been known to buy teams as a toy, you know
 

Shit. When did you get that post up?

Almost immediately. I got a good tip.
 

Funny. Some feasability study talking head is bigging up Katz's chartiable work on Team 1260. So he's a good guy now?
 

Yipppeeeeeeee!!!
 

I'm just a regular Edmontonian who believed in Cal Nichols and the EIG when they said that they said that group ownership was best for securing the Oilers future in Edmonton.

Say it ain't so, Cal. Say it ain't so.
 

Awesome.
 

"Welcome back to Rexall Place for the 2nd period of tonight's game.
The Atavan Oilers will be defending the Bristol-Myers-Squibb net to my right while our Gravol vistors, the Vancouver Canucks, will be defending the Abbot Laboratories end to my left.

Referee Don Koharski is about to dispense the puck..."
 

Let's see your $188 Million happy dance Andy!
 

Let's see your $188 Million happy dance Andy!

I'll wait until they hire Avi Schaumberg team President and Tyler Dellow General Manager. Then I'll dance my ass off.

Okay, I'm happy.
 

I'll be happy when I see that tool Pat Laforge pumping gas at my local Domo.
 

Merry Christmas, everyone!
 

188 mil is a nice 20% bump in Forbes' estimated 'value' from last month, so that probably represents the gains of the Cdn dollar and the great operating revenue that the Oil bring in. Congrats to Katz, the way he finessed Nicholls shows he learned from his first stab at it, something that Mr. Balsillie apparently hasn't yet done.
 

I tuned to FAN 960 just as Kerr was chatting with Gregor about this. I wasn't sure what was going on at first, then I heard the magic number of 39 owners, and thought, "This is too good to be true." Finally, almost ten minutes later, the name Katz finally drops.

Yippee-ki-yay, indeed.
 

Uh, Andy:

"I have great respect for everything Cal and the EIG
shareholders have done for the Oilers and for the City of Edmonton. I want to continue that tradition with a commitment to strong local ownership and an exciting vision for the Oilers. The centerpiece of that vision is a new world-class arena complex at the heart of a revitalized downtown."

Hands up anybody who thinks the mighty Katz won't do it without taxpayer bucks.
 

Hands up anybody who thinks the mighty Katz won't do it without taxpayer bucks.

Oh, I agree. It's only $100 million committed. But it's likely much, much more than the EIG was willing to pony up.
 

Two things:

Does this mean Lowe will be reigned in (in not fired) and the Oilers will move out of their debuilding phase?

I realize this is an important moment for Oilers fans, but where's the Christmas movie post title?
 

(*if not fired)
 

Rumour is that Katz and Lowe are buddies, so I don't know. This may actually entrench him even more. Which could be...not...good.
 

The Oilers media centre is known as the "Edmonton Journal Club"?

Uggh.
 

WHAT? Millard just said the new arena is already scheduled to be built.
 

Impressive turnaround, Andy.

I had to time my post to about a minute after the release went out (to avoid breaking an embargo).

Cal Nichols is happy to achieve "liquidity" and I'm happy that's he likely gone.
 

Sportsnet just ran a ticker saying that the team was purchased for $100M. Unbelievable.

This press conference is fascinating.
 

WHAT? Millard just said the new arena is already scheduled to be built.

Was that said in passing?
 

Sportsnet also just said that Forbes values the team at $146M. Unfortunately, that is absolutely incorrect.

That's three errors in a row now.
 

Where's the rest of the money for any new arena expected to come from?
Check the nearest mirror.
 

Was that said in passing?

Sort of. He was talking to Lebrun about Katz's commitment to a new arena, and said that.

Sounds like Katz made a much smarter bid this time around.
 

The "explosion of growth" that happens around downtown arenas? Oh, God.
 

I love rationale number 4 for the change of heart: Dennis.

Kind of funny that Cal came clean and said that a single owner has a clear advantage in terms of decision-making. He did, however, go on to try and blunt the harshness of that comment, by applauding the effectiveness of the large group of individual minds involved in the EIG.
 

It's funny how little the sports reporters seem to know about the Oilers ownership structure.
 

Wonder what Cal Nichols gains from going public with this on his own? Unless of course he already has talked to a majority of shareholders.

The "Downtown explosion" argument is bunk. Game nights here in Van are only busy around the final horn as everyone files onto the Skytrain and zips off into suburbia. And this is a downtown that actually is designed well. HotDog stands do well ...
 

Cal sounds pretty much fed up with running the team.

Oh wait, Bryan Hall is speaking - I have to stop typing to hear this --
 

I think Lebrun is correct. This isn't over yet. Basically we know Nichols wants out. We believe a bunch of others want it. But we don't know if everyone wants out, and how much any reluctant owners may fight the sale.
 

A fancy arena downtown is unlikely, IMO, to stimulate the neighboring area on a Jan 22nd night when it is -28C.

If you wanted to make the argument that it would stimulate the downtown to build a 55,000 stadium after EDM had landed a MLB team, I might buy that argument. At least it would be 30,000 people in that area 81 times a season, at a time of the year when people are willing to hang out before/after a game.

Though that still doesn't mean I think the gov't should pay for it, or at least not a large portion of it.
 

NOOO. I wanna hear the press conference!
 

Question: if some owners don't want to sell, can Katz still buy shares from those who will—i.e. become majority shareholder and exercise de facto control?
 

Question: if some owners don't want to sell, can Katz still buy shares from those who will—i.e. become majority shareholder and exercise de facto control?

I forget how it all works, and I have to admit, I got confused listening to Nichols explain all that.
 

Sportsnet now says Katz is the 13th richest Canadian, after earlier saying he was the 4th. They are really on the ball tonight.
 

Question: if some owners don't want to sell, can Katz still buy shares from those who will—i.e. become majority shareholder and exercise de facto control?

He can if he's approved as a buyer by 60% of the shares. If he gets that approval, he can buy as many as they are willing to sell.

I believe the 60% only applies to approval of new owners, and that he only needs to buy 50% to have a controlling interest.

He said last time that he wasn't interested in partial ownership, but he also said it was a final offer, so who knows?
 

"Where's the rest of the money for any new arena expected to come from?

Check the nearest mirror."

With $100 million of private money and a backer like Rexall?? Tell me that project isn't eminently financeable privately - which is what has been mentioned more than once.

I'm not sure why its been overlooked, but Mandel has said more than once that public money is off the table. Everybody else has been pushing the "money outta my pocket" angle. It does make better copy though.

The deal is done guys. Only the timing of the official announcement is in question.
 

Apropos of nothing, I saw the PIT feed when Crosby was in town and the broadcasters were talking like the arena was a done deal then too. Not sure where they got that from.
 

David S, you're insane. %100 million will likely be only 20% of the cost of a new building considering the construction cost inflation in Edmonton. Mandel can say what he wants, there will be no building without massive public funding. He's probably just hoping the Province picks up the tab.
 

Rage - You're kidding, right? How much did you put down on your house? I'd be very surprised if you put 10% down, let alone 20%.

I'm actually amazed some of the other business minded guys haven't chirped in here yet. This is a private placement deal made in heaven. It don't get any better than this. Not to mention that a guy like Katz has probably figured it all out anyways - its why he's as successful as he is.

Although, if public money is offered, only an idiot would turn it down. Then you'd have to blame whatever public official OK'd the deal. But I can tell you it would be a very bad call in the current political climate.
 

What definition of public money are you using David? I'd be willing to bet that there's some form of public subsidy but that Mandel et al. are going to do their damndest to argue that it isn't really public money.
 

First off...WOO HOO! Heard this while driving around this afternoon. Awesome news.

Also heard a replay of Cal Nichols phone conversation with Stauffer and Griffiths this afternoon. This is from memory though, so there's bound to be a mistake or two. That said, here's the gist of what happened in Sept, Oct Nov timeframe:
- EIG board recommended the retirement asset value remain @ 125 million
- EIG voted however to increase the retirement asset value to 135 million
- whether it was the same meeting or not was clear, but 50% of the owner's indicated they wanted to sell [sounds like Mr. Katz assertion that he was approached by some within the EIG is a lot more accurate than the theory he was acting uninvited (as advanced by some of the EIG last summer)]
- according to Mr. Nichols, a round of financing would have been required for the remaining 50% to buy the shares of the 50% that wanted out
- additionally, Mr. Nichols said another round of financing would have been needed fairly soon given the age of some in the remaining group as their share become available
- the new arena would have meant yet another round of financing

- this time around the offer is for the shares within EIG, rather than a sale of EIG as an entire asset. This means a dramatically different after-tax value for those that sell their shares.

Given all of that, it's apparent why there's a change of heart. The landscape was about to change drastically, and the offer itself was more attractive.

The first deadline within the offer is apparently the end of January, by which time the EIG share holders have to indicate whether they will their shares to Katz. The deal is not contingent upon 100% approval, but further details weren't revealed.

As for Cal Nichols himself, he said the board wanted to renew his two year term. His family felt otherwise though, so he declined.

Mr. Nichols was quite candid that he disliked the aspect of the job that took the majority of his time--managing a group of that size.

All in all, it was an interesting conversation.

I applaud the EIG for their work to keep the Oilers in Edmonton a decade ago, and I applaud their ability to see that it's time to pass the torch. It was pretty evident from certain perspectives, but that doesn't mean it's even vaguely apparent from the inside.

Oh, in closing...WOO HOO!
 

Well I guess in the micro sense, public money might entail the city (us) kicking in a substantial amount of cash up front, with the rest privately financed and/or tax and property value concessions.

In the macro sense, it would probably entail a "grant" or such from the government of Alberta. This is probably the route Mandel would advocate as not being "public" in the sense Edmontonians aren't in the direct line of fire tax-wise.

Or maybe a combination of both.

Regardless. I would think Katz uses his cash investment and privately finances the balance with his own resources as collateral. He's worth $1.6 BILLION privately, and the Rexall empire obviously alot more. I think he's good for it. Eventually he owns the whole deal and "Rexall Place" becomes a literal translation. That's the way he rolls.
 

I'm not sure why its been overlooked, but Mandel has said more than once that public money is off the table.
David S, If no taxpayer funds go into building a new playpen for the Oilers I will take out a full page ad in the Edmonton Journal with your photo under the heading The Genius I Admire. Plus, I'll drive you to my bank, take out all my money, and hand it to you.
Just so we're clear, taxpayer funds include any money that comes from any level of government, whether it's called a loan, a subsidy, a grant, a partnership interest, an interest-free loan, lottery money, etc.
 

AV- That's a fair comment. I guess I'm relying on the "benefit of the doubt" here. It seems we're crucifying Mandel and the like out of fear, rather than knowledge. It was stated in today's Edmonton MSM that any lobby for public funds would be precipitated by a plebiscite. No doubt we all know how that would turn out.

I'm just saying that in this case, private financing is definitely possible, much more than with the EIG in control. And it has been mentioned previously as part of the initial discussions.

The question that you have to ask yourself is: "If the new arena was not funded by ANY public funds (however you define such), would you approve of it's construction and location in downtown Edmonton?"

For me the answer is a definitive yes.

(For the record, I'd be willing to bet EPCOR got some form of public assistance for their new office complex.)