KATZ SELLS PART OF EMPIRE FOR COOL $920M

Wanye
January 31 2012 09:22AM

 

The small remaining fraction of folks who whisper of Oilers owner Daryl "Kay-Z" Katz having less money than one would believe can eat a triple helping of shut up pie. Pictured above in an imaginary press conference with his namesake rapper Jay-Z, He who was already rich is now REALLY REALLY REALLY rich.

The man who signs the cheques Chez Oilers and is often chastised for not talking to the media about the Oilers current (insert woe here) problems reminds us all what he is doing with his days instead. And that seems to be making boatloads of cash. 

Says Post Media:

Oilers owner Daryl Katz has sold a big chunk of his privately owned pharmacy business to U.S. giant McKesson Corp. for $920 million.

In a deal announced late Monday, McKesson said it signed a purchase agreement for Drug Trading Company Limited, the independent banner business of the Katz Group Canada Inc., and Medicine Shoppe Canada Inc., the drugstore chain’s franchise network.

MONEY AIN'T A THING

That is a lot of smoke. Suddenly one understands the finances required to calmly sit through the Horcoff contract, sign Khabibulin's pay cheques without batting an eye and watch the team languish in 30th place year after year after year without feeling the need to fire those in charge. 

Suddenly the next time someone exclaims "dang that Tom Gilbert is a rich mamma jamma" you can roll your eyes and say "that ain't even not no kind of money. You should see the guy that signs his cheques!"*

As Chris Rock once roughly said "there is a difference between being wealthy and being rich. Shaquille O'neal made over 20 million dollars last year. He's rich. But somewhere there is a guy that writes his cheques and says 'here you go Shaq! Go buy a bouncing truck!" That guy is wealthy."

RARE GLIMPSE ON KATZ CO.

This transaction provides a look at the state of Katz' companies rarely seen by any of us common rabble building stick huts outside his walls:

"Katz Group’s Rexall stores are not part of the deal. Katz plans to expand the Rexall chain by incorporating the 18-store Dell Pharmacies chain in southern Ontario. In a separate deal, Katz Group announced the purchase of the Dell chain Monday for $70 million (Cdn).

Katz’s Drug Trading firm is the marketing and purchasing arm for a network of more than 850 independently owned pharmacies across Canada, the majority of which operate under the I.D.A. and Guardian brands."

It also provides some insight into the future plans of Rexall, the breadwinner upon whom the Oilers fortunes rely:

“This transaction unlocks significant value through the sale of two outstanding but non-core assets,” Katz said in a release. “We will intensify our focus on our corporately owned Rexall and Rexall/Pharma Plus store network to accelerate the growth of our Rexall brand and the value proposition that it represents to our patients and customers.

“We will also accelerate the growth of our related real estate interests.”

By "our" Katz means "his" and by "interests" he means "everything." This deal seems to suggest he can continue to operate the team spending to the cap whenever the Oilers brass are able to find time to take the team out of the basement of the league.

BALLING OUTTA CONTROL

It also suggests that Katz is now powerballing rich - second only to the previously mentioned Shaun Horcoff among Edmonton's richest citizens.

Finally the unnamed industry analyst speaking throughout the article speculated on Katz's substantial net worth:

“Oh yeah, he’s way in the money. He’s deep. He could build an arena by himself. And you know if it was a really good idea to spend $450 million on an arena, if there was a really great return on it, he would do it, right? That tells you everything you need to know about arena math.

He’s a pretty sharp businessman, and he’s made a lot of money off this set of assets.”

He's way in the money? He's deep? Who did they interview about this exactly? Kevin Lowe? An old tymey gambler from the horse track in Hoboken NJ, caught in a worm hole and sent back through time?

Whatever. Katz is mega-mega-mega rich and this should mean the Oilers are on titanium clad iron ore financial footing for years to come.

A FINAL TIDBIT

The article also seems to suggest that Katz may not be finished selling off parts of his sprawling empire:

“The (surprise) wrinkle in this deal is that it doesn’t include the corporate stores,” said one industry analyst, who spoke on condition of anonymity.

“There’s a bunch of those left, but they have a long-term distribution deal with McKesson. So I have no idea whether Katz intends to sell those in a separate deal, but that’s possible. Maybe the way to maximize the price for his company was to sell this in two separate deals. But anybody who buys those (corporate) stores has to be distributed to by McKesson for the next few years.”

More money! More! Hang those who speak of less. Jordan Eberle needs his 54 year- $12 billion dollar contract right away!

#WINNING

*We assume this is how many folk talk.

09049f03ecb006ab29372206f2a88f75
Blog so hard motherf**ckers try and find me. Email me at wanyegretz@gmail.com or tweet me @wanyegretz provided it is about Jordan Eberle or babes.
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#1 Archaeologuy
January 31 2012, 09:38AM
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Now that Katz wont be so distracted by this business deal he's gonna be pissed to find out that the email he glanced at briefly from K-Lowe that said, "Everything is Great. Projecting as 2nd overall!", was in reference to the Draft, not the Standings.

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#2 Archaeologuy
January 31 2012, 09:43AM
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Reagan wrote:

Doesn't he still spend 60% of the year in Vancouver?

Boo Katz! Vancouver sucks. I'd rather the team not have an owner than one who lives part-time in an infinitely better climate.

In fact. I'm still pissed at my Grandma for Wintering in Arizona. She can go to Aech Eee Double Hockey sticks!

BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

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#4 Talbot17
January 31 2012, 09:24AM
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KATZ must FIST more $$ out and make it rain like JAY Z!!!

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#5 OB1 Team Yakopov - F.S.T.N.F
January 31 2012, 10:30AM
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Deep oil sheds a tear.

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#6 vetinari
January 31 2012, 10:09AM
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If Katz is now living on the moon, I bet Lowe and Tambi are both breathing sighs of relief.

Katz (on moon base, "That '70s Hair"): "Have the android butler bring in my morning paper."

Lackey #1: "Yes sir, here he is now sir."

Katz: "Let's check out this morning's business and sports section." [flipping pages frantically] Hmm. No mention of our billion dollar drug deal this week [laughs while doing air quotes]. That Messier fellow keeps stacking up the points for us, doesn't he?"

Lackey #1: "...."

Katz: "Wait a minute. This... paper... is from 1988??? TAMBELLINI!!!"

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#7 Reagan
January 31 2012, 09:30AM
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Doesn't he still spend 60% of the year in Vancouver?

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#9 The Farmer
January 31 2012, 10:11AM
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Sorry guys isn't it obvious, the wool is being pulled over your eyes, McKesson is Shawn Horcoffs wife's maiden name. They are obviously just doing this deal because they feel bad for the last one. ~

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#10 ItsTheBGB
January 31 2012, 11:23AM
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I think a $920 MM palace is what the Oilers should play in. Solid gold statues of the three kids plus the retired numbers crew. MARBLE EVERYTHING, including really detailed statues of lions and gargoyles throughout the concourse. A really big fountain like at Vegas hotels. And everything else that I can't think of.

Do it Katz.

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#11 bdiddy18
January 31 2012, 11:25AM
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Now that the sale is public which city Councillor is going to propose that Katz just build his play dome by himself?...... again

cue the fans in as well telling moneybags to just fork over the cash and "give us" the building.

like it was pointed out in this piece if Arena building was a profit making money machine...the doors of the new arena would be slated to open at end of northlands lease... just goes to show you not even a billionare would go solo on the project.

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#12 Deep Oil
January 31 2012, 11:55AM
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Here is a post from 3 years ago, McKesson is an angel.

http://oilersnation.com/2009/2/5/the-cracker-katz

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#13 justDOit
January 31 2012, 11:58AM
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I'm no economist, but I would consider selling off stores a bad thing, unless they were 'Typewriters Are Us' stores.

Anything to do with the pharma industry seems to be a license to print money, and cashing out of that (even in a small way) smells funny.

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#14 Deep Oil
January 31 2012, 12:00PM
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Anyone wonder the following:

1) Who decided to sell these business units ?

Daryl Katz banker ? Barry Katz Barry Shurman - Apotex ? John Karvellas (smartest lawyer in edmonton)

2) What was the liability or loan on this asset ?

3) What tax liability or protection occurred with the sale.

4) Why did the city of edmonton need to float DK on the $100 million he promised the city, seems like a Brick Furniture Loan with no money down, low interest with the city playing santa claus. Seems that regular financing said no. A reminder peeps, that the Skydome was built for around $400 million and sold to Rogers for $25 million. A new rink in town is being funded mostly with our dollars with naming rights, beer rights being given away. Oilers are not a moveable asset, especially when Bettman has PHX, CBJ, NYI, FL, and Dallas bleeding. Here is a great article on the value of arena - stadium naming rights and the value it brings...... www.adweek.com/news/advertising-branding/what-does-insurance-company-need-stadium-137795

Enough said, I think I will pull the wool over my eyes and head back onto the golf course for some rest and relaxation - go coyotes.

I cheer for the Gilbert Brule hard, since he is their power play specialist and on goal spree.

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#15 Archaeologuy
January 31 2012, 01:16PM
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@Deep Oil

From this point on I'm going to create my own narrative as to who you are and why you have an axe to grind.

So far this is it.

Deep Oil is actually former Play by Play great Rod Philips, now "enjoying" his time as a snow bird in Arizona. Obviously deeply emotionally invested in the Oilers and incredibly well connected. That said, he is entering the twilight of his life and losing touch with reality.

This is of course compounded by the fact that his retirement was forced upon him by Daryl Katz. It was staged to look like the retirement was actually of his own volition, but it was made absolutely clear behind closed doors that Rod was not welcome behind the Mic any longer. The tensions between reality and fantasy, Philips and Katz, the excitement of NHL life and the boredom of living in exiled retirement have created a dark and bitter alter Ego in the form of Deep Oil.

Rod can now feel as if he wields power by suggesting things that cannot possibly be verified without close knowledge of the subject. In addition to this feeling of empowerment these suggestive messages on internet message boards allow him a medium to accomplish his primary objective: the grass roots assassination of the Katz empire's reputation.

Hiding since his last major failure, the announcement of progress in the building of RX2, he could not prevent himself from lashing out at this latest news. And now, between Arnold Palmer's and Shuffle board, Rod/Deep Oil waits, ready to plant the seeds of doubt that will eventually germinate and grow out of control, devastating the Katz Empire.

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#16 pelhem grenville
January 31 2012, 03:50PM
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...Arch...revelations like no other i've heard

what was Katz beef with Rod...?

i feel bad that my friend has been treated with what appears to be such distain and that it has driven him to embody this dark and bitter alter ego...

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#17 sizedoesmatter
January 31 2012, 03:51PM
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Reagan wrote:

Doesn't he still spend 60% of the year in Vancouver?

If you had his money where would you live 60 % of the time. Bruce Wayne is the best boss the Nuge could have

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#18 ubermiguel
January 31 2012, 04:46PM
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"He could build an arena by himself. And you know if it was a really good idea to spend $450 million on an arena, if there was a really great return on it, he would do it, right? That tells you everything you need to know about arena math."

I couldn't have said it better myself. If an arena was a money-maker he would have private capital lined up around the block to get in on it. He doesn't. Therefore it is a money-loser.

Sell me on the other reasons to build an arena (e.g.: prestige, Rexall maintenance costs continue to rise, downtown improvement, Edmonton deserves a nice rink because we're so awesome), but not the money making scheme.

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#19 Oilcruzer
January 31 2012, 07:16PM
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From the story...

"The analyst said the $920 million price tag is roughly in line with his estimate of the value of the assets being sold. Katz Group’s remaining assets are likely worth slightly less than that, he said."

Hmmm. The rest is worth slightly less. So he's only worth about 1.8 BILLION.

I wonder what a person does to get write off's?

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#20 OB1 Team Yakopov - F.S.T.N.F
January 31 2012, 08:41PM
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Deep Oil wrote:

Anyone wonder the following:

1) Who decided to sell these business units ?

Daryl Katz banker ? Barry Katz Barry Shurman - Apotex ? John Karvellas (smartest lawyer in edmonton)

2) What was the liability or loan on this asset ?

3) What tax liability or protection occurred with the sale.

4) Why did the city of edmonton need to float DK on the $100 million he promised the city, seems like a Brick Furniture Loan with no money down, low interest with the city playing santa claus. Seems that regular financing said no. A reminder peeps, that the Skydome was built for around $400 million and sold to Rogers for $25 million. A new rink in town is being funded mostly with our dollars with naming rights, beer rights being given away. Oilers are not a moveable asset, especially when Bettman has PHX, CBJ, NYI, FL, and Dallas bleeding. Here is a great article on the value of arena - stadium naming rights and the value it brings...... www.adweek.com/news/advertising-branding/what-does-insurance-company-need-stadium-137795

Enough said, I think I will pull the wool over my eyes and head back onto the golf course for some rest and relaxation - go coyotes.

I cheer for the Gilbert Brule hard, since he is their power play specialist and on goal spree.

Katz >>>> deepoil

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#21 David S
January 31 2012, 11:58PM
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Archaeologuy wrote:

From this point on I'm going to create my own narrative as to who you are and why you have an axe to grind.

So far this is it.

Deep Oil is actually former Play by Play great Rod Philips, now "enjoying" his time as a snow bird in Arizona. Obviously deeply emotionally invested in the Oilers and incredibly well connected. That said, he is entering the twilight of his life and losing touch with reality.

This is of course compounded by the fact that his retirement was forced upon him by Daryl Katz. It was staged to look like the retirement was actually of his own volition, but it was made absolutely clear behind closed doors that Rod was not welcome behind the Mic any longer. The tensions between reality and fantasy, Philips and Katz, the excitement of NHL life and the boredom of living in exiled retirement have created a dark and bitter alter Ego in the form of Deep Oil.

Rod can now feel as if he wields power by suggesting things that cannot possibly be verified without close knowledge of the subject. In addition to this feeling of empowerment these suggestive messages on internet message boards allow him a medium to accomplish his primary objective: the grass roots assassination of the Katz empire's reputation.

Hiding since his last major failure, the announcement of progress in the building of RX2, he could not prevent himself from lashing out at this latest news. And now, between Arnold Palmer's and Shuffle board, Rod/Deep Oil waits, ready to plant the seeds of doubt that will eventually germinate and grow out of control, devastating the Katz Empire.

Brownlee knows who Deep Oil is. It isn't Rod, that's for sure.

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#22 Sheldon "Oilers Fan for Life!!!"
February 01 2012, 12:34PM
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Reagan wrote:

Doesn't he still spend 60% of the year in Vancouver?

Just because he likes the rain and the sun and the trees does not mean he likes...

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#23 Pajamah
February 01 2012, 12:53PM
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David S wrote:

Brownlee knows who Deep Oil is. It isn't Rod, that's for sure.

Its obviously Treenasoil..........*crickets

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