RICH PEOPLE AND ARENA TALK

 

Two of our favourite parts of the new Arena debate is when people scoff at Daryl Katz offering to put 100 million dollars towards a City owned arena and when they later roll their eyes when it is suggested that owning a Pro Sports franchise isn’t a very lucrative business.

It’s no secret that we support the new arena project, think that the City should be involved in a way that provides an appropriate return on their money and that also encourages development in North Downtown Edmonton, depicted below:

 

We remain of the mind that in these unsteady times owning a Pro Sports franchise is a fragile business at best, testing the financial resolve of the uber rich who may already be feeling the pinch economically in other parts of their business empire.

Having an owner ready to contribute $100 million dollars on top of having purchased the team for an inflated value and having subsidized the team through what must have been a non-profitable last few seasons is a rarity in this economy and shouldn’t be dismissed so easily.

The trouble that the NHL is having with the sale of the Phoenix Coyotes is a prime example. According to a recent TSN article "The franchise never has turned a profit since moving to Arizona and is expected to lose at least $20 million this year."

Now we didn’t major in businessology when we attended the Laurielle Beauty Academy and Community College, but even we know that a company that loses $20 million a year when it’s salaries are hilariously low and even somehow made the playoffs ain’t the greatest company since the days of Adam Smith. One can hardly blame Ice Edge Holdings from having a good long think about the Pros and the Cons of keeping a team in the Desert regardless of what Gary Bettman says.

AND IT AIN’T JUST PHX

The problem of increasingly stretched pro sports owners isn’t just contained to Phoenix. The largest investor in the St. Louis Blues has just notified majority owner Dave Checketts that they intend on selling their interest in the team citing a bunch of fluff about "building a strong foundation for success" and "being tired of subsidizing losses that include the employment of Louie, the most stereotypically dressed ‘Blues’ related mascot ever created."*

 

*Actual mascot, not actual statement

AND ALSO THESE GUYS

Another example comes from Dallas where the Mavericks have come under the spotlight of scrutiny as Ross Perot sues Mark Cuban over how the team is run. If you were amazed to learn that Ross Perot – the delightfully hilarious business tycoon that was oft parodied by Dana Carvey back in the day when he ran for President of the US – owned part of the Mavs, you are not alone on this one.

Nonetheless, Perot has basically accused Cuban of losing a mind bogglingly large sum of money over the past few years in an attempt to win an NBA title:

"Mark Cuban’s financial management of the Dallas Mavericks was described as “reckless” in a lawsuit filed Monday in Texas by a minority investor in the team who accused the flamboyant owner of amassing net losses of $273 million and debt of more than $200 million.

The lawsuit partly opens the Mavericks’ books, showing some results and projections. Perot said the team generated a net loss of more than $50 million in the year ended June 2009 and a net cash flow deficit of $176 million since 2001. Looking ahead, Perot said that internal projections show additional losses of $92 million through 2013 and debt rising to $281 million."

Great Gods almighty! That is some considerable sum of money isn’t it? Losses of $273 million and debt of $200 million on a team? A team that was purchased at an incredibly inflated value of $285 million back in 1999-2000? Can someone please remind us again why the NHL prevented Cuban from blowing all of this money on the Pittsburgh Penguins?

It’s interesting to note that Cuban doesn’t bother refuting that the team has lost a boat load of dough in the time he has owned the team and instead prefers to talk like this:

"In an e-mail message to The Dallas Morning News, Cuban said: “There is no risk of insolvency. Everyone always has been and will be paid on time.” He added that “being in business with Ross Perot is one of the worst experiences of my business life.” “He could care less about Mavs fans,” Cuban continued. “He could care less about winning.”

Now we aren’t going to sit here and tell you that Cuban needs the money he lost  or that Perot is headed into the poor house. Cuban sold broadcast.com to yahoo at the absolute height of the dot com boom for an eye popping $6 Billion dollars and then proceeded to pump the real proceeds into a little company called HDnet.

Zounds. He can afford to pay the Dallas Mavericks to lose this kind of money for a looooong time before it would cause him real concern. What’s 500 million to a billionaire? That is like one of us normal people going to Subway and asking for double the meat right?

It is interesting to note that this Perot v Cuban lawsuit is also shedding some unwanted publicity on the sports empire of Tom Hicks, who owns both the Texas Rangers and the Dallas Stars:

"The accusation that the Mavericks have too much debt and are insolvent is resonant in the Dallas area. Stung by the global credit crisis, Thomas O. Hicks’s sports company, which owns the Texas Rangers and the Dallas Stars, stopped paying interest on $525 million in debt in March 2009, and Hicks has put the Rangers and the Stars up for sale. A group led by Chuck Greenberg and Nolan Ryan has agreed to pay $575 million for the Rangers, but the sale is embroiled in a dispute among Hicks, his lenders and Major League Baseball."

AND NOW RELATING IT BACK TO US

Voicing your opinion that the City needs to be very careful how it handles the proposed arena development is fine. Loudly screaming that the arena should be built by Daryl Katz himself using only a steamshovel and a borrowed bag of cement is fine too.

But all parties involved should count their lucky stars that there is a super rich Edmontonian fronting the losses our local squadron and looking to develop an arena at all, as opposed to hastily putting the team on the open market or ceasing all debt payments on the loans supporting the team.

After all, things could be much worse:

UPDATE

Per our friends at jeanshortsandbaggedmilk, an excellent article on NHL owners looking to walk away can be found here.

  • HDNET is a piece of crap. The only show I watch on there is that one that’s non stop movie trailers. I like a good movie trailer. They’re perfect for my attention sp…hey look, Bob Newhart is gonna be a the River Cree.

  • Great article Wanye – is this the third part of your “Business of Hockey” trilogy that died after 2 articles?

    How much longer before we lose this commissioner who is willing to bankrupt cities? How many chances does Glendale get? We beat the Jets on the way to every Stanley cup victory – that is what has been missing in Edmonton for the last 14 years.

    I don’t understand how you can keep turning billionaires away from owning teams.

    • I met all my Business of Hockey obligations I think. It’s the three part “naming of the 13th Captain” that has parts 2 and 3 half written keeping me awake at night these days.

      That and the worry of life after Hanna Montana next year.

      • What’s your pulse on this whole arena thing? I know that everything about money you have learned at the bottle depot & liquor store, but you seem pretty good at it.

        An article Jeanshorts posted on twitter yesterday from the Hockey News went into depth on the mess of a few ownership groups.

        • I don’t know what the deal is exactly with how this is going to go down b75. I would suspect that most of the negotiations are going down behind closed doors with the various levels of government – officials elected with the responsability of facilitating (and sometimes financing) projects of this magnitude in Edmonton.

          I think that Kay-Z and company need to do a WAY better job of selling this to the people and to date haven’t done a good job in this regard. Hopefully that will change.

          I just finished reading the biography of Wild Bill Hunter and there were some really interesting insights on building RX1 back in the day.

          Apparently there was plans to build the arena on the site of the Labatt Brewery on Calgary Trail completely with private dollars. Then Northlands got involved, had the arena moved to its current location and the entire thing was funded by City, Provincial and Federal governments.

          As I *recall* the arena cost something like 40 million bucks in 1970s dollars. Looking back that is a slam dunk of an investment for the Governments, IMHO.

          Good debate Nation!

          • That’s the problem I have with this whole deal. People have a serious problem with handing over a cheque to Katz to build this thing. 40 million back in the day must have been astronomical back in the 70’s too.

            The whole reason some of the old ownership group was holding out WAS the new arena possiblity. There are some real opportunities to make some money on everything besides the arena. Probably the reason Bill Butler & his 1% stake were having a problem letting go.

          • Deep Oil

            In this big little city, Northlands is a conduit for control, cash, and capital. You have a newly diminished board, with out of touch business people mixed with city and provincial delegates and some senior hanger ons – see

            http://www.northlands.com/board-directors

            If Northlands loses the management of Rexall 1,
            and the lucrative parking revenue each night,
            (note the parking lot was paid for the taxpayer via AGLC – thank you Dr Westbury) then the power model shifts, and the horse racing model loses more money than you can say Jerry Moyes.

            If the Katz group did not desire it’s own downtown hamlet on your dime, then Northlands power and contnued cash flow via AGLC would continue. This is now in jeopardy, and the 100 year old farm fair follie is grabbing it’s suspenders and jockeying for position in this balance of power using other people’s dollars.

            Katz and Northlands are both taking the Edmonton taxpayer for a ride, just not sure if it is the Capital EX or the RX.

            80 – 20 put up or shut up.

            Remember that Vancouver, Toronto, Ottawa and Montreal are all private rinks paying property tax, and we have this owner holding his out after losing his option on the land to WAM developments and overpaying for the team.

            Make the playoffs so we don’t have to listen to your beer salesman president claim that you lost money again, we don’t care ….. it is your business not ours, and it appears it is almost impossible to lose your NHL team these days.

  • FIRST, I have to say that I agree with you about the Edmonton whiners going on and on and ON about how Katz should front the entire thing himself. We all know the city will want to be involved and I hate to say that means bucking up some cash.

    I was at the arena presentation last week. If you discounted the fact that there were as many people there wanting to be seen as actually interested in the idea, it was still a pretty decent turnout. Yeah, there were alot of negative comments on the little slips of paper, but I attribute that to the Katz group kind of botching the project launch. If they had taken a wider point of view and NOT talked about financing before they had something workable nailed down, they’d have a WAY easier time.

  • I’m still super cloudy on just what exactly it is that’s causing so much distention between people on this issue.

    Is it basically the city is like “Yeah you can build an arena, if you pay for it yourself. BUT WE WANNA USE IT TOO”

    While Katz is all like “Let’s make the city way better by building a kick-ass future facility, that will bring in tax revenues and jobs, etc, etc. I just need you to throw in a little cash so I can keep sending my chubby, red-headed kid to some crazy expensive boarding school and live in my marble and glass house”?

    Or is it more so a bunch of old, lame people being old and lame like they always do when someone mentions “taxes”?

    • “Or is it more so a bunch of old, lame people being old and lame like they always do when someone mentions “taxes”?”

      ~But we were so close to being done with taxes. Maybe just a couple years to pay for the LRT and then BAM, we were all done. Never have to pay it again. Now, if we pay for this new Arena, probably another hojilion years of taxes. We were like that cop that gets shot 1 day before retirement in every bad movie.~

      • I don’t own, uhh, well anything really, but definitely not any real estate, so I probably shouldn’t say too much about something I don’t understand, but I always find it funny that no matter what a city proposes, there’s always a bunch of older people screaming about not wanting to pay more taxes. But, as far as I know, it’s not like people have ever had to pay an extra 500 bucks a year or something outrageous. What’s the big fuss about?

        • cableguy - 2nd Tier Fan

          people just like to have something to bitch about.

          if it isnt the arena, they will bitch about something else. then they will bitch because nobody wants to come here and listen to them bitch.

          it is really just a viscious cycle of bitchin’…bitchin about bitchin…bitchin…

    • OB1 Team Yakopov - F.S.T.N.F

      Theirs a legit beef on both sides, with the little I know on the issue it appears Katz is looking for an absolute sweat-heart of a deal.

      Assuming that was just his opening point to the negotiations, then joe public is overeacting and the process needs to continue… but if Katz actually expects the current deal to go through, then he’s looking to bend the city over.

      • Yeah I remember thinking a few months ago “man does Katz just expect them to give him this arena for free and let him do whatever he wants with it” but I’ve since forgotten most of the details.

        I’m not too concerned what happens with this, considering I have no inkling to ever move back, but it sounds like it would be awesome for the city (outside of those dreaded tax hikes) and I would like nothing more than to be able to come home for Christmas, go to an Oilers game and be able to walk through the concourse without rubbing against 900 people, and be able to sit comfortably in the seats. Seriously I’m like 7 feet tall. My legs do not fit in those 1970’s built seats. Help a brother out here Daryl!

      • I haven’t seen or read any actual proposals yet. Do you know where I can find copies of what exactly has been proposed?

        While I care about what happens with the team I have not really been able to get into it much, probably because I live in Calgary and it isn’t going to make a big difference to me either way.

        • OB1 Team Yakopov - F.S.T.N.F

          Like I said, I don’t know a whole lot about the situation (because quite frankly I don’t really care) but from piecing together the 100 million offer, a couple of blogs on here, and scanning Deep Oil’s drivel, it apears like Katz is coming in with a low ball offer.

          • Why wouldn’t he? It is in his interests too cut the best deal he can. Interest based negotiation rarely is a quick and dirty resolution. We are talking about lots of cake here and haviing some posturing and back and forth discussions on this front is to be expected.

          • OB1 Team Yakopov - F.S.T.N.F

            I didn’t say he shouldn’t do it. I’m a capitalist, I never fault a person for trying to make as much $$$ as they can.

            Refrence back to the post I originally replied to, someone else asked what was causing so much distention on the situation. IMO, that is what the major issue (one of them) was about.

  • Quicksilver ballet

    We continue to up the antee for hockey here in Edmonton, how much longer can this market continue to pay these outrageous ticket prices. It won’t take much to go wrong before we end up in a similar situation as Glendale….. a 65 cent dollar would certainly create some difficult scenarios up here. I’m not sold on the arena but i am in favour of all the other opportunities that will occur with this project…..atleast they should be able to pay their way.

  • DK0

    YOU CAN’T SAY SKEET ON THE RADIO!?!?

    what? its a Wanye article, isn’t this where we’re supposed to yell random things that have nothing to do with the subject?

  • Would anyone expect any kind of intelligent, unbiased debate on a website devoted to Oilers hockey? Hardly.

    What is lost on many readers is that there are a lot of “casual” hockey fans who could care less if an NHL team stays in Edmonton.

    There are even more taxpayers who see cuts in education, healthcare and infrastructure.

    Give me a choice of having lower tuition at the U of A or having the provincial government pitch in for something which unlike education is frivolous and I and many others would say, screw hockey.

    Katz has already changed positions on funding. Didn’t he start this whole thing rolling by saying he would pay $100 million out of the $400 million dollars towards an arena? That changed.

    Now he is saying he will build around the arena. Will he keep his word on that?

    Why should taxpayers build something where he gets 100% of the profits from a building taxpayers paid for? I see plenty of new Rexall Drugs being built here in Edmonton and I don’t see tax dollars paying for those.

    Lose the team? Unlikely. Katz isn’t going anywhere having built a $20 million dollar house in Edmonton. There is abolutely NOBODY who can buy this place unlike in Calgary.

    Buyers aren’t tripping over themselves to take over the Phoenix franchise and one of the investors of the St. Louis Blues wants out of that deal.

    If Katz wants public support perhaps he should be a little, make that a lot more upfront about funding and more concrete about what WILL be built.

    All I see from him and his posers is huffing and puffing. Nothing I would want to support.

    -30-

    • Dont pull the Tuition vs Arena card. That isnt the choice. The Conservative government wont be pumping tons of money into healthcare or education or other “frivolous” and “trivial” pet projects after the Arena is denied.

      And while we’re at it, lets not forget that the Oilers would only be using the facility less than 50 nights out of the year. 89% of the year other Edmontonians, outside of the Hockey fans, benefit from the enhanced entertainment complex.

    • Ducey

      Another fine student at the “Laurielle Beauty Academy and Community College” I see.

      So he is not going to move the team because he spent $20 million on a house.

      Lets see: Quebec City builds an arena for him at no cost. Edmonton makes him spend $400 million plus land. Yeah, I am sure the house will keep him here.

      Is Jan Reimer your economics prof?

      Your fellow NDP’ers have taught you well but the debate is not education or the arena. The debate is what do we want to spend our inrastructure money on. An new overpass to more box stores, Expo, a train to Calgary, Calgary’s new arena?

      If the arena is done right, it will help ensure Edmonton has a future where graduates from your fine College would actually like to live. Its called investment.

    • OB1 Team Yakopov - F.S.T.N.F

      “Lose the team? Unlikely. Katz isn’t going anywhere having built a $20 million dollar house in Edmonton. There is abolutely NOBODY who can buy this place unlike in Calgary.”

      HAHAHAHAHAHAHAHAHAHAHA
      KATZ is a billionaire….

    • Deep Oil

      That $20 million dollar home has a $24 million dollar mortgage with an alleged starting point at $28 million – see Edmonton Journal.

      http://communities.canada.com/EDMONTONJOURNAL/print.aspx?postid=168570
      _______________________________________________

      What is wrong with an 80 – 20 P3, with RX Boy borrowing 80% instead of trial ballooning and getting everyone on board for $100 million for the arena, then short changing the public due to bankers not lending on the depreciating arena, but agree that smoke and mirrors can be used on the DEVELOPMENT.

      Finally the Canadian Taxpayer Federation read Gregor’s blog on LaForge and his quotes of all the arena districts that Edmontonian’s travel to LA LIVE, Chicago…. note PATTY, these are privately funded sites. Just like Columbus and Staples Centre with less than 15% from the government…… NATION read ballparks.com and you might understand the word HOODWINK.

      Here is the statement by the Candian Taxpayer Federation…..

      Publicly funded Oilers arena ‘unusual’ | Edmonton | News …8 May 2010 … Edmonton would be the first Canadian NHL city in a quarter-century to use public dollars for a new arena if the city bends to pressure from …
      http://www.edmontonsun.com/news/edmonton/2010/05/…/13880531.html – Cached

  • Arby

    Am i wrong, or isn’t it Kevin Lowe’s job to sell this new arena idea?

    “Dad can i help build the fence?”

    “Sure Kevin my boy, just take this 2X4 and go way over there and pound this nail into it.”

  • This isn’t an arena, its an entertainment complex… The coliseum is one of the most used buildings in North America.

    This is more than just a place to play hockey.

    Concerts, rodeo, circus, religous conferences, lacrosse, indoor soccer, monster trucks, and 2 hockey teams.

    The last business tower built in Edmonton was about 20 years ago. The Epcor tower is a start and this complex will be something we can be proud of.

    Any smart businessman tries to conduct business on someone elses dollar. I have faith that a fair agreement between the city, Northlands and Katz will be found.

    Edmonton needs this and once its built most of us will be proud and happy to have it.

  • OB1 Team Yakopov - F.S.T.N.F

    This arguement happens in every town that tries to build an arena, stadium or what-have-you. Nothing new here. Let the people who want pot-holes filled and the roads plowed after every snowfall have their say. Eventually they will get tuckered out and we can finally get on with revitalizing our decrepit downtown with this arena project.

  • Ducey

    Yes, lets just shut this arena down because we don’t yet know all the details about the funding. Brilliant idea. It’s called negotiations. How about we see what the deal will be before we start screaming that we hate Katz and he should pay for everything himself. There are many ways that this arena could be funded: ticket tax, property tax on surrounding business, share of revenues. This is just posturing, like when Katz made about 10 different offers for the Oilers.

  • Puritania

    I’m almost ashamed the World Juniors are going to take place in hurtin’ old Rexall. I’m not sure which is worse, the old obsolete structure or the horrid area around it. There is a ton of history there and that is great, but I would rather transport the Gretzky statue (preferably in the back of a Dodge, in the rain, with people running after it, for too long of a time.) to a world class bulding.

    The World Juniors and events like it bring the host city onto the world stage. It would be nice if people got to see a gorgeous complex downtown instead of meth-heads jacking people at the coliseum LRT station.

  • Ball Buster

    As someone has already pointed out, the arena complex financing is a negotiation. We only see and hear what the two parties want the media to report on.

    I know we’re all bored with the lack of Oilers activity but let’s not jump all over the very limited info we have. The process has just started.

    Hopefully, we get something to chew on in July after the public hearings. By then though, we’ll be tearing apart whoever the Oilers picked first and contemplating UFA options.

  • Milli

    Edmonton needs this to happen for a few diferent reasons. But, mainly to re-vitalize the downtown core, the heart of any city. It always strikes me, when I come back to Etown, to spend my money to watch hockey, drink beer, eat and stay at some dirty hotel, how much the downtown needs to have some life put back into it. The new arena complex, if done properly, would do that, would create a ton of new development, create tax dollars, on and on. I do love the education debate, NDPers and Libs, always use the education or health care card, fight any debate with those winners!!!!

  • MrCondor

    There have been numerous successful examples of public money being used to improve the value of land for private investers. This arena would be a prime example of that. The city then generates income from new development and higher property taxes.

    This shouldn’t be considered a building for a last place NHL team – It’s a center for culture and business in a city core which currently doesn’t have a lot going for it. It’s an investment. There will be a return – this isn’t a sunk cost like increasing health care funding or repaving Whyte Ave.

    Initiating the project with $100 million from a private investor is something the city should be jumping at.

  • Milli

    Isn’t Northlands already getting a sweetheart deal? Didn’t Pocklington cite their unwillingness to play fair as his primary motivation for wanting to move the team? Darryl Katz is a smart man, and if he can see what the other guys got why wouldn’t he ask for something comparable?
    That said, city hall better make sure they don’t get shined here. If the deal is fair (ie: return + interest in a timely fashion) then a downtown arena could be a great thing. This city is frakkin cold! It makes a lot of sense to have a pedway connected entertainment complex pumping cashflow into our understated downtown.
    BTW healthcare and education are provincial portfolios, and would not see money ripped from their pockets if the city moves ahead with this (which would be covered under infrastructure). The capital tied up would delay Lrt expansion (which could be a good thing given the ineptitude shown in the western leg route) and may even prevent our out of control mayor from embarking on any further vanity projects (remember when he paid tens of thousands to commission a study on the feasibility of raising the river 20ft!?) or the spending of 90M (that’s roughly $1000 from each of us) to build more scrap heaps (AGA) or allowing the shaw conference centre to build down to the riverbank. A new arena could be the lesser of many evils, and has the potential to pad tax coffers before long (Northlands claims to contribute $340M in taxes annually).
    If deal is fair, the arena is there!

  • Deep Oil

    Wanye, I have trouble seeing your point here, have a winner, make the playoffs with no labor cost and make money, increase the value of the team. Lose on the ice, field, hardwood and take red to the bank, decreasing the value of the team.

    Is anyone worried about the Edmonton Oilers going ANYWHERE no matter who owns the team, when BETTMAN and friends sank $160 million plus losses to save face against the southern experiment. In my opinion, owning the EOHC is waste of money in terms of opportunity cost of capital.

    Prior to Katz bidding against himself, and raising the price to $200 million less liabilities, the EIG were to diminish it’s size and retire some shares at a aggregate
    value of $135 million. RX Boy Wonder’s ego got in the way of his mortgaged house, fractional owned jet, mortgaged company, and then mortgaged more to buy the team via CIT GROUP…… sorry no conspiracy here, just the plain old public facts, that you can find anywhere be the mayfair golf and country club or land titles.

    So the point of your article here WANYE is that the quickest way to become a millioniare is to be an alleged billionaire and buy a sports team.

    Seems the word STAMPEDE for the exits of owning a NHL team is the flavor of the week with the Islanders moving from Hempstead to Queens, Atlanta suing each other, St. Louis having shareholder dissent, Nashville tetering and Florida and Tampa selling for $80 – $110 million less land, less arena lease, and the beloved coyotes (I am a scottsdale resident and $9 per game season ticket holder) are the debacle in the desert.

    I kept reading your article looking for a point, didn’t find one.

  • The lucidity and overall interestingness of these Deep Oil comments far outweigh the potential legal liability for keeping them posted.

    Interesting on all 3 points Deep Oil. We have both had our say.

    Certainly you must agree that Edmonton could use a kickstart for Downtown Development though right?

    On that we can agree…

    • I really didn’t realize that using other people’s facts via links were a legal liability, noting that the Katz group probably disapproves of the public finding out the debt – equity ratio of the company, and it’s backers.

      Why does Edmonton need a kickstart for a downtown development. Sometimes Wanye, you can do more damage reacting rather than planning. The Katz group has no plan, except a concept with no funding model, except their corporate welfare hand out, while good old Patty LaForge keeps touting entertainment districts that were built with private funds.

      LaForge, better come up with a better strategy, but comparing our potential downtown district to jobing.com and westgate seems to defeat the purpose right……

      A billion dollar development generates $14 million in tax revenue, on $400 million dollars, the interest cost on the rink alone
      is $15 to $20 million with no property tax from the rink.

      This office tower proposal will end up like Westgate in Glendale, empty and a white elephant based on the real demand in Edmonton for office space.

      Based on Bettmans fight for the Coyotes, this team is in no threat of leaving, no matter where they play. So if you have an owner spending to the cap in this market, and wanting a free arena, when the Canadian tax landscape says GO TO HELL, then by all means, try to fool the people that there is a crisis, when obviously there is not.

      Wanye, you have used a term that is a corporate socialist’s dream, what do you mean by kickstarting the downtown development, when was the last time you had a problem getting a beer, a summer patio meal, or difficulty attendng a movie downtown….. the cost is too high for the real benefactor here, private business.

      80 – 20 seems to the norm, and your proposal “kickstart” is fiscally irresponsible
      as it has no numbers, vision, plan, or accountability.

      Oh well, you were probably in favor of the $100 million dollar Art Gallery that will benefit all of Albertan’s right ? Private money my donkey, seems the do gooders started the project but failed to finish it, with Ledcor having cost overuns, fact.

  • Deep Oil

    Another reason the Katz Group has it’s hand out to the city, while the province and feds have back away from this political pariah.

    See the GREED story below……. turn it upside down and you have the city of Edmonton giving the marjority of the money for the rink as PSL’s don’t always work.

    Personal Seat Licenses Fail To Sell Out
    http://www.nydailynews.com/sports/football/jets/2010/05/14/2010-05-14_woodys_psl_logic_tough_sell.html

    The article scolds Woody Johnson, bascially stating if you don’t have the “there there” to build your own stadium, go fish.

    Greed via public purse or PSL is the same evil.

    If you remove the EOHC from Northlands, what is wrong with the facility (excluding the poor management and inept board), this Katz group which appears to be a secret of who is really behind the Katz group (LOLOLOLOLOL) wants their OWN rink, so let them pay, stand on your own, I am getting tired of this dog and pony show that radio hosts are pandering to without the real questions, noting that most are starstruck to have LaForge on their show, or in fact LaForge owns the radio time on the show, as per Oilers Lunch.

    Enough said, either way build it and they will come, but on your dollar, better yet, why not have some of Katz’ east coast pharaceutical buddies invest some of their monies here as a donation, since they are taking a higher percentage on generics than in Ontario and Quebec, it is just our provincial money being returned to the taxpayer, much like CNRL, Suncor, Syncrude, building rinks in their communities, as they have taken the resources from Albertan’s, it is called giving back, to which Katz’ strategic alliance business partners in NJ have failed to do.

    Yes, the conspiracy continues…… but what is the difference in big business when an International Oil Company donates back to Albertan’s and an American Drug Company abuses the public drug system, overcharging the public.

    Ontario and Quebec have put a stop to this.

  • Deep Oil

    “ready to contribute $100 million dollars on top of having purchased the team for an inflated value and having subsidized the team through what must have been a non-profitable last few seasons is a rarity ”

    Seriously…….can you count? because “a non-profitable last few seasons” REALLY????? basic math is all it takes to figure out the Oilers MADE money this past year………….. unless you borrow $200 million at 8 or 10% to buy the team.

    Off ticket revenue alone……. that is only people walking in the door the Oilers have a gate of $70,000,000.00. They have a maximum NHL salary cap of $56,000,000,00. So if the remaining 26 contracts average at 100,000.00 per player, and they do NOT!, the total player payroll expense is $59 million.

    They pay Northlands nothing or the better part of nothing for rent.

    So there additional Massive expenses are?? Travel and Management

    Course when you add into team revenue: the Oilers share of the HNIC contract, TSN hockey, Rogers Sportsnet West, Ched radio revenue, board rentals, Merchandise that adds an another $25 million to revenue so that your additional expenses have to exceed 35 million to get to the team to a loss

    I suspect that the Oilers make a net profit ABSENT financing costs of $10 to 15 million dollars

    Now Katz is NOT contributing $100 million towards Edmonton’s arena…… he is asking GOVERNMENT (City, Province, Feds)—– ie you, me and all other taxpayers, to GIVE him $350,000,000.00 to him so he can have an arena GIVEN to him.

    I’d like to buy a Porsche and I can swing it if you give me 78% of the purchase price I can afford it