[Newsbot]

Title: Oilers threaten move to Seattle as arena flap escalates
Category: Business
Posted By: Regina
Date: 2012-09-25 06:00:47
Canadian

[QBall]

This is just sabre rattling. While I heard Seattle is building a new stadium for basketball that could be dual used for hockey I don't see the market for hockey in seattle. At least not the same size as Edmonton. Not to mention if this were to happen I don't think Bettman would be safe to set foot in Canada.

[Regina]

Bettman doesn't get to vote on the moving of team. That honour is for the owners only, which he is not one of.

[raydan]

I know that some like to put the blame for everything bad in hockey on Bettman, but the problem here has nothing to do with him. This is a failure in negotiations between the city and the owners, first of all.

$1:

“The Katz Group has been listening to proposals from a number of potential NHL markets for some time,” the statement read.

That deal was thrown into doubt earlier this month when the city councilors were told at a closed door meeting that Katz wanted millions of dollars in new concessions from taxpayers for the proposed 18,400-seat arena.

That prompted Mandel to ask Katz to appear before council in a public session to explain the new demands, but the Oilers’ owner declined.

Looks like Katz is the problem here, but as a business man, he's looking to make as much money as he can, while boosting up the future value of the team.

[OnTheIce]

Katz is the problem here. Having seen the internal workings of his company and the bush-league tactics, this isn't too far off.

However this project isn't just an arena so he does have a case for some public involvement in the project.

[saturn_656]

Isn't Seattle Canucks territory?

[DrCaleb]

When I first heard this I wondered, "When did Pocklington get back in town?"

Same BS he used to pull. I think he learnt it from Quebec.

I'll miss the Oilers. Only a little.

[sandorski]

My Bro wouldn't mind a Seattle team.

[bootlegga]

Katz isn't the problem - the poor economy is. If the economy was booming, this deal would have been done ages ago and construction started already. We used public financing to pay for Rexall Place/Northlands Coliseum decades ago and that wasn't as big an issue as it is now.

Katz is a passionate Edmontonian and really wants to keep the team here, but no businessman worth his salt is going to keep losing millions of dollars year over year.
Businesses like that either go bankrupt or go somewhere they can turn a profit.

Costs in the NHL have escalated massively over the past decade and either Edmontonians need to accept that as the cost of the Oilers staying here or deal with their inevitable move elsewhere.

Most people wouldn't be surprised if any other business packed up and left Edmonton because it wasn't profitable, but because this is a sports team, somehow it's different. It's not. If he can't make at least some profit on his investment, he'll sell the team or move somewhere else to get that return.

[Unsound]

I'd miss the OIlers a lot. That said, I'd rather see them go than succumb to blackmail. The arena thing will be sorted out eventually, and when it is I'm sure someone else will be happy to move a franchise to Edmonton.

[reidjr]

Unsound Unsound:

I'd miss the OIlers a lot. That said, I'd rather see them go than succumb to blackmail. The arena thing will be sorted out eventually, and when it is I'm sure someone else will be happy to move a franchise to Edmonton.

I don't know if the Oilers move it will be some time even before a new rink is talked about thats my guess.

[OnTheIce]

bootlegga bootlegga:

Katz is a passionate Edmontonian and really wants to keep the team here, but no businessman worth his salt is going to keep losing millions of dollars year over year.
Businesses like that either go bankrupt or go somewhere they can turn a profit.

Costs in the NHL have escalated massively over the past decade and either Edmontonians need to accept that as the cost of the Oilers staying here or deal with their inevitable move elsewhere.

The Oilers aren't losing money.

They average 10.5 million per year in operating profit. $9.4 million in 2008-09, $11.8 million in 2007-08, $9.9 million in 2006-07, and $10.7 million in 2005-06.

The Oilers ranked 6th in the NHL for gate revenue despite having a small capacity compared to the other rinks.

Katz has asked for 475 million to build the rink and 6 million per year in subsidy from Edmonton.

In turn, he's offered:

-5.5 Million for 35 years=192 Million
-10 Million/year to cover all operating costs
-Keep all profits for 11 months of the year.

I think it's asking for the 6 million subsidy after asking for 475 million that's a real piss-off.

[DrCaleb]

bootlegga bootlegga:

Most people wouldn't be surprised if any other business packed up and left Edmonton because it wasn't profitable, but because this is a sports team, somehow it's different. It's not. If he can't make at least some profit on his investment, he'll sell the team or move somewhere else to get that return.

Doesn't stop the Indy from leaving town, despite the city not getting the same $20 million in federal and provincial funding that the Montreal F1 gets.

IIRC, that is the same number as what the City said it cost to host the Indy over 5 years. And more of the world cares about auto racing than they do hockey.

[Dragon-Dancer]

Let Kats take his team and his arena ripoff and stuff it. He's the one who wants too much for too little investment.

[reidjr]

Dragon-Dancer Dragon-Dancer:

Let Kats take his team and his arena ripoff and stuff it. He's the one who wants too much for too little investment.

So if that means not many concerts or events no more Wheat Kings you would be fine with that?