Tag: new arena deal

2011 NHL Entry Draft - Round One

Katz gives a little; will an arena deal get done in Edmonton?

The good news is that the Edmonton Oilers have an owner. With teams like the Coyotes, Stars, and Blues undergoing ownership issues over the last few months (years), having an owner isn’t something to be taken for granted anymore. Now having a place to play—that’s a different story. For anyone following the arena negotiations in Edmonton, owner Daryl Katz wants to build a new arena downtown to house the Edmonton Oilers. Not only does he want a new downtown arena, he wants the taxpayers to help fund the deal, and he wanted a non-compete clause with the operator of Rexall Place that would send concerts to the new arena as well.

No word if he wants the City of Edmonton to throw in a pony while they’re at it.

After meeting with Edmonton Mayor Stephen Mandel and Gary Bettman in New York this week, it sounds like Katz is willing to limit his demands. He’s publically stated that he’ll take the non-compete clause off the table as he tries to work a deal before October 31. You see, he has until Halloween before he loses the downtown parcel of land that has been reserved for the potential arena. Without the downtown land, there is no downtown arena.

Obviously in negotiations, people don’t make concessions without getting something back in return. From SportsNet:

“In return for taking the clause off the table, the city has agreed to a new ticket tax at Rexall equal to the one proposed for the new arena, said [City manager Simon] Farbrother.

“There would be a level playing field,” he said, adding the city would also stop subsidizing Rexall after the new arena is built.

The debate over a new home for the Oilers to replace Rexall Place, the second-oldest rink the league, has been going for four years.

Although close to a deal, the project’s remaining stumbling block is money. A hefty $100 million is still needed to fund the $450-million arena.

The Katz Group earlier agreed to put up $100 million and tax ticket holders for another $125 million. The city would pony up $125 million.”

As an outsider, it would be great to see the Oilers get a new arena to go with their new team. Rexall Place is the second oldest arena in the league and could definitely use an upgrade. Can you imagine the Oilers taking the next step with all of their young talent—completing in the playoffs with a new sold-out new building in the middle of Edmonton? It sounds like a great idea.

Of course, any time taxpayer funds are being discussed, it opens a political can of worms that has little to do with hockey. Just ask people in Long Island about votes and referendums about new arenas. For the average voter, it comes down to money. More money in the form of taxes means less money in people’s pockets.

The two sides have a little over two weeks to figure this thing out. We’ll keep you updated as the two sides continue to negotiate.

Oilers ownership and City of Edmonton agree on new arena deal

Daryl Katz, Gary Bettman

While some teams are struggling over whether or not they’ll be able to call their current home cities as their own, the Edmonton Oilers are securing their future in the Albertan oil town.

Oilers owner Daryl Katz and Edmonton mayor Stephen Mandel have been working together for some time now to trying to get a deal cut to build a new arena to replace Rexall Place in Edmonton. The Oilers have called Rexall Place home since they joined the old WHA back in 1974 and is the second oldest arena in the NHL, only Nassau Coliseum in Long Island is older.

Last night, Mandel and Katz announced that they’ve reached an agreement on a deal to finally build the new facility Katz and his ownership group have been hoping for. The details are juicy ones for other teams hoping to construct new buildings in the future.

The deal, approved by an 8-5 council vote following an hours-long meeting behind closed doors, closely follows a 17-part motion passed in April that laid out what the city wants to see happen.

The maximum construction cost will be $450 million. That will be covered by $100 million cash from Oilers owner Daryl Katz, $125 million from a ticket fee and $125 million from tax on surrounding development and other city funds.

The two sides will jointly work on a design.

The provincial and federal governments will be asked to put in the remaining $100 million.

Everyone’s chipping in with a piece here but it appears that fans and citizens will be helping to foot the bill in one form or another through ticket fees and taxes. While it’s a great deal for Katz and his owners and likely for downtown Edmonton development as the building will be located downtown, it always feels awkward to have so much money for deals like this come out of the citizens pockets.

At the very least, the City of Edmonton will own the facility while Katz and his people will run it and the deal worked out to build the arena locks the team into staying there for the next 35 years. Here’s to hoping things with the Canadian dollar don’t get screwy again or else this deal could turn sour.

Still, it’s a good thing for the Oilers to get themselves into a nice, new building worthy of their legacy through the 1980s and 1990s. Let’s just hope this doesn’t turn into something the fans and people of Edmonton turn around and regret in a major way in the future.