Edmonton Oilers arena: City Council votes to cease negotiations with team owners

Edmonton Oilers arena: Daryl Katz 'hopeful' despite Council move

As the Oilers continue to push for a new arena that would secure the team's future in Edmonton, their owner, Daryl Katz, remains hopeful despite City Council deciding to break off negotiations for a new downtown venue. The two sides had been working diligently to work out an agreement that would work for both the franchise and the city in terms of revenue and logistics, but they have hit quite a few snags thus far.

Katz released a statement on City Council's decision to break off negotiations.

"We are concerned about the implications of the motion passed yesterday by City Council. We do not yet have a view on what comes next, but we remain hopeful that there is a solution that achieves the mutual goal of securing the Oilers' long-term sustainability in Edmonton."

It is unclear what the next step is for Katz and the Oilers. There have been talks of relocation to Seattle, although there is nothing concrete as of yet. There is also a chance the team remains in Edmonton, but a new arena would likely have to be built in order for that to happen.

Edmonton Oilers arena: City ceases negotiations with team owner Katz

The Edmonton City Council has unanimously voted to cease negotiations with Oilers owner Daryl Katz regarding a new downtown arena.

Edmonton Oilers relocation: Wayne Gretzky doesn't think there's a chance

Wayne Gretzky wants the Edmonton Oilers to remain where they are.

City of Edmonton holds leverage in arena talks with Oilers

Edmonton Oilers officials took a trip to Seattle on Monday and are threatening relocation if the city of Edmonton doesn't agree to a new arena deal, but while the Seattle visit drew headlines, it may be the city who holds all of the leverage.

While the ownership group is trying to use the threat of relocation to pressure the city into a favorable new arena deal, the fact is, even without a new arena, Oilers officials likely won't be able to find a better deal than the one they currently have. Ryan Batty of The Copper & Blue detailed why it's the city and not the ownership group holding all the leverage.

The threat to move to Seattle, or any other city looking for an NHL for that matter, is an empty threat. Under the terms of the agreement that was reached between the Katz Group and the City last year Katz pays $0 towards the arena construction costs. That's not a typo, he pays nothing. His investment is a loan taken out by the City which he pays back. Katz also gets revenue from the building 48 weeks out of the year not just on hockey nights as is currently the case at Rexall. And this ignores the fact that he's already making money hand over fist in a small and outdated arena. There is no other way to put it: Katz is sitting on a gold mine in Edmonton right now.

In Seattle, or another city, the ownership group would have to pay rent and would only collect revenue on the nights when the team plays a home game. That's in addition to a likely relocation fee required to move the team. Money is often the key in these situations and even in a smaller market, it appears Edmonton can offer the most.

Oilers blog: City of Edmonton shouldn't give in to Daryl Katz's bluff

News of Daryl Katz, Patrick LaForge, Kevin Lowe and others from the Edmonton Oilers leadership group visting Seattle for meetings has caused some cause of concern for Edmonton Oilers fans.

The Oilers' ownership is looking for an arena deal and they have less than 24 months remaining on their lease at Rexall Place.

In a statement, the Katz Group announced they are "listening to proposals from a number of potential NHL markets for some time," and that "should come as no surprise."

With Seattle threatening to take the Oilers from Edmonton, Derek Zona of SB Nation's Edmonton Oilers blog, The Copper & Blue, opines the city needs to avoid giving into Katz's demands.

It comes down to this - only the most frightened people will believe this bluff. Only the biggest shrinking violets in Edmonton will believe that giving in is the best strategy in these negotiations. Only the naive and very young would hand over more (more than the $400 million already guaranteed) to Daryl Katz.

Talk more about the Edmonton rumors with Oiler fans at The Copper & Blue.

Edmonton Oilers release statement on Seattle visit

Edmonton Oilers officials are in Seattle for meetings on Monday, a prepared statement from the team said. They say they are exploring their options just 24 months before the expiration of the teams' lease at Rexall Place.

The Oilers have been in negotiations with the city of Edmonton for some time now over the building of a new downtown arena. Owner Daryl Katz has hinted before that the team might not remain in Edmonton if a new arena isn't built, and did so once again in the released statement attributed to Bob Black, Executive Vice President of the Katz Group.

"I can confirm that Daryl Katz, Patrick LaForge, Kevin Lowe and others from the Oilers leadership group are in Seattle for meetings and to attend the Seahawks game.

We remain committed to working with City Administration to achieve a deal commensurate with what Winnipeg and Pittsburgh have done to sustain the NHL in those small markets. If we can achieve such a deal, the Oilers will remain in Edmonton and we can get on with the important work of developing the new arena and investing in the continued revitalization of Edmonton's downtown core.

Nonetheless, and as the City of Edmonton is aware, the Katz Group has been listening to proposals from a number of potential NHL markets for some time. After more than four years of trying to secure an arena deal and with less than 24 months remaining on the Oilers' lease at Rexall Place, this is only prudent and should come as no surprise.

We are extremely grateful to Oilers' fans for their patience and loyalty as we work through this process towards what we sincerely hope will be a long and successful future for the Oilers in Edmonton. We have no further comment on the status of our discussions with other markets at this time."

Seattle meanwhile is hot on the heels of a new agreement between investor Chris Hansen and the city council, to build a new arena to lure an NBA team back to Seattle. Hansen has often talked of the possibility of the arena housing an NHL team as well, but it isn't something the investor is interested in owning.

Katz, Patrick La Forge and Kevin Lowe were all seen taking a tour of Key Arena and are later attending Monday's game between the Green Bay Packers and the Seattle Seahawks. Key Arena has been used to house minor league hockey seasons before, and also remains a possible final destination in the more immediate future.

Talk more about the Edmonton rumors with Oiler fans at The Copper & Blue.

Edmonton Oilers owner, president reportedly take tour of Seattle's Key Arena

Chris Hansen might have a potential suitor for NHL relocation in the Edmonton Oilers. The Oilers appear to be dissatisfied with current management. Our Edmonton SB Nation site The Copper & Blue has more on the situation, which seems to be demanding that the city stand up for a new downtown arena or management will consider relocation once the current lease expires.

Coupled with the stories that are starting to trickle out of Seattle on Monday, naturally some rumors are popping up today about the Oilers potentially flirting with Seattle. According to Dave Mahler at KJR Radio, the team president and owner of the Oilers were in the city on Monday touring Key Arena. Additionally, former Oiler legend Wayne Gretzky is apparently in Seattle and will be visiting with Hansen sometime tonight.

An arena will probably take a few years to develop, but the Oilers are still a few years away from considering relocation. At the very least, it's looking like there is genuine interest in placing an NHL team in Seattle by at least one ownership group.

Talk more about the Edmonton rumors with Oiler fans at The Copper & Blue.