: News Article:
New Arena deal agreed to by city and Katz group:mod warning #616
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04-12-2013, 04:45 PM
Join Date: Apr 2007
Originally Posted by
Just because of the Phoenix example I wouldn't say a lease is worth "nothing". In order to break the lease Gerry Moyes had to throw the team into bankruptcy. In bankruptcy the owner of the company loses most to all of their equity.
Katz signing a lease is only worthless if you think Katz is likely to simply wash his hands of the Oilers and walk away.
Which he or any other owner can easily do unless there are very punitive punishments for doing so. None of which we have heard about. They get all the benefits of the new rink and have zero in the way of real value holding them to that building if things go sour at all. The Oilers should own the building if they are going to reap all the rewards. If not they should lease the building not take on the risk and not reap all the benefits.
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