HFBoards

Go Back   HFBoards > NHL Western Conference > Pacific Division > Edmonton Oilers
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
Notices

Oilers & Northlands Reach New 10-Year Lease Agreement

Closed Thread
 
Thread Tools
Old
04-05-2004, 06:23 PM
  #1
MrMackey
Registered User
 
MrMackey's Avatar
 
Join Date: Aug 2003
Location: cgy
Country: Canada
Posts: 3,061
vCash: 500
Oilers & Northlands Reach New 10-Year Lease Agreement

I don't know if this has been mentioned already on the boards, but thought the timing of this was particularly interesting given the new upcoming CBA & Laforge's recent comments about a new facility.

Obviously if the Oilers were to get a new arena, it would take at least 5-10 years to get together anyway, but perhaps Laforge was just saying that as a negotiating tactic in the first place?

Also, I didn't read anything about this agreement being contingent on a positive result from the CBA. I wonder... does this mean that the team plans to stay another 10 years regardless of the result? Could it mean that they are so certain that the CBA negotiations will be positive, that they saw this as a low-risk agreement? Perhaps there's an out in the agreement that allows the team to relocate to another city?

Anyway... its interesting and though it might be worth at least a little discussion.


Quote:
Originally Posted by Oilers News Release
Oilers & Northlands Reach New 10-Year Lease Agreement

The Edmonton Oilers Hockey Club has reached a new lease agreement with Northlands Park that will see their current arrangement extended for the term of an additional ten years. The Oilers already share a strong working relationship with Northlands Park, and the new agreement serves to renew Northland’s commitment to provide quality service and facilities for Oilers fans.

“This new agreement is valuable in that it provides the Edmonton Oilers with a platform to operate off for the foreseeable future,” said Patrick LaForge, President & CEO of the Edmonton Oilers. “For season ticket holders, it also means that Rexall Place, with all the rich heritage and history it represents, will continue to be the home of the Edmonton Oilers for years to come.”

Cal Nichols, the Chairman of the Edmonton Investors Group, reiterates LaForge’s statement, “Having an agreement in place with Northlands allows us the ability to plan for the future. We can now move forward, and continue to map out the future of the Edmonton Oilers, with Northland Park as a strong supporter.”

Eric Young, President of Northlands Park, adds, “The Edmonton Oilers keep Edmonton on the international sports map. We are very proud that Northlands Park is home base for the Edmonton Oilers. This agreement ensures another decade of world-class hockey in northern Alberta. The Edmonton Investors Group and Northlands Park are community leaders, and this agreement demonstrates what happens when they work together - they make great things happen for Edmonton."

MrMackey is offline  
Old
04-05-2004, 07:39 PM
  #2
Oilhitch
Registered User
 
Join Date: Sep 2003
Location: Edmonton
Posts: 755
vCash: 500
When was the old lease up?

Oilhitch is offline  
Old
04-05-2004, 07:40 PM
  #3
rabi_sultan
Registered User
 
Join Date: Sep 2002
Location: London, England
Country: United Kingdom
Posts: 3,782
vCash: 500
Send a message via ICQ to rabi_sultan Send a message via AIM to rabi_sultan Send a message via MSN to rabi_sultan Send a message via Yahoo to rabi_sultan
could they be considering to branch out to the WHA instead if the NHL doesn't get its act sorted out

rabi_sultan is offline  
Old
04-05-2004, 07:40 PM
  #4
rabi_sultan
Registered User
 
Join Date: Sep 2002
Location: London, England
Country: United Kingdom
Posts: 3,782
vCash: 500
Send a message via ICQ to rabi_sultan Send a message via AIM to rabi_sultan Send a message via MSN to rabi_sultan Send a message via Yahoo to rabi_sultan
Quote:
Originally Posted by Oilhitch
When was the old lease up?
i believe it was up this year oilhitch, along with the arena name.

rabi_sultan is offline  
Old
04-05-2004, 07:41 PM
  #5
momentai
Registered User
 
Join Date: Jun 2002
Posts: 5,352
vCash: 500
Quote:
Originally Posted by rabi_sultan
could they be considering to branch out to the WHA instead if the NHL doesn't get its act sorted out
That could be one option... or maybe another could be the WHL team that was being rumored about earlier this season.

momentai is offline  
Old
04-05-2004, 07:43 PM
  #6
Oilhitch
Registered User
 
Join Date: Sep 2003
Location: Edmonton
Posts: 755
vCash: 500
Quote:
Originally Posted by rabi_sultan
i believe it was up this year oilhitch, along with the arena name.
I thought so, thanks rabi.

Oilhitch is offline  
Old
04-05-2004, 07:44 PM
  #7
Oilhitch
Registered User
 
Join Date: Sep 2003
Location: Edmonton
Posts: 755
vCash: 500
Quote:
Originally Posted by momentai
That could be one option... or maybe another could be the WHL team that was being rumored about earlier this season.
I bet more than anything you are correct. I hope this is a sign of things to come for a WHL team.

Oilhitch is offline  
Old
04-05-2004, 07:54 PM
  #8
thome_26
HFBoards Sponsor
 
Join Date: Aug 2003
Location: Edmonton
Country: Canada
Posts: 8,860
vCash: 500
Send a message via ICQ to thome_26
Let's not forget they made money this year boys.

I firmly believe that you dont' need a 45 million pay roll to win a cup - and with a few minor adjustments, our continued support, and some kind of security for the currency changes then the Oilers don't need to consider the CBA a win or die situation.

Oh, and also - don't forget that these owners aren't being stupid with money -the value of franchises constantly increases which in turn makes it a profitable venture even if the club can only break even every year.

thome_26 is online now  
Old
04-05-2004, 07:59 PM
  #9
Oilhitch
Registered User
 
Join Date: Sep 2003
Location: Edmonton
Posts: 755
vCash: 500
Quote:
Originally Posted by thome_26
Let's not forget they made money this year boys.
Yes the team made money this year. But I do not think that it stays with the team. Did it not go back to the owners. They are after all an Investors Group?

Oilhitch is offline  
Old
04-05-2004, 08:05 PM
  #10
thome_26
HFBoards Sponsor
 
Join Date: Aug 2003
Location: Edmonton
Country: Canada
Posts: 8,860
vCash: 500
Send a message via ICQ to thome_26
Quote:
Originally Posted by Oilhitch
Yes the team made money this year. But I do not think that it stays with the team. Did it not go back to the owners. They are after all an Investors Group?
What are you talking about "stay with the team"? The only way it would "stay with the team" is to increase payroll or spend money on improving certain things. It's not like the Oilers would normally (they do currently because of the CBA situation for security) have a savings account. I'm not trying to imply the Oilers have lots of money now - but they are far from being in poor financial waters. The Oilers are spending money on improving Rexall place's concession area I believe- so in a way that is staying with the team. But for every team in the league, any time they are in the green, then that money goes to the owners - it's just a matter of how much the owners want to take of it or to spend on things such as facility upgrades, organizational payrolls, etc.

thome_26 is online now  
Old
04-05-2004, 08:09 PM
  #11
Oilhitch
Registered User
 
Join Date: Sep 2003
Location: Edmonton
Posts: 755
vCash: 500
Quote:
Originally Posted by thome_26
What are you talking about "stay with the team"? The only way it would "stay with the team" is to increase payroll or spend money on improving certain things. It's not like the Oilers would normally (they do currently because of the CBA situation for security) have a savings account. I'm not trying to imply the Oilers have lots of money now - but they are far from being in poor financial waters. The Oilers are spending money on improving Rexall place's concession area I believe- so in a way that is staying with the team. But for every team in the league, any time they are in the green, then that money goes to the owners - it's just a matter of how much the owners want to take of it or to spend on things such as facility upgrades, organizational payrolls, etc.
I do think that the Oilers are in better financial shape than they have ever been. That means that the owners should be willing to spend more on payroll, ect.

Oilhitch is offline  
Old
04-05-2004, 08:11 PM
  #12
Narnia
HFBoards Sponsor
 
Narnia's Avatar
 
Join Date: Mar 2002
Location: Surrey, BC
Country: Canada
Posts: 14,394
vCash: 500
Send a message via MSN to Narnia
Don't they also need a new ice plant or machine as well?

__________________
"He just ate up Robyn Regehr for dinner, a spectacular play by Hemsky, and Robyn Regehr has got doo doo all over his face" - Rod Phillips call on Hemsky's goal vs the Flames
Narnia is offline  
Old
04-05-2004, 08:15 PM
  #13
thome_26
HFBoards Sponsor
 
Join Date: Aug 2003
Location: Edmonton
Country: Canada
Posts: 8,860
vCash: 500
Send a message via ICQ to thome_26
Quote:
Originally Posted by Hemsky83
Don't they also need a new ice plant or machine as well?
Ya, I'm pretty sure that was said about the ice plant. But the Owners are spending more - although they didn't increase salary and really, with how they've worked it out, could end up going in to next year with the same pay roll (barring plus or minus a couple million) while adding a fairly high calibre UFA. They are spending money on upgrades for Rexall too - so they are spending more money - and the Canadian dollar is to thank for all of this! (and if those goofy easterners elect some conservatives it'll go up even more and the Oilers will be even better of!)

thome_26 is online now  
Old
04-05-2004, 08:57 PM
  #14
momentai
Registered User
 
Join Date: Jun 2002
Posts: 5,352
vCash: 500
The owners and the NHL team may have broken even this year or even made a profit... but I don't think that hardly recupes the years of losses this team has had endure over the years and the cash call that the owners had to produce in order to get the team to the CBA agreement deadline.

Let's be realistic here. I don't think, if the financial climate of the NHL doesn't change, that the owners are going to be conducive to spending money and owning a team in a climate that isn't stable. That means the team is gone.

You don't need a 45 million dollar team... but with the way salaries have continued to increase along with the average salary... it doesn't look a trend that is going to provide the Oilers with a healthy atmosphere. The CBA must change because the fact that the owners are making money today (however large or small) isn't going to convince them to stay IMO.

momentai is offline  
Old
04-05-2004, 09:02 PM
  #15
Oilers Hockey
 
Join Date: Aug 2003
Location: Heartland of Hockey
Posts: 1,531
vCash: 500
How much did they make this year? Its amzing that they made some $$ even with no playoffs.

Oilers Hockey is offline  
Old
04-06-2004, 12:15 AM
  #16
Digger12
Registered User
 
Digger12's Avatar
 
Join Date: Feb 2002
Location: Defending the border
Posts: 14,566
vCash: 500
What happens if a couple of years down the road the Canadian dollar goes back to its sub 70 cent levels that it used to be at? Suddenly that meager profit turns into a big loss.

The owners need a CBA and its promised 'cost certainty' so that we don't have to live and die with the exchange rate and one time only events (Heritage Classic) in order for this team to stay out of the red.

Any other outcome and this team's dancing on razor blades.

Digger12 is offline  
Old
04-06-2004, 06:20 AM
  #17
Yanner39
Registered User
 
Yanner39's Avatar
 
Join Date: Oct 2002
Location: Ottawa ON
Country: Canada
Posts: 5,334
vCash: 500
Quote:
Originally Posted by Digger12
What happens if a couple of years down the road the Canadian dollar goes back to its sub 70 cent levels that it used to be at? Suddenly that meager profit turns into a big loss.

The owners need a CBA and its promised 'cost certainty' so that we don't have to live and die with the exchange rate and one time only events (Heritage Classic) in order for this team to stay out of the red.

Any other outcome and this team's dancing on razor blades.
Bingo. I don't put a whole lot of stock in a team that "makes money" if the majority of the profit is due to foreign currency fluctuations. If you tell me the team is making money by showing operational profits, then fine. As of now, the Owners can probably look forward to more cash calls if the new CBA doesn't work.

Yanner39 is offline  
Old
04-06-2004, 11:09 AM
  #18
barto
Registered User
 
Join Date: May 2002
Location: Edmonton
Posts: 2,465
vCash: 500
You could look at it a couple of ways - the new CBA will likely be *some* kind of improvement, if not the 'big win' that the owners seem to want. Some kind of drag on salaries will help the Oilers, as will some kind of revenue sharing. That might be enough to keep them competitive and in Edmonton for a while.

I also thought the timing of the announcement of the new lease agreement was a little odd...there HAS to be an 'out' if the new CBA doesn't change *enough* for the EIG's liking. And who's actually paying for the upgrades to Rexall? EIG or Northlands?

And another question that came up for me pretty quickly was about the deal the City has with Northlands...has that been extended as well? The idea back when Pockington sold the team to the Edm. Investors' Group (EIG) was that the Oilers would pay almost nothing to Northlands for leasing & playing in the Coliseum, but Northlands would get its money from the City - $3.5M per year is the figure I remember. What happened to that? I think it was due to expire around the same time as the Oilers' lease on the Coliseum (Rexall).

Interesting stuff.

And the WHL thing makes a lot of sense, too - Laforge has said on the radio not long ago that they'll almost certainly be getting a WHL franchise. Maybe not today, but within a year, maybe two, is what I remember hearing him say. Could depend on which existing franchises are for sale or needing a move.

Bart

barto is offline  
Old
04-06-2004, 12:05 PM
  #19
Digger12
Registered User
 
Digger12's Avatar
 
Join Date: Feb 2002
Location: Defending the border
Posts: 14,566
vCash: 500
Quote:
Originally Posted by barto
I also thought the timing of the announcement of the new lease agreement was a little odd...there HAS to be an 'out' if the new CBA doesn't change *enough* for the EIG's liking.
Same here...on one hand we have Cal Nichols' warnings of impending doom if the CBA doesn't work to their favour, yet on the other hand they're signing 10 year extensions?

Perhaps they've seen signs behind the scenes that indicate to them that there WILL be a new CBA in place by next September, one that they'll be willing to live with?

Digger12 is offline  
Old
04-06-2004, 12:32 PM
  #20
HarryStrand
Registered User
 
Join Date: Jul 2003
Location: Edmonton
Posts: 85
vCash: 500
Patrick Laforge is already saying that the Oilers operated about $1,000,000 in the black for this season, pending final audits and finacial statements which will be available to the investors in August (they can tell or not tell us whatever they choose, since the Oilers are a private business, so the numbers released could be of questionable accuracy). I would think that the Oilers are being quite conservative in what they disclose about their financials, which is fine by me.

The Oilers seem to be doing a tremendous job of living within their means, and the franchise has done everything in its power to stabilize the things it can control. Barring spiralling interest rates, a slump in the Canadian dollar, or other sharp economic downturns, it looks like the team is pretty stable.

The lease is for about $1 million a year, which is very reasonable by any business standards. That amount wouldn't rent more than half a floor of office space in a typical downtown office building, or more than a medium sized amount of retail space in a major city mall.

It would be interesting to know what kind of lease-breaking arrangements are in place, since it was the clause that bound the team to Edmonton until 2004 that provided enough breathing room to save the team six years ago. Suffice to say, the good news is that there is very little threat that a rich American will be wanting to relocate the franchise anytime soon.

Northlands seems to be getting ready for some expansion right now, and I would hope that an arena is factored into the plans towards the end of this lease. As someone said, the ice plant is pretty much shot (sure noticing more funny bounces, more skates losing edges, etc. every year), and there are other upgrades that I'm sure the City and Northlands will have to look into. The building will be 40 years old by the time this lease runs out, and most of the arenas and stadiums that were built in the 1970's have already been imploded.

HarryStrand is offline  
Old
04-07-2004, 04:50 PM
  #21
barto
Registered User
 
Join Date: May 2002
Location: Edmonton
Posts: 2,465
vCash: 500
Good call, Harry - I only saw the $1M/yr thing after posting. Still curious to know how the City/Northlands deal works now with this new lease agreement...does the City now pay Northlands only $2.5M/yr? I'm sure we'd have heard from Northlands if they went from $3.5M/yr to $1M/yr...

Interesting to note, too, that Laforge mentioned a month or two ago that with a favorable CBA we could start to think about a new building in about 10 years, then this comes out as a 10-year lease renewal at Northlands... hmmm...

Bart

barto is offline  
Old
04-07-2004, 07:28 PM
  #22
outKast*
 
Join Date: Mar 2003
Country: Canada
Posts: 2,664
vCash: 500
I hear Portland and Houston have a preety good fanbase. Hopefully, they want to keep the name "Oilers" too. joking!

outKast* is offline  
Old
04-07-2004, 11:17 PM
  #23
Hairball
Registered User
 
Hairball's Avatar
 
Join Date: Oct 2002
Location: Oiler Nation
Country: Canada
Posts: 2,533
vCash: 500
After reading the Sun this morning, I had the thought that this arrangement benefits Northlands also. I can't remember the specifics but they are guaranteed appx $500,000 (i think it was 467,000) per year from it aren't they? The article made it sound like they were struggling to remain one of the top trade show sites in Western Canada. They need to expand and they need more money from the city. I guess this helps them out also, having that revenue certainty.

Hairball is offline  
Old
04-08-2004, 12:36 PM
  #24
barto
Registered User
 
Join Date: May 2002
Location: Edmonton
Posts: 2,465
vCash: 500
A slight update - I did see an article in the Journal yesterday (I think it was the front page of the Business section) that talked about Northlands' plans for expansion (doubling the size of the Agricom, for starters!) to be able to handle all the trade shows, etc., that there's a demand for.

There was something in there about the City having dropped its payments from $2.4M/yr to $2.2M, but that that would continue past this 2004 deal. Sounded like an 'indefinite' thing to me, but I don't have that paper handy. Here it is - hope the direct link still works (maybe only until the 14th, as it's in the "7-day archive" section):

http://makeashorterlink.com/?V5E2129F7

Essentially says the City keeps paying it as long as the team stays in Edmonton. I didn't know that...!

Bart

barto is offline  
Old
04-08-2004, 02:32 PM
  #25
t0mf00lery
Registered User
 
t0mf00lery's Avatar
 
Join Date: Sep 2003
Location: Barrie, Ontario
Country: Canada
Posts: 2,857
vCash: 500
Quote:
Originally Posted by thome_26
Ya, I'm pretty sure that was said about the ice plant. But the Owners are spending more - although they didn't increase salary and really, with how they've worked it out, could end up going in to next year with the same pay roll (barring plus or minus a couple million) while adding a fairly high calibre UFA. They are spending money on upgrades for Rexall too - so they are spending more money - and the Canadian dollar is to thank for all of this! (and if those goofy easterners elect some conservatives it'll go up even more and the Oilers will be even better of!)
Please don't lump us all together. We have a Conservative government here in New Brunswick.

t0mf00lery is offline  
Closed Thread

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 04:59 PM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. ©2014 All Rights Reserved.