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

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.”

The city and the ownership group had already come to an agreement on the financials involved in the building and operation of the arena, with Daryl Katz stating last month that the he needs a better agreement in order to properly operate the new arena.

As it stood, Katz was set to not spend any money on the arena. Instead, the arena would be paid for by loan taken out by the city and paid back by Katz. In addition, Katz would receive revenue from the building 48 weeks out of the year, compared to solely on hockey nights as is currently the case with Rexall Place.

Former Edmonton Oilers and NHL legend Wayne Gretzky joined The Fan 590 in Toronto on Tuesday to voice his opinion that the team doesn’t have much of a chance of relocating.

Gretzky was seen at Monday night’s Seattle Seahawks game with Katz, sparking speculation that the team may be trying to move to Seattle, a city hungry for another professional sports team. Katz and the city of Edmonton have been in talks for a new arena for the past few years. The Oilers are using Seattle as leverage in their negotiations.

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.

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.

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.”

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